UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.  20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 30, 2015

OMNICELL, INC.
(Exact name of registrant as specified in its charter)

Delaware
 
000-33043
 
94-3166458
(State or other jurisdiction of
incorporation or organization)
 
(Commission File Number)
 
(IRS Employer Identification Number)

590 East Middlefield Road
Mountain View, CA 94043
(Address of principal executive offices, including zip code)

(650) 251-6100
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 




Item 2.02 Results of Operations and Financial Condition

On July 30, 2015, Omnicell, Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2015. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Number
 
Description of Document
99.1
 
Press release entitled "Omnicell Announces Second Quarter 2015 Results" dated July 30, 2015

 


2


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 
OMNICELL,  INC.
 
 
 
Dated: July 30, 2015
 
 
 
 
/s/ Dan S. Johnston
 
 
Dan S. Johnston
 
 
Executive Vice President and Chief Legal & Administrative Officer
                                                      
                                                                           

 


3


EXHIBIT INDEX

Number
 
Description of Document
99.1
 
Press release entitled "Omnicell Announces Second Quarter 2015 Results" dated July 30, 2015


 


4




Exhibit 99.1


Contact:
 
 
Rob Seim
 
Omnicell, Inc.
Chief Financial Officer
 
590 East Middlefield Road
800-850-6664, ext. 6478
 
Mountain View, CA 94043
rob.seim@omnicell.com
 
 


Omnicell Announces Second Quarter 2015 Results

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


MOUNTAIN VIEW, Calif. -- July 30, 2015 -- 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.


1


“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.

Omnicell Conference Call Information

Omnicell will hold a conference call today, Thursday, July 30, 2015 at 1:30 p.m. PT to discuss second quarter financial results. The conference call can be monitored by dialing 1-800-696-5518 within the U.S. or 1-706-758-4883 for all other locations. The Conference ID # is 86450368. Internet users can access the conference call at http://ir.omnicell.com/events.cfm. A replay of the call will be available today at approximately 4:30 p.m. PT and will be available until 11:59 p.m. PT on August 13, 2015. The replay access numbers are 1-855-859-2056 within the U.S. and 1-404-537-3406 for all other locations, Conference ID # is 86450368.

 



2




About Omnicell

Since 1992, Omnicell (NASDAQ: OMCL) has been creating new efficiencies to improve patient care, anywhere it is delivered. Omnicell is a leading supplier of comprehensive automation and business analytics software for patient-centric medication and supply management across the entire health care continuum from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home.

More than 3,000 customers worldwide have utilized Omnicell Automation and Analytics solutions to increase operational efficiency, reduce errors, deliver actionable intelligence and improve patient safety. Omnicell Medication Adherence solutions, including its MTS Medication Technologies brand, provide innovative medication adherence packaging solutions to help reduce costly hospital readmissions. In addition, these solutions enable approximately 6,000 institutional and retail pharmacies worldwide to maintain high accuracy and quality standards in medication dispensing and administration while optimizing productivity and controlling costs.

For more information about Omnicell, please visit www.omnicell.com.
 
Forward-Looking Statements
 
To the extent any statements contained in this release deal with information that is not historical, these statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. As such, they are subject to the occurrence of many events outside Omnicell’s control and are subject to various risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such statements include, but are not limited to Omnicell’s momentum, pipeline and new sales opportunities, profit and revenue growth, and the success of Omnicell’s strategy for growth, including differentiated products, expansion into new markets and targeted acquisitions. Risks that contribute to the uncertain nature of the forward-looking statements include our ability to take advantage of the growth opportunities in medication management across the spectrum of healthcare settings from long term care to home care, unfavorable general economic and market conditions, risks to growth and acceptance of our products and services, including competitive conversions, and to growth of the clinical automation and workflow automation market generally, the potential of increasing competition, potential regulatory changes, the ability of the company to improve sales productivity to grow product bookings, to develop new products and to acquire and successfully integrate companies. These and other risks and uncertainties are described more fully in Omnicell’s most recent filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements contained in this press release speak only as of the date on which they were made. Omnicell undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information
 
This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Our management evaluates and makes operating decisions using various performance measures. In addition to Omnicell’s GAAP results, we also consider non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income, and non-GAAP net income per diluted share. Additionally, we calculate Adjusted EBITDA (another non-GAAP measure) by means of adjustments to GAAP Net Income. These non-GAAP results should not be considered as an alternative to gross profit, operating expenses, net income, net income per diluted share, or any other performance measure derived in accordance with GAAP. We present these non-GAAP results because we consider them to be important supplemental measures of Omnicell’s performance.

 

3


Our non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income and non-GAAP net income per diluted share are exclusive of certain items to facilitate management’s review of the comparability of Omnicell’s core operating results on a period to period basis because such items are not related to Omnicell’s ongoing core operating results as viewed by management. We define our “core operating results” as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items:

a)  Stock-based compensation expense impact of Accounting Standards Codification (ASC) 718. We recognize equity plan-related compensation expenses, which represent the fair value of all share-based payments to employees, including grants of employee stock options, as required under ASC 718, Compensation - Stock Compensation (ASC 718) as non-GAAP adjustments in each period.

b) Intangible assets amortization from business acquisitions. We excluded from our non-GAAP results the intangible assets amortization expense resulting from our past acquisitions. These non-cash charges are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results.

c) Gain on business combination of an equity investment. We excluded from our non-GAAP results the gain on a minority equity investment in a private company, Avantec Healthcare Ltd., which was recognized in relation to the acquisition by Omnicell of the remainder of the company. This non-cash gain is not considered by management to reflect the core cash-generating performance of the business and therefore is excluded from our non-GAAP results.

Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Omnicell’s control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock option grants.
 
We believe that the presentation of these non-GAAP financial measures is warranted for several reasons:
 
1) Such non-GAAP financial measures provide an additional analytical tool for understanding Omnicell’s financial performance by excluding the impact of items which may obscure trends in the core operating results of the business;
 
2) Since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency and enhances investors’ ability to compare our performance across financial reporting periods;
 
3) These non-GAAP financial measures are employed by Omnicell’s management in its own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting; and
 
4) These non-GAAP financial measures facilitate comparisons to the operating results of other companies in our industry, which use similar financial measures to supplement their GAAP results, thus enhancing the perspective of investors who wish to utilize such comparisons in their analysis of our performance.

 

4


Set forth below are additional reasons why share-based compensation expense related to ASC 718 is excluded from our non-GAAP financial measures:

i)  While share-based compensation calculated in accordance with ASC 718 constitutes an ongoing and recurring expense of Omnicell, it is not an expense that requires cash settlement by Omnicell. We therefore exclude these charges for purposes of evaluating core operating results. Thus, our non-GAAP measurements are presented exclusive of stock-based compensation expense to assist management and investors in evaluating our core operating results.
 
ii) We present ASC 718 share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation, under ASC 718 are dependent upon the trading price of Omnicell’s common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results.
 
Our Adjusted EBITDA calculation is defined as earnings before interest income and expense, taxes, depreciation and amortization, and non-cash expenses, including ASC 718 stock compensation expense, as well as excluding certain non-GAAP adjustments.

As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for Omnicell’s GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:
 
· Omnicell’s stock option and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in Omnicell’s GAAP results for the foreseeable future under ASC 718.
 
· Other companies, including companies in Omnicell’s industry, may calculate non-GAAP financial measures differently than Omnicell, limiting their usefulness as a comparative measure.
 
Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between Omnicell’s non-GAAP and GAAP financial results is set forth in the financial tables at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release and in Omnicell’s SEC filings.

 

5



Omnicell, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)

 
Three Months Ended
 
Six Months Ended
 
June 30,
2015
 
March 31,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Revenues:
 
 
 
 
 
 
 
 
 
Product
$
89,154

 
$
94,109

 
$
85,244

 
$
183,263

 
$
167,824

Services and other revenues
23,634

 
22,112

 
19,808

 
45,746

 
38,992

Total revenues
112,788

 
116,221

 
105,052

 
229,009

 
206,816

Cost of revenues:
 
 
 
 
 
 
 
 
 
Cost of product revenues
46,203

 
45,416

 
41,003

 
91,619

 
79,903

Cost of services and other revenues
9,123

 
9,120

 
8,009

 
18,243

 
16,378

Total cost of revenues
55,326

 
54,536

 
49,012

 
109,862

 
96,281

Gross profit
57,462

 
61,685

 
56,040

 
119,147

 
110,535

Operating expenses:
 
 
 
 
 
 
 
 
 
Research and development
8,746

 
8,019

 
6,471

 
16,765

 
12,592

Selling, general and administrative
39,735

 
43,287

 
37,011

 
83,022

 
75,431

Gain on business combination
(3,443
)
 
—

 
—

 
(3,443
)
 
—

Total operating expenses
45,038

 
51,306

 
43,482

 
96,344

 
88,023

Income from operations
12,424

 
10,379

 
12,558

 
22,803

 
22,512

Interest and other income (expense), net
(472
)
 
(517
)
 
(40
)
 
(989
)
 
(296
)
Income before provision for income taxes
11,952

 
9,862

 
12,518

 
21,814

 
22,216

Provision for income taxes
3,201

 
3,544

 
4,729

 
6,745

 
8,233

Net income
$
8,751

 
$
6,318

 
$
7,789

 
$
15,069

 
$
13,983

Net income per share:
 
 
 
 
 
 
 
 
 
Basic
$
0.24

 
$
0.18

 
$
0.22

 
$
0.42

 
$
0.39

Diluted
$
0.24

 
$
0.17

 
$
0.21

 
$
0.41

 
$
0.38

Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
Basic
36,120

 
36,024

 
35,661

 
36,072

 
35,451

Diluted
37,030

 
36,914

 
36,618

 
36,987

 
36,478


 


6



Omnicell, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
 
June 30, 2015
 
December 31, 2014
 
 
 
 
ASSETS
Current assets:
 

 
 
Cash and cash equivalents
$
88,028

 
$
125,888

Accounts receivable, net
117,307

 
82,763

Inventories
46,027

 
31,554

Prepaid expenses
15,401

 
23,518

Deferred tax assets
12,490

 
12,446

Other current assets
6,071

 
7,215

Total current assets
285,324

 
283,384

Property and equipment, net
34,772

 
36,178

Long-term net investment in sales-type leases
10,208

 
10,848

Goodwill
149,654

 
122,720

Intangible assets, net
94,285

 
82,667

Long-term deferred tax assets
1,397

 
1,144

Other long-term assets
25,382

 
23,273

Total assets
$
601,022

 
$
560,214

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 

 
 
Accounts payable
$
26,085

 
$
19,432

Accrued compensation
18,573

 
19,874

Accrued liabilities
33,419

 
19,299

Deferred service revenue
23,527

 
25,167

Deferred gross profit
36,671

 
28,558

Total current liabilities
138,275

 
112,330

Non-current deferred service revenue
19,056

 
20,308

Non-current deferred tax liabilities
32,723

 
30,454

Other long-term liabilities
11,620

 
7,024

Total liabilities
201,674

 
170,116

Stockholders’ equity:
 

 
 

Total stockholders’ equity
399,348

 
390,098

Total liabilities and stockholders’ equity
$
601,022

 
$
560,214



 

7


Omnicell, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
 
Six months ended June 30,
 
2015
 
2014
Operating Activities
 
 
 
Net income
$
15,069

 
$
13,983

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
11,977

 
9,391

Gain (loss) on disposal of fixed assets
(5
)
 
202

Gain on business combination
(3,443
)
 
—

Provision for receivable allowance
480

 
436

Share-based compensation expense
7,301

 
5,449

Income tax benefits from employee stock plans
3,087

 
3,058

Excess tax benefits from employee stock plans
(3,159
)
 
(3,326
)
Provision for excess and obsolete inventories
168

 
250

Deferred income taxes
(1,717
)
 
860

Changes in operating assets and liabilities:
 
 
 
Accounts receivable, net
(27,676
)
 
(24,408
)
Inventories
(9,633
)
 
(335
)
Prepaid expenses
8,234

 
2,144

Other current assets
1,507

 
1,602

Net investment in sales-type leases
353

 
622

Other long-term assets
64

 
228

Accounts payable
1,364

 
2,494

Accrued compensation
(1,654
)
 
(3,910
)
Accrued liabilities
5,752

 
2,424

Deferred service revenue
(2,892
)
 
2,640

Deferred gross profit
6,008

 
10,788

Other long-term liabilities
(995
)
 
829

Net cash provided by operating activities
10,190

 
25,421

Investing Activities
 
 
 
Acquisition of intangible assets, intellectual property and patents
(225
)
 
(191
)
Software development for external use
(6,127
)
 
(5,507
)
Purchases of property and equipment
(3,764
)
 
(7,335
)
Business acquisition, net of cash acquired
(23,625
)
 
—

Net cash used in investing activities
(33,741
)
 
(13,033
)
Financing Activities
 
 
 
Proceeds from issuances under stock-based compensation plans
9,432

 
11,813

Employees' taxes paid related to restricted stock units
(2,046
)
 
(1,729
)
Common stock repurchases
(25,021
)
 
(4,069
)
Excess tax benefits from employee stock plans
3,159

 
3,326

Net cash (used) provided by financing activities
(14,476
)
 
9,341

Effect of exchange rate changes on cash and cash equivalents
167

 
119

Net (decrease) increase in cash and cash equivalents
(37,860
)
 
21,848

Cash and cash equivalents at beginning of period
125,888

 
104,531

Cash and cash equivalents at end of period
$
88,028

 
$
126,379


8


Omnicell, Inc.
Reconciliation of GAAP to Non-GAAP
(Unaudited, in thousands, except per share data)
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
 
 
 
June 30,
2015
 
March 31,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP net income to non-GAAP net income:
 
 
 
 
 
 
GAAP net income
$
8,751

 
$
6,318

 
$
7,789

 
$
15,069

 
$
13,983

Adjustments:
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense:
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues
532

 
517

 
264

 
1,049

 
532

 
 
Operating expenses
3,104

 
3,148

 
2,456

 
6,252

 
4,917

 
 
Total share-based compensation expense (a)
3,636

 
3,665

 
2,720

 
7,301

 
5,449

 
Amortization of acquired intangibles:
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues
531

 
368

 
368

 
899

 
736

 
 
Operating expenses
1,279

 
863

 
680

 
2,142

 
1,360

 
 
Total Amortization of acquired intangibles:
1,810

 
1,231

 
1,048

 
3,041

 
2,096

 
Income tax effect of non-GAAP adjustments  (b)
(485
)
 
(443
)
 
(395
)
 
(928
)
 
(774
)
 
 
Total Amortization of acquired intangibles, net:
1,325

 
788

 
653

 
2,113

 
1,322

 
Gain on business combination
(3,443
)
 
—

 
—

 
(3,443
)
 
—

Non-GAAP net income
$
10,269

 
$
10,771

 
$
11,162

 
$
21,040

 
$
20,754

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP gross profit to non-GAAP gross profit:
 
 
 
 
 
 
 
 
 
Revenues
 
$
112,788

 
$
116,221

 
$
105,052

 
$
229,009

 
$
206,816

 
GAAP gross profit
57,462

 
61,685

 
56,040

 
119,147

 
110,535

 
GAAP gross margin
50.9%
 
53.1%
 
53.3%
 
52.0%
 
53.4%
 
 
Share-based compensation expense
532

 
517

 
264

 
1,049

 
532

 
 
Amortization of acquired intangibles
531

 
368

 
368

 
899

 
736

 
Non-GAAP gross profit
$
58,525

 
$
62,570

 
$
56,672

 
$
121,095

 
$
111,803

 
Non-GAAP gross margin
51.9%
 
53.8%
 
53.9%
 
52.9%
 
54.1%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
 
 
 
 
 
 
GAAP operating expenses
$
45,038

 
$
51,306

 
$
43,482

 
$
96,344

 
$
88,023

 
GAAP operating expenses % to total revenue
39.9%
 
44.1%
 
41.4%
 
42.1%
 
42.6%
 
Share-based compensation expense
(3,104
)
 
(3,148
)
 
(2,456
)
 
(6,252
)
 
(4,917
)
 
Amortization of acquired intangibles
(1,279
)
 
(863
)
 
(680
)
 
(2,142
)
 
(1,360
)
 
Gain on business combination
$
3,443

 
$
—

 
$
—

 
$
3,443

 
$
—

Non-GAAP operating expenses
$
44,098

 
$
47,295

 
$
40,346

 
$
91,393

 
$
81,746

 
Non-GAAP operating expenses % to total revenue
39.1%
 
40.7%
 
38.4%
 
39.9%
 
39.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP income from operations to non-GAAP income from operations:
 
 
 
 
GAAP income (loss) from operations
$
12,424

 
$
10,379

 
$
12,558

 
$
22,803

 
$
22,512

 
GAAP operating income % to total revenue
11.0%
 
8.9%
 
12.0%
 
10.0%
 
10.9%
 
Share-based compensation expense
3,636

 
3,665

 
2,720

 
7,301

 
5,449

 
Amortization of acquired intangibles
1,810

 
1,231

 
1,048

 
3,041

 
2,096

 
Gain on business combination
(3,443
)
 
—

 
—

 
(3,443
)
 
—

Non-GAAP income from operations
$
14,427

 
$
15,275

 
$
16,326

 
$
29,702

 
$
30,057

 
Non-GAAP operating income % to total revenue
12.8%
 
13.1%
 
15.5%
 
13.0%
 
14.5%

9


 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
 
 
 
June 30,
2015
 
March 31,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP shares - diluted
37,030

 
36,914

 
36,618

 
36,987

 
36,478

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP net income per share - diluted
$
0.24

 
$
0.17

 
$
0.21

 
$
0.41

 
$
0.38

Adjustments:
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
0.10

 
0.10

 
0.07

 
0.20

 
0.15

 
Amortization of acquired intangibles
0.04

 
0.02

 
0.02

 
0.06

 
0.04

 
Gain on business combination
(0.10
)
 
—

 
—

 
(0.10
)
 
—

Non-GAAP net income per share - diluted
$
0.28

 
$
0.29

 
$
0.30

 
$
0.57

 
$
0.57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP EBITDA to non-GAAP EBITDA:
 
 
 
 
 
 
 
 
 
GAAP net income
$
8,751

 
$
6,318

 
$
7,789

 
$
15,069

 
$
13,983

Add back:
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
3,636

 
3,665

 
2,720

 
7,301

 
5,449

 
Interest (income) and expense, net
84

 
99

 
(32
)
 
183

 
(35
)
 
Depreciation and amortization expense
6,264

 
5,711

 
4,779

 
11,975

 
9,391

 
Income tax expense
3,201

 
3,544

 
4,729

 
6,745

 
8,233

 
Gain on business combination
$
(3,443
)
 
$
—

 
$
—

 
$
(3,443
)
 
$
—

Non-GAAP adjusted EBITDA (c)
$
18,493

 
$
19,337

 
$
19,985

 
$
37,830

 
$
37,021

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

____________________________________________

(a) 
This adjustment reflects the accounting impact of non-cash stock-based compensation expense for the periods presented.
(b) 
Tax effects are calculated using the effective tax rates for the respective periods presented.
(c) 
Defined as earnings before interest income and expense, taxes, depreciation and amortization, and non-cash expenses, including stock compensation expense, per ASC 718, as well as excluding certain non-GAAP adjustments.

 








10


Omnicell, Inc.
Segmented Information
(Unaudited, in thousands, except for percentages)


 
Three Months Ended June 30, 2015
 
Three Months Ended June 30, 2014
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
 
 
Revenues
$
88,701

 
$
24,087

 
$
112,788

 
$
84,702

 
$
20,350

 
$
105,052

Cost of revenues
39,403

 
15,923

 
55,326

 
35,992

 
13,020

 
49,012

Gross profit
49,298

 
8,164

 
57,462

 
48,710

 
7,330

 
56,040

Gross margin %
55.6%
 
33.9%
 
50.9%
 
57.5%
 
36.0%
 
53.3%
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
25,978

 
5,910

 
31,888

 
26,044

 
4,800

 
30,844

Income from segment operations
$
23,320

 
$
2,254

 
25,574

 
$
22,666

 
$
2,530

 
25,196

Operating margin %
26.3%
 
9.4%
 
22.7%
 
26.8%
 
12.4%
 
24.0%
 
 
 
 
 
 
 
 
 
 
 
 
Corporate costs
 
 
 
 
13,150

 
 
 
 
 
12,638

Income from operations
 
 
 
 
$
12,424

 
 
 
 
 
$
12,558



 


11


Omnicell, Inc.
Segmented Information
(Unaudited, in thousands, except for percentages)



 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
 
 
Revenues
$
181,480

 
$
47,529

 
$
229,009

 
$
166,201

 
$
40,615

 
$
206,816

Cost of revenues
78,255

 
31,607

 
109,862

 
70,932

 
25,349

 
96,281

Gross profit
103,225

 
15,922

 
119,147

 
95,269

 
15,266

 
110,535

Gross margin %
56.9%
 
33.5%
 
52.0%
 
57.3%
 
37.6%
 
53.4%
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
54,567

 
12,251

 
66,818

 
51,146

 
9,451

 
60,597

Income from segment operations
$
48,658

 
$
3,671

 
52,329

 
$
44,123

 
$
5,815

 
49,938

Operating margin %
26.8%
 
7.7%
 
22.9%
 
26.5%
 
14.3%
 
24.1%
 
 
 
 
 
 
 
 
 
 
 
 
Corporate costs
 
 
 
 
29,526

 
 
 
 
 
27,426

Income from operations
 
 
 
 
$
22,803

 
 
 
 
 
$
22,512



 







12


Omnicell, Inc.
Segment Information - Non-GAAP Gross Margin and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)

 
Three Months Ended June 30, 2015
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
88,701

 
 
 
$
24,087

 
 
 
$
112,788

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Gross profit
$
49,298

 
55.6%
 
$
8,164

 
33.9%
 
$
57,462

 
50.9%
Plus:
 
 
 
 
 
 
 
 
 
 
 
a) Stock-based compensation expense
370

 
0.4%
 
$
162

 
0.7%
 
532

 
0.5%
b) Amortization expense of acquired intangible
assets and other acquisition-related expenses
199

 
0.2%
 
$
332

 
1.4%
 
531

 
0.5%
Non-GAAP Gross profit
$
49,867

 
56.2%
 
$
8,658

 
35.9%
 
$
58,525

 
51.9%
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Operating income
$
23,320

 
26.3%
 
$
2,254

 
9.4%
 
$
25,574

 
22.7%
Plus:
 
 
 
 
 
 
 
 
 
 
 
a) Stock-based compensation expense
1,207

 
1.4%
 
377

 
1.6%
 
1,584

 
1.4%
b) Amortization expense of acquired intangible
assets and other acquisition-related expenses
724

 
0.8%
 
1,086

 
4.5%
 
1,810

 
1.6%
c) Gain on business combination
(3,443
)
 
(3.9)%
 
$
0

 
—%
 
(3,443
)
 
(3.1)%
Non-GAAP Operating income
$
21,808

 
24.6%
 
$
3,717

 
15.4%
 
$
25,525

 
22.6%
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Corporate costs
 
 
 
 
 
 
 
 
$
13,150

 
11.7%
Less: Stock-based compensation expense
 
 
 
 
 
 
 
 
2,052

 
1.8%
Non-GAAP Corporate costs
 
 
 
 
 
 
 
 
$
11,098

 
9.8%
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Income from operations
 
 
 
 
 
 
 
 
$
14,427

 
12.8%

 



13



 
Three Months Ended June 30, 2014
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
84,702

 
 
 
$
20,350

 
 
 
$
105,052

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Gross profit
$
48,710

 
57.5%
 
$
7,330

 
36.0%
 
$
56,040

 
53.3%
Plus:
 
 
 
 
 
 
 
 
 
 
 
a) Stock-based compensation expense
226

 
0.3%
 
$
38

 
0.2%
 
264

 
0.3%
b) Amortization expense of acquired intangible
assets and other acquisition-related expenses
35

 
0.0%
 
$
333

 
1.6%
 
368

 
0.4%
Non-GAAP Gross profit
$
48,971

 
57.8%
 
$
7,701

 
37.8%
 
$
56,672

 
53.9%
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Operating income
$
22,666

 
26.8%
 
$
2,530

 
12.4%
 
$
25,196

 
24.0%
Plus:
 
 
 
 
 
 
 
 
 
 
 
a) Stock-based compensation expense
1,020

 
1.2%
 
168

 
0.8%
 
1,188

 
1.1%
b) Amortization expense of acquired intangible
assets and other acquisition-related expenses
147

 
0.2%
 
901

 
4.4%
 
1,048

 
1.0%
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Operating income
$
23,833

 
28.1%
 
$
3,599

 
17.7%
 
$
27,432

 
26.1%
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Corporate costs
 
 
 
 
 
 
 
 
$
12,638

 
12.0%
Less: Stock-based compensation expense
 
 
 
 
 
 
 
 
1,532

 
1.5%
Non-GAAP Corporate costs
 
 
 
 
 
 
 
 
$
11,106

 
10.6%
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Income from operations
 
 
 
 
 
 
 
 
$
16,326

 
15.5%

 



14
Omnicell (NASDAQ:OMCL)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Omnicell Charts.
Omnicell (NASDAQ:OMCL)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Omnicell Charts.