Omnicell Announces Second Quarter 2015 Results

Revenue of $112.8 million grew 7.4% Year-Over-Year

July 30, 2015

MOUNTAIN VIEW, Calif.

Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its second quarter ended June 30, 2015.

GAAP results: Revenue for the second quarter of 2015 was $112.8 million, down $3.4 million or 3.0% from the first quarter of 2015, and up $7.7 million or 7.4% from the second quarter of 2014. Revenue for the six months ended June 30, 2015 was $229.0 million, up $22.2 million or 10.7% from the six months ended June 30, 2014.  

Second quarter 2015 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $8.8 million, or $0.24 per diluted share. This compares to GAAP net income of $6.3 million, or $0.17 per diluted share, for the first quarter of 2015, and GAAP net income of $7.8 million, or $0.21 per diluted share, for the second quarter of 2014.  

GAAP net income for the six months ended June 30, 2015 was $15.1 million, or $0.41 per diluted share, which included a $3.4 million gain on business combination of an equity investment. GAAP net income was $14.0 million, or $0.38 per diluted share, for the six months ended June 30, 2014.

Non-GAAP results: Non-GAAP net income for the second quarter of 2015 was $10.3 million, or $0.28 per diluted share, excluding $3.6 million of stock-based compensation expense and $1.3 million ($1.8 million net of $0.5 million tax effect) of amortization expense for all intangible assets associated with past acquisitions. Non-GAAP net income for the second quarter also excludes $3.4 million gain on the Company's 2012 minority equity investment in Avantec Healthcare Ltd., which was recorded as part of Omnicell's acquisition of the remainder of Avantec Healthcare Ltd. in April. This compares to non-GAAP net income of $11.2 million, or $0.30 per diluted share, for the second quarter of 2014. Non-GAAP net income for the second quarter of 2014 excluded $2.7 million of stock-based compensation expense and $0.6 million ($1.0 million net of $0.4 million tax effect) of amortization expense for all intangible assets associated with past acquisitions. Second quarter 2015 results compare to non-GAAP net income of $10.8 million, or $0.29 per diluted share, for the first quarter of 2015. Non-GAAP net income for the first quarter of 2015 excludes $3.7 million of stock-based compensation expense and $0.8 million ($1.2 million net of $0.4 million tax effect) of amortization expense for all intangible assets associated with past acquisitions.  

Non-GAAP net income for the six months ended June 30, 2015 was $21.0 million, or $0.57 per diluted share. Non-GAAP net income for the six months ended June 30, 2015, excludes $7.3 million of stock-based compensation expense and $2.1 million ($3.0 million net of the $0.9 million tax effect) of amortization expense for all intangible assets associated with past acquisitions. Non-GAAP net income for the six months ended June 30, 2015 also excludes $3.4 million gain on business combination of an equity investment in Avantec Healthcare Ltd. This compares to non-GAAP net income of $20.8 million, or $0.57 per diluted share for the six months ended June 30, 2014, excluding $5.4 million of stock-based compensation expense and $1.3 million ($2.1 million net of $0.8 million tax effect) of amortization expense for all intangible assets associated with past acquisitions.

“Omnicell’s business has grown well from 2014 with a strong contribution from new customer orders. A small sequential decline in revenue due to timing of customer implementations affected our results for the second quarter, but our order intake and the pipeline of new sales opportunities demonstrate that we have not lost market momentum.” said Randall Lipps, Omnicell president, chairman and CEO. “Driven by our three-leg growth strategy of differentiated products, expansion into new markets and targeted acquisitions, the company has all the ingredients for continued success.”

Reporting Segments

As reported last quarter, beginning the first quarter of 2015, Omnicell enhanced the management of its business, operating structure and segment reporting structure by excluding certain corporate-level costs from our reporting segments based on how the Chief Operating Decision Maker (“CODM”) reviews the business. Corporate-level costs may include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. Omnicell's CODM allocates resources and evaluates the performance of our segments using information about its revenues, gross profit and income from operations, excluding certain costs which are managed separately at the corporate level.

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