Omnicell Announces Third Quarter 2013 Results

Results include record revenues and profit larger than expectations

October 31, 2013

MOUNTAIN VIEW, Calif.

Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its quarter ended September 30, 2013.

GAAP results: Revenue for the third quarter of 2013 was $94.0 million, up $0.4 million or 0.4% from the second quarter of 2013, and up $9.7 million or 11.5% from the third quarter of 2012. Revenue for the nine months ended September 30, 2013 was $274.8 million, up $51.0 million or 22.8% from the nine months ended September 30, 2012.

Third quarter 2013 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $7.8 million, or $0.21 per diluted share. This compares to net income of $6.0 million, or $0.17 per diluted share, in the second quarter of 2013 and net income of $6.9 million, or $0.20 per diluted share, in the third quarter of 2012. For the nine months ended September 30, 2013, net income was $17.2 million, or $0.48 per diluted share. This compares to net income of $10.6 million, or $0.31 per diluted share, for the nine months ended September 30, 2012.

Non-GAAP results: Non-GAAP net income was $11.3 million for the third quarter of 2013, or $0.31 per diluted share. Non-GAAP net income for the third quarter excludes $2.8 million of stock-based compensation expense and $1.1 million ($0.8 million net of the $0.3 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier. This compares to non-GAAP net income of $9.9 million, or $0.29 per diluted share for the third quarter of 2012, excluding $2.4 million of stock-based compensation expense and $1.1 million ($0.7 million net of the $0.4 million tax effect) of amortization expense for all intangible assets acquired in connection with acquisitions made by Omnicell in 2012 and earlier.  Third quarter 2013 results compare to non-GAAP net income of $9.4 million, or $0.27 per diluted share for the second quarter of 2013. Non-GAAP net income for the second quarter excluded $2.7 million of stock-based compensation expense and $1.1 million ($0.7 million net of the $0.4 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier. 

For the nine months ended September 30, 2013, non-GAAP net income was $28.1 million, or $0.79 per diluted share. Non-GAAP net income for the nine months ended September 30, 2013 excludes $8.4 million of stock-based compensation expense and $3.2 million ($2.1 million net of the $1.1 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier.  For the nine months ended September 30, 2012, non-GAAP net income was $21.2 million, or $0.62 per diluted share. Non-GAAP net income for the nine months ended September 30, 2012 excludes $6.8 million of stock-based compensation expense, $4.9 million of acquisition transaction and integration costs ($2.9 million net of the $2.0 million tax effect), and $1.6 million ($1.0 million net of the $0.6 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2012 and earlier.

“I’m pleased that Omnicell remains on pace with 2013 growth and profit projections,” said Randall Lipps, Omnicell President, Chairman and CEO.

“Our three-leg strategy for expansion into new markets, clearly differentiated products, and targeted acquisition of new technology continues to propel Omnicell growth and position us well competitively. This quarter results, which include our highest revenue ever, record non-GAAP earnings, and a record volume of new orders, demonstrate the value of our solution in the evolving healthcare landscape.”

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