MOUNTAIN VIEW, Calif., Feb. 15, 2017 /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, 2016.

GAAP results: Revenue for the fourth quarter of 2016 was $172.0 million, down $4.8 million or 2.7% from the third quarter of 2016, and up $41.7 million or 32.0% from the fourth quarter of 2015. Revenue for the year ended December 31, 2016 was $692.6 million, up $208.1 million or 42.9% from the year ended December 31, 2015.

Fourth quarter 2016 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $0.2 million, or $0.00 per diluted share. This compares to GAAP net income of $2.0 million, or $0.05 per diluted share, for the third quarter of 2016, and GAAP net income of $7.7 million, or $0.21 per diluted share, for the fourth quarter of 2015.

GAAP net income for the year ended December 31, 2016 was $0.6 million, or $0.02 per diluted share. GAAP net income was $30.8 million, or $0.84 per diluted share, for the year ended December 31, 2015, which includes a $3.4 million gain on business combination of an equity investment.

Non-GAAP results: Non-GAAP revenue for the fourth quarter of 2016 was $174.6 million, down $4.8 million, or 2.7% from the third quarter of 2016, and up $44.3 million or 34.0% from the fourth quarter of 2015. Non-GAAP revenue for the twelve months ended December 31, 2016 was $703.3 million, up $218.7 million, or 45.1% from December 31, 2015.

Non-GAAP net income for the fourth quarter of 2016 was $13.8 million, or $0.37 per diluted share. This compares to non-GAAP net income of $14.9 million, or $0.40 per diluted share, for the third quarter of 2016 and $14.4 million, or $0.40 per diluted share, for the fourth quarter of 2015.

Non-GAAP net income for the year ended December 31, 2016 was $55.7 million, or $1.51 per diluted share. This compares to non-GAAP net income of $48.7 million, or $1.33 per diluted share for the year ended December 31, 2015. Non-GAAP net income for each period presented excludes, when applicable, the effect of stock-based compensation expense, amortization expense for all intangible assets associated with past acquisitions, acquisition expenses, fair value adjustments related to business acquisition, amortization of debt issuance cost, and gain on business combination of an equity investment in Avantec.

Total bookings for the year ended December 31, 2016 were $541 million compared to total bookings for the year ended December 31, 2015 of $392 million.

"2016 was a successful year for Omnicell with record bookings, revenues and earnings," said Randall Lipps, Omnicell president, CEO and chairman. "We are proud of the company's financial performance and our strategic execution aimed at supporting health systems in achieving their patient safety, operational and financial goals.''

"Our customers tell us medication management is central to their patient safety and operational strategies. Our recent wins showcase the strength of our comprehensive and innovative solutions that enable us to be a vital partner. The company is well positioned to take advantage of the great opportunities ahead in 2017,'' Mr. Lipps added.

2017 Guidance:

The fiscal year 2017 financial results are expected to be characterized by two distinct phases, as revenue and profitability are expected to be impacted by the Company's XT Series product introduction transition and manufacturing ramp up:

A. The first phase encompasses the introduction and ramp up of manufacturing for the XT Series in the first quarter of 2017, with anticipated dynamics including:


    --  Conversion of G4 product bookings and backlog, and sales quotes to XT
        Series bookings;
    --  XT Series manufacturing volume ramp up;
    --  Installation of the XT Series product at launch customers;
    --  XT Series manufacturing ramp up cost;
    --  Reduction of workforce by approximately 100 positions, and the closure
        of the Company's Tennessee office; and
    --  General hiring delays

For the first quarter of 2017, the Company expects non-GAAP revenue to be between $150 million and $155 million. Omnicell expects first quarter of 2017 non-GAAP earnings to be between $0.00 and $0.04 per share.

B. The second phase encompasses the acceleration of installations and conversion of product backlog into revenue during the second through the fourth quarters of 2017, with anticipated dynamics including:


    --  Launch of Acudose-Rx(®) on XT Series;
    --  Improvement of XT Series production cost;
    --  Above 20% growth rate for product bookings;
    --  Return to 8%-12% revenue organic growth range rate;
    --  XT Series cost of sales reductions as revenue ramps up;
    --  Continuation of cost reduction initiatives; and
    --  Implement development and manufacturing Centers of Excellence (''COEs")

As part of the next phase of the integration of the acquisition of Aesynt the Company is creating the following Centers of Excellence ("COEs") for product development, engineering, and manufacturing:


    --  the Point of Use COE in California;
    --  the Robotics and Central Pharmacy COE in Pittsburgh, Pennsylvania; and
    --  the Medication Adherence Consumables COE in St. Petersburg, Florida

The Company today announced a reduction of its workforce by approximately 100 full-time employees, or about 4% of its total headcount, anticipated to be completed in the first quarter of 2017. This reduction in force includes the closure of the Company's Nashville, Tennessee office, anticipated in the first quarter of 2017, and the closure of the Company's manufacturing facility in Slovenia, anticipated in the third quarter of 2017. The Company expects to incur approximately $4 million of restructuring expenses in connection with the reduction in force for one-time termination benefits, comprised principally of severance. The Company expects to incur approximately an additional $4 million of restructuring expenses in connection with facility leases, dilapidation, and other one-time facilities-related expenses.

For the second through the fourth quarters of 2017, the Company expects non-GAAP revenue to be between $590 million and $605 million, representing 8%-12% growth both on a reported and organic basis. For the second through fourth quarters of 2017, the Company expects non-GAAP earnings to be between $1.32 and $1.38 per share, representing above 15% growth, both on a reported and organic basis.

For the year 2017, Omnicell expects product bookings to be between $570 million and $590 million. The Company expects non-GAAP revenue to be between $740 million and $760 million, and non-GAAP earnings to be between $1.32 and $1.42 per share.

The table below summarizes Omnicell's 2017 guidance for the two distinct phases outlined above:



                          Q1'17                Q2'17 through Q4'17           Total Year 2017

     Product       <0% year over year          >20% year over year
     Bookings             growth                      growth          $570 million - $590 million

     Non-
     GAAP
     Revenue  $150 million - $155 million $590 million - $605 million $740 million - $760 million

     Non-
     GAAP
     EPS                    $0.00 - $0.04               $1.32 - $1.38               $1.32 - $1.42
     ----                   -------------               -------------               -------------

Reporting Segments

The Company's Chief Operating Decision Maker (''CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company's segments using information about its revenues, gross profit, and income from operations. Such evaluation excludes general corporate-level costs that are not specific to either of the reportable segments and are managed separately at the corporate level. Corporate-level costs include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. The operating results of the acquired Aesynt business acquired in the first quarter of 2016 are included in the Company's Automation and Analytics reportable segment. The operating results of the Ateb business acquired in the fourth quarter of 2016 are included in the Company's Medication Adherence reportable segment.

Omnicell Conference Call Information

Omnicell will hold a conference call today, Wednesday, February 15, 2017 at 1:30 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 36561632. 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 March 29, 2017. 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 36561632.

About Omnicell

Since 1992, Omnicell (NASDAQ: OMCL) has been inspired to create safer and more efficient ways to manage medications and supplies across all care settings. As a leader in medication and supply dispensing automation, central pharmacy automation, IV robotics, analytics software, and medication adherence and packaging systems, Omnicell is focused on improving care across the entire healthcare continuum-from the acute care hospital setting, to post-acute skilled nursing and long-term care facilities, to the patient's home.

Over 4,000 customers worldwide use Omnicell® automation and analytics solutions to increase operational efficiency, reduce medication errors, deliver actionable intelligence and improve patient safety.

Omnicell's innovative medication adherence solutions, used by over 32,000 institutional and retail pharmacies in North America and the United Kingdom, are designed to improve patient adherence to prescriptions, helping to reduce costly hospital readmissions.

Recent Omnicell acquisitions, including Ateb, add distinct capabilities, particularly in central pharmacy, IV robotics, and pharmacy software, creating the broadest medication management product portfolio in the industry.

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, bookings, 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, our ability to successfully convert product backlog and sales quotes to our XT Series, our ability to execute the manufacturing ramp up of XT Series, impact of the reduction in our workforce and closure of our Nashville and Slovenia facilities, our ability to continue cost reduction efforts, and our ability to implement development and manufacturing Centers of Excellence, 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 revenue, 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 revenue, 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. We excluded from our non-GAAP results the expense related to equity-based compensation plans as they represent expenses that do not require cash settlement from Omnicell.

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) Amortization of debt issuance cost. Debt issuance cost represents costs associated with the issuance of Term Loan and Revolving Line of Credit facilities. The cost includes underwriting fees, original issue discount, ticking fee, and legal fees. This non-cash expense is not considered by management to reflect the core cash-generating performance of the business and therefore is excluded from our non-GAAP results.

d) Acquisition accounting impact related to deferred revenue. In connection with acquisition of Aesynt, business combination rules require us to account for the fair values of arrangements for which acceptance has not been obtained, and post installation support has not been provided in our purchase accounting. The non-GAAP adjustment to our revenues is intended to include the full amounts of such revenues. We believe the adjustment to these revenues is useful as a measure of the ongoing performance of our business.

e) Inventory fair value adjustments. In connection with acquisition of Aesynt, business combination rules require us to account for the fair values of inventory acquired in our purchase accounting. The non-GAAP adjustment to the cost of revenues is intended to include the impact of such adjustment. We believe the adjustment is useful as a measure of the ongoing performance of our business.

f) Acquisition related expenses. We excluded from the 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.

g) 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 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 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.


                                                                                                            Omnicell, Inc.

                                                                                            Condensed Consolidated Statements of Operations

                                                                                           (Unaudited, in thousands, except per share data)


                                                               Three Months Ended                                                         Years Ended

                                         December 31,           September 30,               December 31,                     December 31,             December 31,
                                                 2016                     2016                        2015                               2016                  2015
                                                 ----                     ----                        ----                               ----                  ----

    Revenues:

    Product                                           $125,753                                                $133,621                                     $104,193              $517,944 $388,397

    Services and other
     revenues                                  46,221                               43,116                                  26,123                           174,679      96,162
                                               ------                               ------                                  ------                           -------      ------

      Total revenues                          171,974                              176,737                                 130,316                           692,623     484,559
                                              -------                              -------                                 -------                           -------     -------

    Cost of revenues:

    Cost of product revenues                   78,024                               76,188                                  55,099                           302,437     198,418

    Cost of services and other
     revenues                                  19,621                               19,041                                  10,137                            76,386      38,211
                                               ------                               ------                                  ------                            ------      ------

      Total cost of revenues                   97,645                               95,229                                  65,236                           378,823     236,629
                                               ------                               ------                                  ------                           -------     -------

    Gross profit                               74,329                               81,508                                  65,080                           313,800     247,930

    Operating expenses:

    Research and development                   14,902                               15,264                                   9,219                            57,799      35,160

    Selling, general and
     administrative                            59,608                               61,316                                  43,891                           249,520     167,581

    Gain on business
     combination                                    -                                   -                                      -                                -    (3,443)
                                                  ---                                 ---                                    ---                              ---     ------

      Total operating expenses                 74,510                               76,580                                  53,110                           307,319     199,298
                                               ------                               ------                                  ------                           -------     -------

    Income (loss) from
     operations                                 (181)                               4,928                                  11,970                             6,481      48,632

    Interest and other income
     (expense), net                           (1,656)                             (2,721)                                  (753)                          (8,429)    (2,388)
                                               ------                               ------                                    ----                            ------      ------

    Income (loss) before
     provision for income
     taxes                                    (1,837)                               2,207                                  11,217                           (1,948)     46,244

    Provision (benefit) for
     income taxes                             (1,994)                                 224                                   3,562                           (2,551)     15,484
                                               ------                                  ---                                   -----                            ------

    Net income                                            $157                                                  $1,983                                       $7,655                  $603  $30,760
                                                          ====                                                  ======                                       ======                  ====  =======

    Net income per share:

    Basic                                           $        -                                                  $0.05                                        $0.22                 $0.02    $0.86

    Diluted                                         $        -                                                  $0.05                                        $0.21                 $0.02    $0.84

    Weighted average shares outstanding:

    Basic                                      36,553                               36,332                                  35,482                            36,156      35,857

    Diluted                                    37,256                               37,079                                  36,172                            36,864      36,718


                                                     Omnicell, Inc.

                                         Condensed Consolidated Balance Sheets

                                               (Unaudited, in thousands)


                                                           December 31,             December 31,
                                                                   2016                      2015
                                                                   ----                      ----


                                                         ASSETS

    Current assets:

    Cash and cash equivalents                                               $54,488                        $82,217

    Accounts receivable, net                                    150,303                           107,957

    Inventories                                                  69,297                            46,594

    Prepaid expenses                                             28,646                            19,586

    Other current assets                                         12,674                             7,774
                                                                 ------                             -----

    Total current assets                                        315,408                           264,128

    Property and equipment, net                                  42,011                            32,309

    Long-term investment in sales-type
     leases, net                                                 20,585                            14,484

    Goodwill                                                    327,724                           147,906

    Intangible assets, net                                      190,283                            89,665

    Long-term deferred tax assets                                 4,041                             2,361

    Other long-term assets                                       35,051                            27,894

    Total assets                                                           $935,103                       $578,747
                                                                           ========                       ========


                                          LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

    Accounts payable                                                        $27,069                        $22,646

    Accrued compensation                                         26,722                            18,195

    Accrued liabilities                                          31,195                            30,133

    Long-term debt, current portion, net                          8,410                                 -

    Deferred revenue, net                                        87,516                            53,656
                                                                 ------                            ------

    Total current liabilities                                   180,912                           124,630

    Long-term, deferred revenue                                  17,051                            17,975

    Long-term deferred tax liabilities                           51,592                            21,822

    Other long-term liabilities                                   8,210                            11,932

    Long-term debt, net                                         245,731                                 -
                                                                -------                               ---

    Total liabilities                                           503,496                           176,359

    Stockholders' equity:

    Total stockholders' equity                                  431,607                           402,388

    Total liabilities and stockholders'
     equity                                                                $935,103                       $578,747
                                                                           ========                       ========


                                                  Omnicell, Inc.

                                 Condensed Consolidated Statements of Cash Flows

                                            (Unaudited, in thousands)


                                                          Years Ended

                                                    2016                     2015
                                                    ----                     ----

    Operating Activities

    Net income                                                  $603                        $30,760

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

    Depreciation
     and
     amortization                                 58,362                             25,639

    Loss on
     disposal of
     fixed
     assets                                           35                                238

    Gain on
     business
     combination                                       -                           (3,443)

    Gain related
     to
     contingent
     liability                                     (600)                                 -

    Share-based
     compensation
     expense                                      19,500                             14,921

    Income tax
     benefits
     from
     employee
     stock plans                                   1,702                              4,535

    Excess tax
     benefits
     from
     employee
     stock plans                                 (1,963)                           (4,724)

    Deferred
     income
     taxes                                      (10,882)                           (1,092)

    Amortization
     of debt
     financing
     fees                                          1,590                                  -

    Changes in operating assets
     and liabilities:

     Accounts
      receivable                                   8,047                           (17,941)

     Inventories                                 (3,362)                          (10,032)

     Prepaid
      expenses                                   (4,321)                             4,049

     Other
      current
      assets                                     (1,093)                               638

     Investment
      in sales-
      type leases                                (9,639)                           (4,661)

     Other long-
      term assets                                  2,043                                496

     Accounts
      payable                                    (4,963)                           (2,841)

     Accrued
      compensation                               (2,052)                           (2,032)

     Accrued
      liabilities                                (3,287)                             5,456

     Deferred
      revenue                                      4,480                            (5,521)

     Other long-
      term
      liabilities                                (6,263)                             (683)
                                                  ------                               ----

    Net cash
     provided by
     operating
     activities                                   47,937                             33,762
                                                  ------                             ------

    Investing Activities

    Purchase of
     intangible
     assets,
     intellectual
     property
     and patents                                 (1,372)                             (415)

    Software
     development
     for
     external
     use                                        (14,348)                          (12,132)

    Purchases of
     property
     and
     equipment                                  (13,445)                           (7,542)

    Business
     acquisitions,
     net of cash
     acquired                                  (312,158)                          (25,507)
                                                --------                            -------

    Net cash
     used in
     investing
     activities                                (341,323)                          (45,596)
                                                --------                            -------

    Financing Activities

    Proceeds
     from debt,
     net                                         287,051                                  -

    Repayment of
     debt and
     revolving
     credit
     facility                                   (34,500)                                 -

    Payment for
     contingent
     consideration                               (3,000)                                 -

    Proceeds
     from
     issuances
     under
     stock-
     based
     compensation
     plans                                        17,691                             17,091

    Employees'
     taxes paid
     related to
     restricted
     stock units                                 (3,490)                           (3,627)

    Excess tax
     benefits
     from
     employee
     stock plans                                   1,963                              4,724

    Common stock
     repurchases                                       -                          (50,021)

    Net cash
     provided by
     (used in)
     financing
     activities                                  265,715                           (31,833)
                                                 -------                            -------

    Effect of
     exchange
     rate
     changes on
     cash and
     cash
     equivalents                                    (58)                               (4)
                                                     ---                                ---

    Net decrease
     in cash and
     cash
     equivalents                                (27,729)                          (43,671)

    Cash and
     cash
     equivalents
     at
     beginning
     of period                                    82,217                            125,888


    Cash and
     cash
     equivalents
     at end of
     period                                                  $54,488                        $82,217
                                                             =======                        =======


                                                                                                                                                          Omnicell, Inc.

                                                                                                                                                Reconciliation of GAAP to Non-GAAP

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


                                                                                                                                    Three Months Ended                                                          Twelve Months Ended

                                                                                                        December 31,                   September 30,                 December 31,                December 31,                 December 31,
                                                                                                                  2016                           2016                          2015                         2016                          2015
                                                                                                                  ----                           ----                          ----                         ----                          ----


    Reconciliation of GAAP revenue to non-GAAP revenue:

    GAAP revenue                                                                                                            $171,974                                                   $176,737                                                  $130,316                   $692,623              $484,559

                                                                                                       Acquisition accounting impact
                                                                                                       related to deferred revenue                       2,663                                       2,663                                          -          10,652                          -
                                                                                                      ----------------

    Non-GAAP revenue                                                                                                        $174,637                                                   $179,400                                                  $130,316                   $703,275              $484,559
                                                                                                                            ========                                                   ========                                                  ========                   ========              ========


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

    GAAP gross profit                                                                                                        $74,329                                                    $81,508                                                   $65,080                   $313,800              $247,930

    GAAP gross margin                                                                                            43.2%                                       46.1%                                      49.9%                                     45.3%           51.2%

                                                                                                      Share-based compensation expense                     776                                         628                                        481            2,596                      2,111

                                                                                                      Amortization of acquired intangibles               5,266                                       5,199                                        547           20,890                      2,016

                                                                                                       Acquisition accounting impact
                                                                                                       related to deferred revenue                       2,663                                       2,663                                          -          10,652                          -

                                                                                                      Inventory fair value adjustments                     921                                         920                                          -           3,682                          -

                                                                                                      Acquisition related expenses                           5                                          44                                          -             277                          -
                                                                                                      ----------------

    Non-GAAP gross profit                                                                                                    $83,960                                                    $90,962                                                   $66,108                   $351,897              $252,057
                                                                                                                             =======                                                    =======                                                   =======                   ========              ========

    Non-GAAP gross margin                                                                                        48.1%                                       50.7%                                      50.7%                                     50.0%           52.0%


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

    GAAP operating expenses                                                                                                  $74,510                                                    $76,580                                                   $53,110                   $307,319              $199,298

    GAAP operating expenses % to
     total revenue                                                                                               43.3%                                       43.3%                                      40.8%                                     44.4%           41.1%

                                                                                                      Share-based compensation expense                 (4,663)                                    (4,049)                                   (3,173)        (16,904)                  (12,810)

                                                                                                      Amortization of acquired intangibles             (3,752)                                    (3,714)                                   (1,354)        (15,251)                   (4,904)

                                                                                                      Acquisition related expenses                       (829)                                      (342)                                   (2,898)         (5,753)                   (2,898)

                                                                                                      Gain on business combination                           -                                          -                                         -               -                     3,443

    Non-GAAP operating expenses                                                                                              $65,266                                                    $68,475                                                   $45,685                   $269,411              $182,129
                                                                                                                             =======                                                    =======                                                   =======                   ========              ========

    Non-GAAP operating expenses %
     to total revenue                                                                                            37.4%                                       38.2%                                      35.1%                                     38.3%           37.6%



                                                                                                                                    Three Months Ended                                                        Twelve Months Ended

                                                                                                        December 31,                   September 30,                 December 31,                December 31,                 December 31,
                                                                                                                  2016                           2016                          2015                                                      2015
                                                                                                                                                                                                       2016
                                                                                                                                                                                                                                       ---

    Reconciliation of GAAP income (loss) from operations to non-GAAP income from operations:

    GAAP income (loss) from
     operations                                                                                                               $(181)                                                    $4,928                                                   $11,970                     $6,481               $48,632

    GAAP operating income % to total
     revenue                                                                                                    (0.1)%                                        2.8%                                       9.2%                                      0.9%           10.0%

                                                                                                      Share-based compensation expense                   5,438                                       4,677                                      3,654           19,500                     14,921

                                                                                                      Amortization of acquired intangibles               9,017                                       8,913                                      1,901           36,141                      6,920

                                                                                                       Acquisition accounting impact
                                                                                                       related to deferred revenue                       2,663                                       2,663                                          -          10,652                          -

                                                                                                      Inventory fair value adjustments                     921                                         920                                          -           3,682                          -

                                                                                                      Acquisition related expenses                         834                                         386                                      2,898            6,029                      2,898

                                                                                                      Gain on business combination                           -                                          -                                         -               -                   (3,443)
                                                                                                      ----------------

    Non-GAAP income from operations                                                                                          $18,692                                                    $22,487                                                   $20,423                    $82,485               $69,928
                                                                                                                             =======                                                    =======                                                   =======                    =======               =======

    Non-GAAP operating income % to
     total Non-GAAP revenue                                                                                      10.7%                                       12.5%                                      15.7%                                     11.7%           14.4%


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

    GAAP net income                                                                                                             $157                                                     $1,983                                                    $7,655                       $603               $30,760

                                                                                                      Share-based compensation expense                   5,438                                       4,677                                      3,654           19,500                     14,921

                                                                                                      Amortization of acquired intangibles               9,017                                       8,913                                      1,901           36,141                      6,920

                                                                                                       Acquisition accounting impact
                                                                                                       related to deferred revenue                       2,663                                       2,663                                          -          10,652                          -

                                                                                                      Inventory fair value adjustments                     921                                         920                                          -           3,682                          -

                                                                                                      Acquisition related expenses                         632                                         783                                      2,898            7,019                      2,898

                                                                                                      Gain on business combination                           -                                          -                                         -               -                   (3,443)

                                                                                                       Tax effect of the adjustments
                                                                                                       above(a)                                        (5,031)                                    (5,047)                                   (1,665)        (21,850)                   (3,368)

    Non-GAAP net income                                                                                                      $13,797                                                    $14,892                                                   $14,443                    $55,747               $48,688
                                                                                                                             =======                                                    =======                                                   =======                    =======               =======


    Reconciliation of GAAP net income per share - diluted to non-GAAP net income per share - diluted:

    Shares - diluted GAAP                                                                                       37,256                                       37,079                                      36,172                                     36,864           36,718


    Shares - diluted Non-GAAP                                                                                   37,256                                       37,079                                      36,172                                     36,864           36,718
                                                                                                                ------                                       ------                                      ------                                     ------           ------


    GAAP net income per share -
     diluted                                                                                                         $             -                                                     $0.05                                                     $0.21                      $0.02                 $0.84

                                                                                                      Share-based compensation expense                    0.15                                        0.13                                       0.10             0.53                       0.41

                                                                                                      Amortization of acquired intangibles                0.24                                        0.24                                       0.05             0.98                       0.18

                                                                                                       Acquisition accounting impact
                                                                                                       related to deferred revenue                        0.07                                        0.07                                          -            0.29                          -

                                                                                                      Inventory fair value adjustments                    0.02                                        0.02                                          -            0.10                          -

                                                                                                      Acquisition related expenses                        0.02                                        0.02                                       0.08             0.19                       0.08

                                                                                                      Gain on business combination                           -                                          -                                         -               -                    (0.09)

                                                                                                       Tax effect of the adjustments
                                                                                                       above(a)                                         (0.13)                                     (0.13)                                    (0.04)          (0.60)                    (0.09)
                                                                                                      ----------------

    Non-GAAP net income per share -
      diluted                                                                                                                  $0.37                                                      $0.40                                                     $0.40                      $1.51                 $1.33
                                                                                                                               =====                                                      =====                                                     =====                      =====                 =====


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

    GAAP net income                                                                                                             $157                                                     $1,983                                                    $7,655                       $603               $30,760

                                                                                                      Share-based compensation expense                   5,438                                       4,677                                      3,654           19,500                     14,921

                                                                                                      Interest (income) and expense, net                   998                                       1,523                                         89            5,616                        410

                                                                                                       Depreciation and amortization
                                                                                                       expense                                          14,457                                      14,702                                      7,182           58,362                     25,639

                                                                                                       Acquisition accounting impact
                                                                                                       related to deferred revenue                       2,663                                       2,663                                          -          10,652                          -

                                                                                                      Inventory fair value adjustments                     921                                         920                                          -           3,682                          -

                                                                                                      Acquisition related expenses                         632                                         783                                      2,898            7,019                      2,898

                                                                                                      Gain on business combination                           -                                          -                                         -               -                   (3,443)

                                                                                                      Income tax expense (benefit)                     (1,994)                                        224                                      3,562          (2,551)                    15,484


    Non-GAAP Adjusted EBITDA (b)                                                                                             $23,272                                                    $27,475                                                   $25,040                   $102,883               $86,669
                                                                                                                             =======                                                    =======                                                   =======                   ========               =======





    (a)   Tax effects calculated for all adjustments
     except share-based compensation expense, using the
     tax rate of 38%.

    (b)   Defined as earnings before interest income and
     expense, taxes, depreciation and amortization, share-
     based compensation expense, as well as excluding
     certain non-GAAP adjustments.


                                                                                                                                           Omnicell, Inc.

                                                                                                                                       Segmented Information

                                                                                                                         (Unaudited, in thousands, except for percentages)


                                                     Three Months Ended December 31, 2016                                           Three Months Ended December 31, 2015

                                     Automation             Medication                    Total             Automation                  Medication                    Total
                                         and                 Adherence                                          and
                                      Analytics                                                                                          Adherence
                                                                                                          Analytics
                                                                                                                                                                          ---


    Revenues                                     $143,583                                          $28,391                                                $171,974                                  $105,874              $24,442 $130,316

    Cost of revenues                      77,566                                20,079                            97,645                                     48,020                       17,216                   65,236
                                          ------                                ------                            ------                                     ------                       ------                   ------

    Gross profit                          66,017                                 8,312                            74,329                                     57,854                        7,226                   65,080
                                          ------                                 -----                            ------                                     ------                        -----                   ------

    Gross margin %                       46.0%                                29.3%                            43.2%                                     54.6%                       29.6%                   49.9%


    Operating expenses                    47,402                                 7,325                            54,727                                     28,889                        5,937                   34,826
                                          ------                                 -----                            ------                                     ------                        -----                   ------

    Income from segment
     operations                                   $18,615                                             $987                                                 $19,602                                   $28,965               $1,289  $30,254
                                                  -------                                             ----                                                 -------                                   -------               ------  -------

    Operating margin %                   13.0%                                 3.5%                            11.4%                                     27.4%                        5.3%                   23.2%


    Corporate costs                                                                       19,783                                                                              18,284
                                                                                          ------                                                                              ------

       Income (loss) from operations                                                             $(181)                                                                                         $11,970
                                                                                                  =====                                                                                          =======



                                                                                                                               Omnicell, Inc.

                                                                                                                           Segmented Information

                                                                                                             (Unaudited, in thousands, except for percentages)


                                                      Year Ended December 31, 2016                                            Year Ended December 31, 2015

                                     Automation             Medication                    Total             Automation                  Medication                    Total
                                         and                 Adherence                                          and
                                      Analytics                                                                                          Adherence
                                                                                                          Analytics
                                                                                                                                                                          ---


    Revenues                                     $593,626                                          $98,997                                                $692,623                                  $390,321              $94,238 $484,559

    Cost of revenues                     310,967                                67,856                           378,823                                    171,943                       64,686                  236,629

    Gross profit                         282,659                                31,141                           313,800                                    218,378                       29,552                  247,930
                                         -------                                ------                           -------                                    -------                       ------                  -------

    Gross margin %                       47.6%                                31.5%                            45.3%                                     55.9%                       31.4%                   51.2%


    Operating expenses                   198,511                                24,843                           223,354                                    114,084                       24,258                  138,342
                                         -------                                ------                           -------                                    -------                       ------                  -------

    Income from segment
     operations                                   $84,148                                           $6,298                                                 $90,446                                  $104,294               $5,294 $109,588
                                                  =======                                           ======                                                 =======                                  ========               ====== ========

    Operating margin %                   14.2%                                 6.4%                            13.1%                                     26.7%                        5.6%                   22.6%


    Corporate costs                                                                       83,965                                                                              60,956
                                                                                          ------                                                                              ------

       Income from operations                                                                    $6,481                                                                                          $48,632
                                                                                                 ======                                                                                          =======


                                                                                                                                        Omnicell, Inc.

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

                                                                                                                       (Unaudited, in thousands, except for percentages)


                                                                                        Three Months Ended December 31, 2016

                                                        Automation and                                        Medication                                                        Total
                                                        Analytics                                       Adherence

                                           Amount               % of          % of                Amount                       % of                  % of                    Amount              % of                 % of
                                                              GAAP          Non-                                             GAAP                  Non-                                        GAAP                 Non-
                                                            Revenue         GAAP                                           Revenue                  GAAP
                                                                             Revenue                                                                  Revenue                                      Revenue                GAAP
                                                                                                                                                                                                                   Revenue
                                                                                                                                                                                                                     -------

    Revenues                                       $143,583                                                                     $28,391                                                                      $171,974

    Acquisition accounting
     impact related to
     deferred revenue                        2,663                     1.9%                       1.8%                                -                                        -   %                           -   %                      2,663          1.5%         1.5%

    Non-GAAP Revenues                              $146,246                                                                     $28,391                                                                      $174,637
                                                   ========                                                                     =======                                                                      ========


    GAAP Gross profit                               $66,017                     46.0%                     45.1%                                         $8,312                          29.3%                   29.3%                           $74,329         43.2%        42.6%

    Stock-based
     compensation expense                      668                     0.5%                       0.5%                              108                              0.4%                     0.4%                               776                0.5%         0.4%

    Amortization expense of
     acquired intangible
     assets                                  4,820                     3.4%                       3.3%                              446                              1.6%                     1.6%                             5,266                3.1%         3.0%

    Acquisition accounting
     impact related to
     deferred revenue                        2,663                     1.9%                       1.8%                                -                                        -   %                           -   %                      2,663          1.5%         1.5%

    Inventory fair value
     adjustments                               921                     0.6%                       0.6%                                -                                        -   %                           -   %                        921          0.5%         0.5%

    Acquisitions related
     expenses                                    5                                -   %                     -   %                               -                                      -   %                   -   %                          5               -  %         -  %
                                               ---                                                                                            ---

    Non-GAAP Gross profit                           $75,094                     52.3%                     51.3%                                         $8,866                          31.2%                   31.2%                           $83,960         48.8%        48.1%
                                                    =======                                                                                             ======                                                                                  =======


    GAAP Operating income                           $18,615                     13.0%                     12.7%                                           $988                           3.5%                    3.5%                           $19,603         11.4%        11.2%

    Stock-based
     compensation expense                    2,672                     1.9%                       1.8%                              270                             0.95%                     1.0%                             2,942                1.7%         1.7%

    Amortization expense of
     acquired intangible
     assets                                  7,494                     5.2%                       5.1%                            1,523                              5.4%                     5.4%                             9,017                5.2%         5.2%

    Acquisition accounting
     impact related to
     deferred revenue                        2,663                     1.9%                       1.8%                                -                                        -   %                           -   %                      2,663          1.5%         1.5%

    Inventory fair value
     adjustments                               921                     0.6%                       0.6%                                -                                        -   %                           -   %                        921          0.5%         0.5%

    Acquisitions related
     expenses                                   23                                -   %                     -   %                               -                                      -   %                   -   %                         23               -  %         -  %


    Non-GAAP Operating
     income                                         $32,388                     22.6%                     22.1%                                         $2,781                           9.8%                    9.8%                           $35,169         20.5%        20.1%
                                                    =======                                                                                             ======                                                                                  =======


    GAAP Corporate costs                                                                                                                                                        $19,784                    11.5%                          11.3%

    Less: Stock-based compensation expense                                                                                                                              2,496                       1.5%                             1.4%

    Less: Acquisition-related expenses                                                                                                                                    811                       0.5%                             0.5%
                                                                                                                                                                          ---

    Non-GAAP Corporate costs                                                                                                                                                    $16,477                     9.6%                           9.4%


    Non-GAAP Income from operations                                                                                                                                             $18,692                    10.9%                          10.7%
                                                                                                                                                                                =======


                                                             Three Months Ended December 31, 2015

                                     Automation and                           Medication                                  Total
                                       Analytics                               Adherence

                              Amount                  % of           Amount                   % of            Amount               % of
                                                      GAAP                                    GAAP                                 GAAP
                                                    Revenue*                                Revenue*                             Revenue*
                                                    -------                                 -------                              -------

    Revenues                             $105,874                                                     $24,442                                          $130,316


    GAAP Gross profit          57,854                         54.6%                             7,226                      29.6%                65,080             49.9%

    Stock-based compensation
     expense                      411                          0.4%                                70                       0.3%                   481              0.4%

    Amortization expense of
     acquired intangible
     assets                       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%

    Stock-based compensation
     expense                    1,472                          1.3%                               196                       0.8%                 1,668              1.3%

    Amortization expense of
     acquired intangible
     assets                       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%
                                                                                                                       =======



    * For the three months ended
     December 31, 2015, there
     were no differences between
     GAAP and non-GAAP revenues.

OMCL-E

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/omnicell-reports-results-for-fiscal-year-and-fourth-quarter-2016-300408221.html

SOURCE Omnicell, Inc.