Omnicell Reports Results for Fiscal Year and Fourth Quarter 2018

Feb 07, 2019

Mountain View, California

Record yearly GAAP revenues of $787.3 million

Record yearly Non-GAAP revenues of $787.3 million

2018 GAAP net income per diluted share of $0.93

Record 2018 Non-GAAP net income per diluted share of $2.09

Record ending product backlog of $478 million

Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its fiscal year and fourth quarter ended December 31, 2018.

GAAP Results 

GAAP revenues for the fourth quarter of 2018 were $211.8 million, up $15.4 million, or 7.8% from the fourth quarter of 2017. GAAP revenues for the year ended December 31, 2018 were $787.3 million, up $74.6 million, or 10.5% from the year ended December 31, 2017. 

Fourth quarter 2018 GAAP net income as reported was $14.8 million, or $0.36 per diluted share. This compares to GAAP net income of $31.2 million, or $0.79 per diluted share, for the fourth quarter of 2017. 

GAAP net income for the year ended December 31, 2018 was $37.7 million, or $0.93 per diluted share. GAAP net income was $30.5 million, or $0.79 per diluted share, for the year ended December 31, 2017. 

Non-GAAP Results 

Non-GAAP revenues for the fourth quarter of 2018 were $211.8 million, up $15.1 million, or 7.7% from the fourth quarter of 2017.  Non-GAAP revenues for the year ended December 31, 2018 were $787.3 million, up $73.3 million, or 10.3% from the year ended December 31, 2017. 

Non-GAAP net income for the fourth quarter of 2018 was $29.1 million, or $0.70 per diluted share. This compares to non-GAAP net income of $21.5 million, or $0.55 per diluted share, for the fourth quarter of 2017. 

Non-GAAP net income for the year ended December 31, 2018 was $84.6 million, or $2.09 per diluted share.  This compares to non-GAAP net income of $54.6 million, or $1.41 per diluted share for the year ended December 31, 2017. 

Non-GAAP net income for each period excludes, when applicable, the effect of share-based compensation expense, amortization expense of acquired intangible assets, acquisition-related expenses, fair value adjustments related to business acquisitions, restructuring and severance-related expenses, tax reform and restructuring income tax benefits, contingent gains, and amortization of debt issuance cost.

Total product bookings for the year ended December 31, 2018 were $716 million compared to total bookings of $568 million for the year ended December 31, 2017. Total product backlog for the year ended December 31, 2018 was $478 million compared to $345 million for the year ended December 31, 2017, or an increase of 39% year over year. 

“With the launch of our Autonomous Pharmacy vision at ASHP Midyear, health system pharmacists are understanding and embracing the need for radical change in medication management,” said Randall A. Lipps, chairman, president, chief executive officer, and founder of Omnicell. “We continue to partner with our customers to drive this revolutionary, digital approach, which will help allow nurses and pharmacists to move away from manual workflows and operate at the top of their license.”

2018 Business Highlights:

  • During 2018, the Company continued its cadence of innovation and introduced new products and solutions to the market including:
    • the XR2 Automated Central Pharmacy System, a robotic solution that is a significant step towards fully automating central pharmacy operations in a variety of settings;
    • IVX Workflow, which operates on IVX Cloud, creating a significant technological advancement for sterile compounding workflow processes and enabling pharmacies to safely and efficiently compound and prepare IV doses; and
    • the Patient Engagement Platform, which introduces new medication adherence capabilities and expands the reach of these solutions to Payer networks;
  • During the year, the Company has experienced good momentum on new products and has received numerous contractual purchase commitments for multiple products in the Omnicell Platform;
  • For the year ended December 31, 2018, the Company’s product backlog was $478 million, an increase of 39% from one year ago;
  • For the year ended December 31, 2018, the Company reported record product bookings of $716 million, an increase of 26% from one year ago; and
  • In December 2018, the Company announced its vision for the Autonomous Pharmacy. Omnicell’s vision for the Autonomous Pharmacy integrates a comprehensive set of solutions across three key areas:  Automation solutions designed to digitize and streamline workflows; Intelligence that provides actionable insights to better understand medication usage and improve pharmacy supply chain management; and Work - expert services that serve as an extension of pharmacy operations to support improved efficiency, regulatory compliance, and patient outcomes.

2019 Guidance:

For the first quarter of 2019, the Company expects non-GAAP total revenues to be between $196 million and $202 million. The Company expects non-GAAP product revenues to be between $140 million and $145 million, and non-GAAP service revenues to be between $56 million and $57 million. The Company expects first quarter 2019 non-GAAP earnings to be between $0.38 and $0.43 per share. 

For the year 2019, the Company expects product bookings to be between $745 million and $780 million. 

For the same period, the Company expects non-GAAP total revenues to be between $880 million and $900 million. The Company expects non-GAAP product revenues to be between $652 million and $668 million, and non-GAAP service revenues to be between $228 million and $232 million. The Company expects 2019 non-GAAP earnings to be between $2.40 and $2.60 per share.

To continue reading this article and to review the financial tables, please click here.