Omnicell Announces Record Setting Fourth Quarter 2012 and Full Year 2012 Results

   Omnicell Announces Record Setting Fourth Quarter 2012 and Full Year 2012
                                   Results

PR Newswire

MOUNTAIN VIEW, Calif., Jan. 31, 2013

MOUNTAIN VIEW, Calif., Jan. 31, 2013 /PRNewswire/ --Omnicell,Inc. (NASDAQ:
OMCL), a leading provider of medication and supply management solutions to
healthcare systems, today announced results for its fourth quarter and year
ended December 31, 2012, which includes results of MTS Medication
Technologies, Inc. ("MTS"), acquired by Omnicell in May 2012.

(Logo: http://photos.prnewswire.com/prnh/20120731/SF48971LOGO-a)

GAAP results: Revenue for the fourth quarter of 2012 was $90.2 million, up
$27.2 million or 43.3% from the fourth quarter of 2011 and up $5.8 million or
6.9% from the third quarter of 2012. Revenue for the year ended December31,
2012 was $314.0 million, up $68.5 million or 27.9% from the year ended
December31, 2011.

Fourth quarter 2012 net income as reported in accordance with U.S. generally
accepted accounting principles (GAAP) was $5.5 million, or $0.16 per diluted
share. This compares to net income of $4.1 million, or $0.12 per diluted share
in the fourth quarter of 2011 and net income of $6.9 million, or $0.20 per
diluted share in the third quarter of 2012. For the year ended December31,
2012, net income was $16.2 million, or $0.47 per diluted share. This compares
to net income of $10.4 million, or $0.30 per diluted share for the year ended
December31, 2011.

Non-GAAP results: Non-GAAP net income was $8.6 million for the fourth quarter
of 2012, or $0.25 per diluted share. Non-GAAP net income for the fourth
quarter excludes $2.4 million of stock-based compensation expense and the $0.6
million after-tax effect of amortization expense for all intangible assets
acquired in connection with the acquisition of MTS in May2012, and earlier
Omnicell acquisitions. This compares to non-GAAP net income of $6.4 million,
or $0.19 per diluted share for the fourth quarter of 2011, excluding $2.2
million of stock-based compensation expense. Fourth quarter 2012 results
compare to non-GAAP net income of $9.9 million, or $0.29 per diluted share for
the third quarter of 2011. Non-GAAP net income for the third quarter excludes
$2.4 million of stock-based compensation expense and the $0.7 million
after-tax effect of amortization expense for all intangible assets acquired in
connection with the acquisition of MTS and earlier Omnicell acquisitions.
Non-GAAP net income was $29.8 million for the year ended December31, 2012, or
$0.87 per diluted share, which excluded $9.2 million of stock-based
compensation expense and the $4.4 million after-tax effect of acquisition
costs and amortization expense. Non-GAAP net income was $20.5 million for the
year ended December31, 2011, or $0.60 per diluted share, excluding $9.5
million of stock-based compensation expense and $1.0 million of pre-tax
litigation claims settlement expense, net of a $0.4 million tax effect.

Product backlog as of December31, 2012 totaled $155 million, up $21 million
or 16% from December31, 2011.

"We are very pleased with the company's performance in the fourth quarter and
fiscal 2012. For a year in which we celebrated Omnicell's twentieth
anniversary as a company, it is extremely rewarding to report record bookings
and revenue for our Acute Care segment," said Randall Lipps, Omnicell
president, chairman and CEO.

"We close 2012 having achieved annual revenue exceeding $300 million, a major
milestone in the progress of Omnicell. One of the highlights of the year was
the acquisition of MTS Medication Technologies," added Mr. Lipps, "which
significantly broadens our automated medication management offerings across
the patient care delivery continuum to include both Acute and Non-Acute Care
settings."

"These record-setting results, combined with our inspired people and
customer-centric innovation strategy, provide us great momentum to carry into
2013," he said.

Omnicell Conference Call Information

Omnicell will hold a conference call today at 1:15 p.m. PT to discuss fourth
quarter and year-end 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 91533597. 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 3:30 p.m. PT and will be available
until 8:59p.m. PT on February 8, 2013. The replay access numbers are
1-855-859-2056 within the U.S. and 1-404-537-3406 for all other locations,
conference code # 91533597.

About Omnicell

Omnicell,Inc. (NASDAQ: OMCL) is a leading provider of automation and business
information solutions enabling hospitals and other healthcare organizations to
streamline the medication administration process and manage costly medical
supplies for increased operational efficiency and enhanced patient safety.
Through seamless integration with a customer's existing IT infrastructure,
Omnicell solutions empower healthcare facilities to achieve comprehensive
automation of medication and supply management from the arrival at the loading
dock to the patient's bedside. Omnicell also provides healthcare facilities
with business analytics software designed to improve medication diversion
detection and regulatory compliance.

Since 1992, more than 2,700 hospital customers worldwide have utilized
Omnicell's medication automation, supply chain and analytics solutions to
enable them to increase patient safety, improve efficiency and address
changing healthcare regulations while providing effective control of costs,
charge capture for payer reimbursement and inventory management of medications
and supplies.

MTS Medication Technologies,Inc., a wholly-owned Omnicell subsidiary, is a
leader in medication adherence packaging systems designed to improve
medication dispensing and administration. MTS enables approximately 6,000
institutional and retail pharmacies worldwide to maintain high accuracy and
quality standards while optimizing productivity and controlling costs. The MTS
product line includes more than 20 packaging machines and 50 types of
consumable products.

For more information about Omnicell, please visit www.omnicell.com. Visit
www.mts-mt.com for more information about MTS.

Forward-Looking Statements

To the extent any statements contained in this release deal with information
that is not historical, these statements are necessarily forward-looking. 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. The risk factors are described in the Company's
Securities and Exchange Commission (SEC) filings and include, the potential
failure to realize the anticipated benefits of the MTS acquisition,
unfavorable general economic and market conditions, risks to growth and
acceptance of our products and services and to growth of the clinical
automation and workflow automation market generally, the potential of
increasing competition, potential regulatory changes, and the ability of the
company to improve sales productivity to grow product backlog, retain key
personnel, to cut expenses, to manage future changes in revenue levels, to
develop new products and integrate acquired companies, products or
intellectual property in a timely and cost-effective manner. Prospective
investors are cautioned not to place undue reliance on forward-looking
statements.

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.

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, "Stock Compensation" as non-GAAP adjustments in each period.

b) Litigation settlement (net of tax). We recorded an accrual in the first
quarter of 2011 for settlement of litigation claims for $1.0 million ($0.6
million net of the $0.4 million income tax effect).This charge is not
expected to be recurring and, as such, the financial impact is excluded from
our non-GAAP results.

c) Acquisition-related transaction and integration expenses. In connection
with our acquisition of MTS, we recorded $4.9 million of acquisition
transaction and integration costs ($2.9 million net of the $2.0 million tax
effect) in the second quarter of 2012. This charge is not expected to be
recurring and, as such, the financial impact is excluded from our non-GAAP
results.

d) Intangible assets amortization from business acquisitions. Beginning in the
second quarter of 2012 (without revising prior periods), we are also excluding
from our non-GAAP results the amortization expense resulting from the MTS
acquisition as well as earlier Omnicell acquisitions. This impacts the fourth
quarter non-GAAP results by $1.1 million ($0.6 million net of the $0.5 million
tax effect). This also impacts the second quarter and third quarter non-GAAP
results by $0.5 million ($0.3 million net of the $0.2 million tax effect) and
$1.1 million ($0.7 million net of the $0.4 million tax effect), respectively.
The year-ended December 31, 2012 non-GAAP results are affected by $2.7 million
($1.6 million net of $1.1 million tax effect). 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.

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.

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. In addition, we are excluding
the transaction and integration costs from the May2012 MTS acquisition from
the results for the year ending December 31, 2012.

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:

  oOmnicell'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.
  oOther 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

(in thousands, except per share data)


                ThreeMonthsEnded                         YearEnded
                December31,  September30,  December31,  December31,
                2012           2012      2011          2012          December31,
                                                                         2011 (1)
                (unaudited)   (unaudited)    (unaudited)   (unaudited)
Revenues:
Product         $   72,415    $    67,446    $   47,281    $   247,654   $   185,864
                                                                     
                              16,885
Services and    17,754                       15,650        66,373        59,671
other revenues
Total revenue   90,169        84,331         62,931        314,027       245,535
Cost of
revenues:
Cost of
product         32,871        30,636         19,572        112,403       79,567
revenues
Cost of                                                              
services and
other revenues  7,956         7,608          7,480         31,070        30,184
Total cost of   40,827        38,244         27,052        143,473       109,751
revenues
Gross profit    49,342        46,087         35,879        170,554       135,784
Operating
expenses:
Research and    6,188         5,545          5,903         23,726        22,042
development
Selling,                                                             
general, and
administrative  33,363        29,316         23,807        119,745       97,520
Total
operating       39,551        34,861         29,710        143,471       119,562
expenses
Income from                                                           
operations      9,791
                              11,226         6,169         27,083        16,222
Other income
and (expense),  (108)         34             (67)          (51)          (133)
net
Income before                                                        
provision for
income taxes    9,683         11,260         6,102         27,032        16,089
Provision for   4,168         4,340          1,964         10,871        5,700
income taxes
Net income      $   5,515     $    6,920     $   4,138     $   16,161    $   10,389
Net income per
share:
Basic           $   0.17      $    0.21      $   0.13      $   0.49      $   0.31
Diluted         $   0.16      $    0.20      $   0.12      $   0.47      $   0.30
Weighted
average shares
outstanding:
Basic           33,282        33,193         33,097        33,307        33,123
Diluted         34,128        34,068         34,114        34,213        34,103

(1) Information derived from our December31, 2011 audited Consolidated
    Financial Statements.





Omnicell, Inc.

Condensed Consolidated Balance Sheets

(In thousands)


                                                 December31,  December31,
                                                 2012          2011
                                                 (unaudited)   (1)
ASSETS
Current assets:
Cash and cash equivalents                        $   62,313    $   191,762
Short-term investments                           —             8,107
Accounts receivable, net                         55,116        38,661
Inventories                                      26,903        18,107
Prepaid expenses                                 15,392        10,495
Deferred tax assets                              12,108        10,352
Other current assets                             9,052         6,107
Total current assets                             180,884       283,591
Property and equipment, net                      34,260        17,306
Non-current net investment in sales-type leases  13,229        8,785
Goodwill                                         113,404       28,543
Other intangible assets                          85,158        4,231
Non-current deferred tax assets                  1,018         11,677
Other assets                                     15,778        9,716
Total assets                                     $   443,731   $   363,849
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                 $   18,256    $   11,000
Accrued compensation                             11,613        7,328
Accrued liabilities                              13,895        8,901
Deferred service revenue                         20,449        19,191
Deferred gross profit                            20,772        14,210
Total current liabilities                        84,985        60,630
Non-current deferred service revenue             19,892        18,966
Non-current deferred tax liabilities             26,404        —
Other long-term liabilities                      4,866         1,339
Total liabilities                                136,147       80,935
Stockholders' equity:
Total stockholders' equity                       307,584       282,914
Total liabilities and stockholders' equity       $   443,731   $   363,849

(1) Information derived from our December31, 2011 audited Consolidated
    Financial Statements.





Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

(In thousands, except per share data, unaudited)


              ThreeMonthsEnded
              December 31, 2012     September30,2012    December 31, 2011
              Net      Netincome   Net      Netincome   Net      Netincome
              income  pershare-  income  pershare-  income  pershare-
                       diluted              diluted              diluted
GAAP          $ 5,515  $    0.16    $ 6,920  $    0.20    $ 4,138  $    0.12
Non-GAAP
adjustments:
Business
acquisition
costs
Amortization
of                                                      
intangible
assets                                                  
acquired by
acquisition   1,057                 1,057                 —
(a)
Subtotal      
pretax                              1,057                 —
adjustments   1,057
Income tax                                               
effect of                           
non-GAAP                                                 
adjustments                         (407)
(b)          (423)                                       —

              
Subtotal                            650                   —
after-tax     634
adjustments
ASC 718
share-based
compensation
adjustment
(c)
Gross profit  236                   275                   290
Operating     2,197                 2,086                 1,955
expenses
Total
after-tax     3,067    0.09         3,011    0.09         2,245    0.07
adjustments
Non-GAAP      $ 8,582  $    0.25    $ 9,931  $    0.29    $ 6,383  $    0.19

(a)Beginning with the second quarter of 2012, we are recognizing the
amortization expense resulting from all intangible assets recorded from
business acquisitions as a non-GAAP adjustment, including MTS and prior
acquisitions.
(b) Tax effects are calculated using the effective tax rates for the
respective periods presented.
(c)This adjustment reflects the accounting impact of non-cash stock-based
compensation expense related to the impact of ASC 718 for the periods shown.



Omnicell, Inc.

Reconciliation of GAAP to Non-GAAP

(In thousands, except per share data, unaudited)


                                  YearEnded
                                  December 31, 2012      December 31, 2011
                                  Net       Netincome   Net       Netincome
                                  income   pershare-  income   pershare-
                                            diluted               diluted
GAAP                              $ 16,161  $    0.47    $ 10,389  $   0.30
Non-GAAP adjustments:
Business acquisition costs
Transaction and integration       4,855
costs for acquisitions (a)
Amortization of intangible
assets acquired by acquisition    2,672
(b)
Litigation settlement (c)         —                      1,000
Subtotal pretax adjustments       7,527                  1,000
Income tax effect of non-GAAP     (3,086)                (380)
adjustments (d)
Subtotal after-tax adjustments    4,441                  620
ASC 718 share-based compensation
adjustment (e)
Gross profit                      1,012                  1,398
Operating expenses                8,202                  8,101
Total after tax adjustments       13,655    0.40         10,119    0.30
Non-GAAP                          $ 29,816  $    0.87    $ 20,508  $   0.60

(a) This adjustment is for the incurrence of transaction and integration
costs related to our acquisition of MTS in May2012.
(b)Beginning with the second quarter of 2012, we are recognizing the
amortization expense resulting from all intangible assets recorded from
business acquisitions as a non-GAAP adjustment, including MTS and prior
acquisitions.
(c)The 2011 adjustment is for the accrual of a $1.0 million pre-tax
litigation settlement in operating expenses ($0.6 million, net of tax effect
of $0.4 million) in the first quarter of 2011.
(d) Tax effects are calculated using the effective tax rates for the
respective periods presented.
(e)This adjustment reflects the accounting impact of non-cash stock-based
compensation expense related to the impact of ASC 718 for the periods shown.





Omnicell, Inc.

Calculation of Adjusted EBITDA (1)

(In thousands, unaudited)


                        ThreeMonthsEnded                 YearEnded
                        December  September30,  December  December  December
                        31,       2012           31,       31,       31,
                        2012                     2011     2012     2011
GAAP net income         $ 5,515   $    6,920     $ 4,138   $ 16,161  $ 10,389
Add back:
ASC 718 stock           2,433     2,361          2,245     9,214     9,499
compensation expense
Transaction and
integration costs for   —         —              —         4,855     —
acquisitions, pre-tax
Litigation settlement,  —         —              —                   1,000
pre-tax
Interest                (2)       9              (21)      (48)      (205)
Depreciation and        4,077     3,913          2,163     13,323    7,984
amortization expense
Income tax expense      4,168     4,340          1,964     10,871    5,700
Non-GAAP adjusted       $ 16,191  $    17,543    $ 10,489  $ 54,376  $ 34,367
EBITDA (1)

(1)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 excluding certain non-GAAP
adjustments. The non-GAAP adjustments for the year ended December 31, 2012
also exclude transaction and integration costs for MTS, acquired in May2012.
The non-GAAP adjustments for the year ended December 31, 2011 also exclude
first quarter 2011 expense for a pre-tax litigation settlement.



SOURCE Omnicell, Inc.

Website: http://www.omnicell.com
Contact: Rob Seim, Chief Financial Officer, 1-800-850-6664, ext. 6478,
rob.seim@omnicell.com