Omnicell Reports First Quarter 2020 Results

GAAP and non-GAAP revenues of $229.7 million, up 13.4% year-over-year
GAAP net income per diluted share of $0.26, up 225.0% year-over-year
Non-GAAP net income per diluted share of $0.66, up 8.2% year-over-year
Omnicell’s Response to Coronavirus (COVID-19)

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 7, 2020--Omnicell, Inc. (NASDAQ:OMCL), a leading provider of medication management solutions and adherence tools for healthcare systems and pharmacies, today announced results for its first quarter ended March 31, 2020.

GAAP Results

GAAP revenues for the first quarter of 2020 were $229.7 million, up $27.2 million, or 13.4% from the first quarter of 2019.

First quarter 2020 GAAP net income was $11.3 million, or $0.26 per diluted share. This compares to GAAP net income of $3.3 million, or $0.08 per diluted share, for the first quarter of 2019.

Non-GAAP Results

Non-GAAP revenues for the first quarter of 2020 were $229.7 million, up $27.2 million, or 13.4%, from the first quarter of 2019.

Non-GAAP net income for the first quarter of 2020 was $28.9 million, or $0.66 per diluted share. This compares to non-GAAP net income of $25.8 million, or $0.61 per diluted share, for the first quarter of 2019.

Non-GAAP net income for each period excludes, when applicable, the effect of share-based compensation expense, amortization expense of acquired intangible assets, acquisition-related expenses, restructuring and severance-related expenses, tax restructuring benefits and expenses, and amortization of debt issuance costs.

Omnicell’s Response to Coronavirus (COVID-19)

Keeping in mind our role in the healthcare industry, we are closely monitoring the COVID-19 pandemic. Our top priorities are protecting the health and well-being of our customers, their patients, and our employees, while maintaining business continuity to meet the needs of our customers. Our manufacturing and distribution facilities have remained open due to our qualification as an essential business and we continue to manufacture our products with limited disruptions. The vast majority of our non-manufacturing and non-customer facing personnel have transitioned to a work from home environment.

To support the needs of our customers on the frontline of the pandemic, we have launched a Rapid Response program to fast-track production and deployment of our XT Series automated dispensing systems to our customers. We have streamlined our ordering and installation processes with preconfigured XT Series medication and supply dispensing systems that are designed to offer our customers flexibility and maximum emergency impact. In addition, to minimize the need for onsite visits and respect social distancing protocols, we are providing remote service options, training programs, and product demonstrations for our customers, and leveraging technology to enable our sales team to operate in a remote sales environment.

From a supply chain perspective, we are working closely with our vendors to help ensure we are able to source key components and maintain appropriate inventory levels to meet customer demand. To date, we have experienced very little disruption in our supply chain, which has enabled us to continue operating our factories at full capacity to serve our customer base.

During the second half of March 2020 and into May 2020, we started to see a slowdown of product bookings and expect to see lower product bookings and revenues during the fiscal year 2020 compared to management’s expectations prior to the COVID-19 outbreak. With respect to bookings for new sales, beginning in the second half of March, we have seen hospitals begin to slow purchasing decisions. Additionally, our ability to access hospitals in order to perform implementations of capital equipment will likely be delayed in many cases, as many hospitals are consumed with treating sick patients. Health systems are facing increased costs due to large surge expenditures to cover COVID-19 caseload and increasing prices for needed equipment, decreased revenue due to cancelled or postponed elective procedures and other reduced demand, as well as cash flow challenges. As a result of the slowdown in purchasing decisions and our reduced interactions with our customers due to social distancing protocols, our bookings are behind our internal estimates as of this time. Although there are some encouraging signs for our business medium-term as the country begins a gradual process to re-open a portion of the economy and elective surgeries resume, we believe hospital spending will be materially disrupted in the near- to medium-term and it is not possible to predict how long this pattern will continue. We anticipate COVID-19 driven demand disruptions to negatively impact 2020 results versus prior guidance and we do not believe we can provide meaningful near- to medium-term direction at this time.

While our fiscal year 2020 results will be impacted by the challenges and opportunities brought on by the COVID-19 pandemic, we remain confident in the overall health of our business and in our ability to continue to execute on our long-term strategy and navigate through these unusual times. However, the impact of the COVID-19 pandemic and related containment measures cannot be predicted and may adversely affect, perhaps materially, our business, results of operations, financial condition, and liquidity.

“Our mission to be a trusted partner for our customers has never been more critical,” said Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell. “Our teams have mobilized to quickly deliver the solutions and intelligence needed to support critical care needs, while protecting the health and safety of our customers and employees, and maintaining business continuity.”

2020 Guidance

As a result of the uncertainty surrounding the COVID-19 pandemic, including due to the uncertain scope, duration, and impact of the pandemic and uncertain timing of global recovery and economic normalization, the Company withdraws its previously issued full year 2020 financial guidance that was provided on February 6, 2020, and is unable to provide second quarter or full year 2020 guidance at this time.