Omnicell Reports Earnings for Fiscal Year and Fourth Quarter 2015

Record quarterly revenue of $130.3 million, representing 7.2% year over year growth

Record yearly revenue of $484.6 million, representing 9.9% year over year growth

Record quarterly Non-GAAP diluted EPS of $0.40, representing 11.1% quarter over quarter growth

Feb 04, 2016, 16:01 ET from Omnicell, Inc.

MOUNTAIN VIEW, Calif., Feb. 4, 2016 /PRNewswire/ -- 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, 2015. 

GAAP results: Revenue for the fourth quarter of 2015 was $130.3 million, up $5.1 million or 4.1% from the third quarter of 2015, and up $8.8 million or 7.2% from the fourth quarter of 2014. Revenue for the year ended December 31, 2015 was $484.6 million, up $43.7 million or 9.9% from the year ended December 31, 2014.

Fourth quarter 2015 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $7.7 million, or $0.21 per diluted share. This compares to GAAP net income of $8.0 million, or $0.22 per diluted share, for the third quarter of 2015, and GAAP net income of $9.2 million, or $0.25 per diluted share, for the fourth quarter of 2014.

GAAP net income for the year ended December 31, 2015 was $30.8 million, or $0.84 per diluted share, which includes a $3.4 million gain on business combination of an equity investment. GAAP net income was $30.5 million, or $0.83 per diluted share, for the year ended December 31, 2014.

Non-GAAP results: Non-GAAP net income for the fourth quarter of 2015 was $14.4 million, or $0.40 per diluted share, excluding $3.7 million of stock-based compensation expense, $1.2 million, net of tax effect of $0.7 million, of amortization expense for all intangible assets associated with past acquisitions and $2.0 million, net of tax effect of $0.9 million, of acquisition expenses associated with the Aesynt acquisition. This compares to non-GAAP net income of $14.3 million, or $0.39 per diluted share, for the fourth quarter of 2014. Non-GAAP net income for the fourth quarter of 2014 excluded $4.2 million of stock-based compensation expense and $0.9 million, net of tax effect of $0.4 million, of amortization expense for all intangible assets associated with past acquisitions. Fourth quarter 2015 results compare to non-GAAP net income of $13.2 million, or $0.36 per diluted share, for the third quarter of 2015. Non-GAAP net income for the third quarter of 2015 excludes $4.0 million of stock-based compensation expense and $1.2 million, net of tax effect of $0.8 million, of amortization expense for all intangible assets associated with past acquisitions.

Non-GAAP net income for the year ended December 31, 2015 was $48.7 million, or $1.33 per diluted share. Non-GAAP net income for the year ended December 31, 2015 excludes $14.9 million of stock-based compensation expense, $4.5 million, net of tax effect of $2.4 million of amortization expense for all intangible assets associated with past acquisitions and $2.0 million net of tax effect of $0.9 million, of acquisition expenses associated with the Aesynt acquisition. Non-GAAP net income for the year ended December 31, 2015 also excludes a $3.4 million gain on business combination of an equity investment in Avantec. Non-GAAP net income for the year ended December 31, 2014 was $46.1 million, or $1.26 per diluted share, excluding $12.8 million of stock-based compensation expense and $2.8 million, net of tax effect of $1.7 million of amortization expense for all intangible assets associated with our business acquisitions.

Total bookings for the year ended December 31, 2015 were $392.3 million and total bookings for the year ended December 31, 2014 were $364.0 million.

"I am pleased with the company's performance and our consistent track record," said Randall Lipps, Omnicell president, chairman and CEO. "For eleven consecutive years we have increased our market share and gained new thought leading customers every quarter. Together with our customers, we are consistently delivering state of the art medication management and workflow efficiency for caregivers and better healthcare for patients. These record-setting results provide great momentum for us in 2016."

2016 Guidance:

The guidance is inclusive of the recently acquired Aesynt business:

For the year 2016, we project product bookings to be between $540 and $560 million, revenue to be between $695 and $715 million. We expect non-GAAP earnings to be between $1.50 and $1.60 per share, and non-GAAP operating margins to be approximately 12.7%. For the year 2016 expected non-GAAP results include approximately $10 million of integration expenses, primarily related to our acquisition of Aesynt, and approximately $6 million of interest expense related to the loan facility used to finance the Aesynt acquisition. We expect our annual effective tax rate to be 38% of GAAP earnings.

For the first quarter of 2016 we expect revenue to be between $165 and $170 million and expected Non-GAAP EPS to be between $0.25 and $0.28 per share.

Reporting Segments

As previously reported, 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, February 4, 2016 at 2:30 p.m. PT to discuss fourth 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 27500940. 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 5:30 p.m. PT and will be available until 11:59 p.m. PT on February 18, 2016. 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 27500940.

About Omnicell

Since 1992, Omnicell (NASDAQ: OMCL) has been creating innovative solutions to improve patient care, anywhere it is delivered. Omnicell is a leading supplier of comprehensive automation and business analytics software for 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 patient's home.

Approximately 4,000 customers worldwide use Omnicell automation and analytics solutions to increase operational efficiency, reduce medication errors, deliver actionable intelligence and improve patient safety. The recent acquisition of Aesynt adds distinct capabilities, particularly in central pharmacy and IV robotics, creating the broadest medication management product portfolio in the industry.

The Omnicell SureMed solution provides innovative medication adherence packaging to help reduce costly hospital readmissions. In addition, these solutions enable approximately 7,000 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, Inc. 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 income from operations, 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.

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) Acquisitions related expenses. We excluded from our non-GAAP results the expenses which are related to the recent acquisitions. These expenses are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these acquisition related expenses provides more meaningful comparisons of the financial results to our historical operations and forward looking guidance and the financial results of less acquisitive peer companies. Further, these expenses are not considered by management to reflect the core performance of the business and therefore are excluded from our non-GAAP results.

d) 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, 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 compensation plans.

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.

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 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 other 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.

Omnicell, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)



Three Months Ended


Years Ended


December 31,
2015


September 30,
2015


December 31,
2014


December 31,
2015


December 31,
2014

Revenues:










Product

$

104,193



$

100,941



$

100,291



$

388,397



$

360,344


Services and other revenues

26,123



24,293



21,250



96,162



80,556


  Total revenues

130,316



125,234



121,541



484,559



440,900


Cost of revenues:










Cost of product revenues

55,099



51,700



49,005



198,418



173,419


Cost of services and other revenues

10,137



9,831



8,757



38,211



33,621


  Total cost of revenues

65,236



61,531



57,762



236,629



207,040


Gross profit

65,080



63,703



63,779



247,930



233,860


Operating expenses:










Research and development

9,219



9,176



8,132



35,160



27,802


Selling, general and administrative

43,891



40,668



42,173



167,581



156,475


Gain on business combination







(3,443)




  Total operating expenses

53,110



49,844



50,305



199,298



184,277


Income from operations

11,970



13,859



13,474



48,632



49,583


Interest and other income (expense), net

(753)



(646)



(77)



(2,388)



(1,079)


Income before provision for income taxes

11,217



13,213



13,397



46,244



48,504


Provision for income taxes

3,562



5,177



4,162



15,484



17,986


Net income

$

7,655



$

8,036



$

9,235



$

30,760



$

30,518


Net income per share:










Basic

$

0.22



$

0.22



$

0.26



$

0.86



$

0.86


Diluted

$

0.21



$

0.22



$

0.25



$

0.84



$

0.83


Weighted average shares outstanding:










Basic

35,482



35,806



35,697



35,857



35,650


Diluted

36,172



36,613



36,585



36,718



36,622


 

Omnicell, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)



December 31,
2015


December 31,
2014





ASSETS

Current assets:




Cash and cash equivalents

$

82,217



$

125,888


Accounts receivable, net

107,957



82,763


Inventories

46,594



31,554


Prepaid expenses

19,586



23,518


Deferred tax assets*



12,446


Other current assets

7,774



7,215


Total current assets

264,128



283,384


Property and equipment, net

32,309



36,178


Long-term net investment in sales-type leases

14,484



10,848


Goodwill

147,906



122,720


Intangible assets, net

89,665



82,667


Long-term deferred tax assets

2,361



1,144


Other long-term assets

27,894



23,273


Total assets

$

578,747



$

560,214






LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:




Accounts payable

$

22,646



$

19,432


Accrued compensation

18,195



19,874


Accrued liabilities

30,133



19,299


Deferred service revenue

27,948



25,167


Deferred gross profit

25,708



28,558


Total current liabilities

124,630



112,330


Deferred service revenue, long-term

17,975



20,308


Long-term deferred tax liabilities

21,822



30,454


Other long-term liabilities

11,932



7,024


Total liabilities

176,359



170,116


Stockholders' equity:




Total stockholders' equity

402,388



390,098


Total liabilities and stockholders' equity

$

578,747



$

560,214



* In Q4 2015, the Company prospectively adopted ASU No. 2015-17, which required the reclassification of deferred tax assets and liabilities from current to non-current on its Consolidated Balance Sheets.

 

Omnicell, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)



Years Ended


2015


2014

Operating Activities




Net income

$

30,760



$

30,518


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

25,639



20,272


Loss on disposal of fixed assets

238



167


Impairment of equity investments



350


Gain on business combination

(3,443)




Provision for receivable allowance

354



941


Share-based compensation expense

14,921



12,785


Income tax benefits from employee stock plans

4,535



5,370


Excess tax benefits from employee stock plans

(4,724)



(5,834)


Provision for excess and obsolete inventories

369



542


Deferred income taxes

(1,092)



1,402


Changes in operating assets and liabilities:




 Accounts receivable, net

(18,295)



(22,799)


 Inventories

(10,401)



1,418


 Prepaid expenses

4,049



(4,296)


 Other current assets

638



53


 Net investment in sales-type leases

(4,661)



1,048


 Other long-term assets

496



297


 Accounts payable

(2,841)



1,611


 Accrued compensation

(2,032)



270


 Accrued liabilities

5,456



5,512


 Deferred service revenue

(2,880)



5,086


 Deferred gross profit

(2,641)



8,601


 Other long-term liabilities

(683)



1,849


Net cash provided by operating activities

33,762



65,163


Investing Activities




Acquisition of intangible assets, intellectual property and patents

(415)



(327)


Software development for external use

(12,132)



(10,353)


Purchases of property and equipment

(7,542)



(11,922)


Business acquisition, net of cash acquired

(25,507)



(20,723)


Net cash used in investing activities

(45,596)



(43,325)


Financing Activities




Proceeds from issuances under stock-based compensation plans

17,091



21,795


Employees' taxes paid related to restricted stock units

(3,627)



(3,744)


Common stock repurchases

(50,021)



(24,091)


Excess tax benefits from employee stock plans

4,724



5,834


Net cash used in financing activities

(31,833)



(206)


Effect of exchange rate changes on cash and cash equivalents

(4)



(275)


Net (decrease) increase in cash and cash equivalents

(43,671)



21,357


Cash and cash equivalents at beginning of period

125,888



104,531


Cash and cash equivalents at end of period

$

82,217



$

125,888


 

Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

(Unaudited, in thousands, except per share data and percentages)








Three Months Ended


Years Ended







December 31,
2015


September 30,
2015


December 31,
2014


December 31,
2015


December 31,
2014
















Reconciliation of GAAP net income to non-GAAP net income:







GAAP net income

$

7,655



$

8,036



$

9,235



$

30,760



$

30,518


Adjustments:











Share-based compensation expense:












Cost of revenues

481



581



483



2,111



1,456




Operating expenses

3,173



3,385



3,692



12,810



11,329




Total share-based compensation expense (a)

3,654



3,966



4,175



14,921



12,785



Amortization of acquired intangibles:












Cost of revenues

547



570



368



2,016



1,472




Operating expenses

1,354



1,408



865



4,904



3,003




Gross amortization of acquired intangibles:

1,901



1,978



1,233



6,920



4,475




Income tax effect (b)


(745)



(775)



(383)



(2,448)



(1,654)




Amortization of acquired intangibles, net

1,156



1,203



850



4,472



2,821



Acquisition related expenses

2,898







2,898






Income tax effect (b)


(920)







(920)





Acquisition related expenses, net

1,978







1,978





Gain on business combination







(3,443)




Non-GAAP net income

$

14,443



$

13,205



$

14,260



$

48,688



$

46,124

















Reconciliation of GAAP gross profit to non-GAAP gross profit:








Revenues


$

130,316



$

125,234



$

121,541



$

484,559



$

440,900



GAAP gross profit

65,080



63,703



63,779



247,930



233,860



GAAP gross margin

49.9%


50.9%


52.5%


51.2%


53.0%



Share-based compensation expense

481



581



483



2,111



1,456




Amortization of acquired intangibles

547



570



368



2,016



1,472



Non-GAAP gross profit

$

66,108



$

64,854



$

64,630



$

252,057



$

236,788



Non-GAAP gross margin

50.7%


51.8%


53.2%


52.0%


53.7%
















Reconciliation of GAAP operating expenses to non-GAAP operating expenses:





GAAP operating expenses

$

53,110



$

49,844



$

50,305



$

199,298



$

184,277



GAAP operating expenses % to total revenue

40.8%


39.8%


41.4%


41.1%


41.8%


Share-based compensation expense

(3,173)



(3,385)



(3,692)



(12,810)



(11,329)



Amortization of acquired intangibles

(1,354)



(1,408)



(865)



(4,904)



(3,003)



Acquisition related expenses

(2,898)







(2,898)





Gain on business combination







3,443




Non-GAAP operating expenses

$

45,685



$

45,051



$

45,748



$

182,129



$

169,945



Non-GAAP operating expenses % to total revenue

35.1%


36.0%


37.6%


37.6%


38.5%



































































Three Months Ended


Years Ended







December 31,
2015


September 30,
2015


December 31,
2014


December 31,
2015


December 31,
2014
















Reconciliation of GAAP income from operations to non-GAAP income from operations:





GAAP income from operations

$

11,970



$

13,859



$

13,474



$

48,632



$

49,583



GAAP operating income % to total revenue

9.2%


11.1%


11.1%


10.0%


11.2%


Share-based compensation expense

3,654



3,966



4,175



14,921



12,785



Amortization of acquired intangibles

1,901



1,978



1,233



6,920



4,475



Acquisition related expenses

2,898







2,898





Gain on business combination







(3,443)




Non-GAAP income from operations

$

20,423



$

19,803



$

18,882



$

69,928



$

66,843



Non-GAAP operating income % to total revenue

15.7%


15.8%


15.5%


14.4%


15.2%
















GAAP shares - diluted

36,172



36,613



36,585



36,718



36,622

















GAAP net income per share - diluted

$

0.21



$

0.22



$

0.25



$

0.84



$

0.83


Adjustments:











Share-based compensation expense

0.11



0.11



0.12



0.41



0.35



Amortization of acquired intangibles, net

0.03



0.03



0.02



0.12



0.08



Acquisition related expenses, net

0.05







0.05





Gain on business combination







(0.09)




Non-GAAP net income per share - diluted

$

0.40



$

0.36



$

0.39



$

1.33



$

1.26

















Reconciliation of GAAP net income to non-GAAP adjusted EBITDA:







GAAP net income

$

7,655



$

8,036



$

9,235



$

30,760



$

30,518


Add back:











Share-based compensation expense

3,654



3,966



4,175



14,921



12,785



Interest (income) and expense, net

89



138



18



410



38



Depreciation and amortization expense

7,182



6,482



5,566



25,639



20,272



Income tax expense

3,562



5,177



4,162



15,484



17,986



Acquisition related expenses, net

2,898







2,898





Gain on business combination







(3,443)




Non-GAAP adjusted EBITDA (c)

$

25,040



$

23,799



$

23,156



$

86,669



$

81,599


































(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.

 

Omnicell, Inc.

Segmented Information

(Unaudited, in thousands, except for percentages)



Three Months Ended December 31, 2015


Three Months Ended December 31, 2014


Automation
and
Analytics


Medication
Adherence


Total


Automation
and
Analytics


Medication
Adherence


Total





Revenues

$

105,874



$

24,442



$

130,316



$

98,347



$

23,194



$

121,541


Cost of revenues

48,020



17,216



65,236



41,983



15,779



57,762


Gross profit

57,854



7,226



65,080



56,364



7,415



63,779


Gross margin %

54.6%


29.6%


49.9%


57.3%


32.0%


52.5%













Operating expenses

28,889



5,937



34,826



27,363



6,313



33,676


Income from segment operations

$

28,965



$

1,289



30,254



$

29,001



$

1,102



30,103


Operating margin %

27.4%


5.3%


23.2%


29.5%


4.8%


24.8%













Corporate costs





18,284







16,629


Income from operations





$

11,970







$

13,474


 

Omnicell, Inc.

Segmented Information

(Unaudited, in thousands, except for percentages)



Year Ended December 31, 2015


Year Ended December 31, 2014


Automation
and
Analytics


Medication
Adherence


Total


Automation
and

Analytics


Medication

Adherence


Total





Revenues

$

390,321



$

94,238



$

484,559



$

354,095



$

86,805



$

440,900


Cost of revenues

171,943



64,686



236,629



151,327



55,713



207,040


Gross profit

218,378



29,552



247,930



202,768



31,092



233,860


Gross margin %

55.9%



31.4%



51.2%



57.3%



35.8%



53.0%














Operating expenses

114,084



24,258



138,342



105,929



20,586



126,515


Income from segment operations

$

104,294



$

5,294



109,588



$

96,839



$

10,506



107,345


Operating margin %

26.7%



5.6%



22.6%



27.3%



12.1%



24.3%














Corporate costs





60,956







57,762


Income from operations





$

48,632







$

49,583


 

Omnicell, Inc.

Segment Information Non-GAAP Gross Margin and Non-GAAP Operating Margin

(Unaudited, in thousands, except for percentages)



Three Months Ended December 31, 2015


Automation
and

Analytics


Medication
Adherence


Total













Revenues

$

105,874





$

24,442





$

130,316
















GAAP Gross profit

$

57,854



54.6%


$

7,226



29.6%


$

65,080



49.9%

Plus:












a) Stock-based compensation expense

411



0.4%


70



0.3%


481



0.4%

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

214



0.2%


333



1.4%


547



0.4%

Non-GAAP Gross profit

$

58,479



55.2%


$

7,629



31.2%


$

66,108



50.7%













GAAP Operating income

$

28,965



27.4%


$

1,289



5.3%


$

30,254



23.2%

Plus:












a) Stock-based compensation expense

1,472



1.4%


196



0.8%


1,668



1.3%

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

828



0.8%


1,072



4.4%


1,900



1.5%

Non-GAAP Operating income

$

31,265



29.5%


$

2,557



10.5%


33,822



26.0%













GAAP Corporate costs









18,284



14.0%

Less: Stock-based compensation expense









1,986



1.5%

Less: Acquisition related expenses









2,898



2.2%

Non-GAAP Corporate costs









13,400



10.3%













Non-GAAP Income from operations









$

20,422



15.7%

 


Three Months Ended December 31, 2014


Automation
and

Analytics


Medication
Adherence


Total













Revenues

$

98,347





$

23,194





$

121,541
















GAAP Gross profit

$

56,364



57.3%


$

7,415



32.0%


$

63,779



52.5%

Plus:












a) Stock-based compensation expense

348



0.4%


135



0.6%


483



0.4%

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

35



0.0%


333



1.4%


368



0.3%

Non-GAAP Gross profit

$

56,747



57.7%


$

7,883



34.0%


$

64,630



53.2%













GAAP Operating income

$

29,001



29.5%


$

1,102



4.8%


$

30,103



24.8%

Plus:












a) Stock-based compensation expense

1,679



1.7%


205



0.9%


1,884



1.6%

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

147



0.1%


1,086



4.7%


1,233



1.0%













Non-GAAP Operating income

$

30,827



31.3%


$

2,393



10.3%


33,220



27.3%













GAAP Corporate costs









16,629



13.7%

Less: Stock-based compensation expense









2,291



1.9%

Non-GAAP Corporate costs









14,338



11.8%













Non-GAAP Income from operations









$

18,882



15.5%

 

OMCL-E

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SOURCE Omnicell, Inc.



RELATED LINKS

http://www.omnicell.com