Omnicell Achieves Record Revenue in the Second Quarter 2017

MOUNTAIN VIEW, Calif., July 27, 2017 /PRNewswire/ -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its second quarter ended June 30, 2017.

GAAP results: Revenue for the second quarter of 2017 was $180.9 million, up $30.3 million, or 20.1% from the first quarter of 2017, and up $8.0 million, or 4.6% from the second quarter of 2016. Revenue for the six months ended June 30, 2017 was $331.4 million, down $12.5 million, or 3.63% from the six months ended June 30, 2016.

Second quarter 2017 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $0.8 million, or $0.02 per diluted share. This compares to GAAP net loss of $10.8 million, or $0.29 per diluted share, for the first quarter of 2017, and GAAP net loss of $1.2 million, or $0.03 per diluted share, for the second quarter of 2016.

GAAP net loss for the six months ended June 30, 2017 was $9.9 million, or $0.27 per diluted share. GAAP net loss was $1.5 million, or $0.04 per diluted share, for the six months ended June 30, 2016.

Non-GAAP results: Non-GAAP revenue for the second quarter of 2017 was $181.2 million, up $30.3 million, or 20.1% from the first quarter of 2017, and up $5.6 million, or 3.2% from the second quarter of 2016. Non-GAAP revenue for the six months ended June 30, 2017 was $332.1 million, down $17.2 million, or 4.9% from the six months ended June 30, 2016.

Non-GAAP net income for the second quarter of 2017 was $11.7 million, or $0.31 per diluted share. This compares to non-GAAP net income of $2.1 million, or $0.06 per diluted share, first quarter of 2017 and $13.9 million, or $0.38 per diluted share, for the second quarter of 2016.

Non-GAAP net income for the six months ended June 30, 2017 was $13.8 million, or $0.36 per diluted share. This compares to non-GAAP net income of $26.7 million, or $0.73 per diluted share for the six months ended June 30, 2016.

Non-GAAP net income for each period presented excludes, when applicable, the effect of stock-based compensation expense, amortization expense of acquired intangible assets, acquisition related expenses, fair value adjustments related to business acquisitions, severance and integration-related expenses, and amortization of debt issuance cost.

"Omnicell completed a strong second quarter marked by record revenues and earnings results ahead of expectations," 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."

"I am particularly pleased by the momentum and broad adoption of our recent innovations, including the XT series," he added. "I believe we are positioned well for continued success in the future."

2017 Guidance:

For the third quarter of 2017, the Company expects both GAAP and non-GAAP revenue to be between $188 million and $194 million, and non-GAAP earnings to be between $0.38 and $0.45 per share.

For the year 2017, the Company expects product bookings to be between $570 million and $590 million. The Company expects both GAAP and non-GAAP revenue to be between $720 million and $740 million, and non-GAAP earnings to be between $1.22 and $1.34 per share.

Omnicell Conference Call Information

Omnicell will hold a conference call today, Thursday, July 27, 2017 at 1:30 p.m. PT to discuss second quarter financial results. The conference call can be monitored by dialing 1-800-696-5518 within the U.S. or 1-706-758-4883 for all other locations. The Conference ID # is 36566159. Internet users can access the conference call at http://ir.omnicell.com/events.cfm. A replay of the call will be available today at approximately 4:30 p.m. PT and will be available until 11:59 p.m. PT on August 25, 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 36566159.

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, and projected bookings, profit and revenue growth. 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, 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. 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) Share-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) Amortization of acquired intangible assets. 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 recent acquisitions, 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) Severance and other related expenses. We excluded from our non-GAAP results the expenses which are related to the restructuring and integrations related events. 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 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.

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.

With respect to the Company's expectations under "Guidance" above, and regarding certain projections discussed on today's teleconference, reconciliation of non-GAAP earnings ranges per share guidance for the remainder of 2017, to the closest corresponding GAAP measures is not available without unreasonable efforts as we are unable to predict with reasonable certainty the matters we would allocate to "certain items," including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, complex, depend on various factors, have low visibility and could have a material impact on GAAP EPS in future periods.


                                                                                                             Omnicell, Inc.

                                                                                             Condensed Consolidated Statements of Operations

                                                                                            (Unaudited, in thousands, except per share data)


                                                                Three Months Ended                                                           Six Months Ended

                                         June 30, 2017           March 31, 2017               June 30, 2016               June 30, 2017             June 30, 2016
                                         -------------           --------------               -------------               -------------             -------------

    Revenues:

    Product                                            $128,056                                                  $98,930                                            $130,674                $226,986    $258,569

    Services and other
     revenues                                   52,829                                51,624                                       42,233                             104,453      85,342
                                                ------                                ------                                       ------                             -------      ------

       Total revenues                          180,885                               150,554                                      172,907                             331,439     343,911
                                               -------                               -------                                      -------                             -------     -------

    Cost of revenues:

    Cost of product revenues                    81,738                                63,588                                       76,306                             145,326     148,224

    Cost of services and
     other revenues                             21,172                                22,774                                       18,584                              43,946      37,725
                                                ------                                ------                                       ------                              ------      ------

       Total cost of revenues                  102,910                                86,362                                       94,890                             189,272     185,949
                                               -------                                ------                                       ------                             -------     -------

    Gross profit                                77,975                                64,192                                       78,017                             142,167     157,962

    Operating expenses:

    Research and development                    16,911                                16,803                                       13,794                              33,714      27,632

    Selling, general and
     administrative                             63,468                                64,625                                       64,341                             128,093     128,596

       Total operating expenses                 80,379                                81,428                                       78,135                             161,807     156,228
                                                ------                                ------                                       ------                             -------     -------

    Income (loss) from
     operations                                (2,404)                             (17,236)                                       (118)                           (19,640)      1,734

    Interest and other
     income (expense), net                         196                               (2,456)                                     (1,881)                            (2,260)    (4,052)
                                                   ---                                ------                                       ------                              ------      ------

    Loss before provision
     for income taxes                          (2,208)                             (19,692)                                     (1,999)                           (21,900)    (2,318)

    Benefit for income taxes                   (3,045)                              (8,938)                                       (840)                           (11,983)      (781)

    Net income (loss)                                      $837                                                $(10,754)                                           $(1,159)               $(9,917)   $(1,537)
                                                           ====                                                 ========                                             =======                 =======     =======

    Net income (loss) per share:

    Basic                                                 $0.02                                                  $(0.29)                                            $(0.03)                $(0.27)    $(0.04)

    Diluted                                               $0.02                                                  $(0.29)                                            $(0.03)                $(0.27)    $(0.04)

    Weighted average shares outstanding:

    Basic                                       37,250                                36,840                                       35,987                              37,046      35,864

    Diluted                                     38,370                                36,840                                       35,987                              37,046      35,864


                                                          Omnicell, Inc.

                                               Condensed Consolidated Balance Sheets

                                                     (Unaudited, in thousands)


                                                                  June 30, 2017                 December 31,
                                                                                                   2016
                                                                  -------------             -------------


                                                            ASSETS

    Current assets:

    Cash and cash equivalents                                                       $26,936                     $54,488

    Accounts receivable, net                                            151,010                        150,303

    Inventories                                                          81,523                         69,297

    Prepaid expenses                                                     26,001                         28,646

    Other current assets                                                 10,511                         12,674
                                                                         ------                         ------

    Total current assets                                                295,981                        315,408

    Property and equipment, net                                          40,713                         42,011

    Long-term investment in sales-type
     leases, net                                                         17,424                         20,585

    Goodwill                                                            332,996                        327,724

    Intangible assets, net                                              180,206                        190,283

    Long-term deferred tax assets                                         5,627                          4,041

    Other long-term assets                                               36,954                         35,051

    Total assets                                                                   $909,901                    $935,103
                                                                                   ========                    ========


                                             LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

    Accounts payable                                                                $53,287                     $27,069

    Accrued compensation                                                 31,251                         26,722

    Accrued liabilities                                                  30,894                         31,195

    Long-term debt, current portion, net                                 10,910                          8,410

    Deferred revenue, net                                                85,370                         87,516
                                                                         ------                         ------

    Total current liabilities                                           211,712                        180,912

    Long-term, deferred revenue                                          16,332                         17,051

    Long-term deferred tax liabilities                                   38,950                         51,592

    Other long-term liabilities                                           9,879                          8,210

    Long-term debt, net                                                 183,526                        245,731
                                                                        -------                        -------

    Total liabilities                                                   460,399                        503,496

    Total stockholders' equity                                          449,502                        431,607

    Total liabilities and stockholders' equity                                     $909,901                    $935,103
                                                                                   ========                    ========


                                                 Omnicell, Inc.

                                Condensed Consolidated Statements of Cash Flows

                                           (Unaudited, in thousands)


                                                 Six months ended June 30,

                                                   2017                    2016
                                                   ----                    ----

    Operating Activities

    Net loss                                              $(9,917)                         $(1,537)

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

     Depreciation
     and
     amortization                                25,942                             29,197

    (Gain)
     loss on
     disposal
     of fixed
     assets                                          79                                  1

    Share-
     based
     compensation
     expense                                     11,056                              9,386

    Income tax
     benefits
     from
     employee
     stock
     plans                                           11                                681

    Deferred
     income
     taxes                                     (12,646)                           (3,877)

     Amortization
     of debt
     financing
     fees                                           795                                795

    Changes in operating assets
     and liabilities:

       Accounts
        receivable                                (770)                           (7,775)

       Inventories                             (12,226)                           (6,919)

       Prepaid
        expenses                                  2,645                            (4,852)

       Other
        current
        assets                                      202                                 78

       Investment
        in sales-
        type
        leases                                    5,482                            (6,558)

       Other
        long-
        term
        assets                                     (34)                             1,019

       Accounts
        payable                                  23,357                              6,736

       Accrued
        compensation                              4,529                                210

       Accrued
        liabilities                               2,165                            (2,195)

       Deferred
        revenue                                 (2,865)                             4,895

       Other
        long-
        term
        liabilities                               1,119                            (2,398)

       Net cash
        provided
        by
        operating
        activities                               38,924                             16,887
                                                 ------                             ------

    Investing Activities

    Purchases
     of
     intangible
     assets,
     intellectual
     property
     and
     patents                                      (160)                           (1,185)

    Software
     development
     for
     external
     use                                        (6,748)                           (6,681)

    Purchases
     of
     property
     and
     equipment                                  (6,493)                           (5,938)

    Business
     acquisition,
     net of
     cash
     acquired                                   (4,446)                         (271,458)
                                                 ------                           --------

    Net cash
     used in
     investing
     activities                                (17,847)                         (285,262)
                                                -------                           --------

    Financing Activities

    Proceeds
     from debt                                   10,000                            247,051

    Repayment
     of debt
     and
     revolving
     credit
     facility                                  (70,500)                          (22,500)

    Payment
     for
     contingent
     consideration                                    -                           (3,000)

    Proceeds
     from
     issuances
     under
     stock-
     based
     compensation
     plans                                       15,783                              8,639

    Employees'
     taxes paid
     related to
     restricted
     stock
     units                                      (2,638)                           (1,563)

    Net cash
     provided
     by (used
     in)
     financing
     activities                                (47,355)                           228,627

    Effect of
     exchange
     rate
     changes
     on cash
     and cash
     equivalents                                (1,274)                           (1,440)
                                                 ------                             ------

    Net
     decrease
     in cash
     and cash
     equivalents                               (27,552)                          (41,188)

    Cash and
     cash
     equivalents
     at
     beginning
     of period                                   54,488                             82,217

    Cash and
     cash
     equivalents
     at end of
     period                                                $26,936                           $41,029
                                                           =======                           =======


                                                                                                                                       Omnicell, Inc.

                                                                                                                             Reconciliation of GAAP to Non-GAAP

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


                                                                                   Three Months Ended                                                        Six Months Ended

                                                         June 30,                    March 31,                 June 30,                    June 30,                    June 30,
                                                                2017                        2017                       2016                        2017                         2016
                                                                ----                        ----                       ----                        ----                         ----


    Reconciliation of GAAP revenue to non-GAAP revenue:

    GAAP revenue                                                         $180,885                                              $150,554                                                $172,907             $331,439             $343,911

                                                      Acquisition accounting impact
                                                      related to deferred revenue                     313                                     313                                     2,663            626                 5,326
                                                     ---------------

    Non-GAAP revenue                                                     $181,198                                              $150,867                                                $175,570             $332,065             $349,237
                                                                         ========                                              ========                                                ========             ========             ========


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

    GAAP gross profit                                                     $77,975                                               $64,192                                                 $78,017             $142,167             $157,962

    GAAP gross margin                                          43.1%                                    42.6%                                  45.1%                                    42.9%         45.9%

                                                     Share-based compensation expense                 864                                     982                                       644          1,846                 1,193

                                                      Amortization of acquired
                                                      intangibles                                   2,848                                   2,837                                     5,214          5,685                10,425

                                                      Acquisition accounting impact
                                                      related to deferred revenue                     313                                     313                                     2,663            626                 5,326

                                                     Inventory fair value adjustments                   -                                      -                                      920              -                1,841

                                                     Acquisitions related expenses                      -                                      -                                       28              -                   28

                                                     Severance and other expenses*                      -                                  1,697                                       199          1,697                   199
                                                     ===============

    Non-GAAP gross profit                                                 $82,000                                               $70,021                                                 $87,685             $152,021             $176,974
                                                                          =======                                               =======                                                 =======             ========             ========

    Non-GAAP gross margin                                      45.3%                                    46.4%                                  49.9%                                    45.8%         50.7%


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

    GAAP operating expenses                                               $80,379                                               $81,428                                                 $78,135             $161,807             $156,228

    GAAP operating expenses % to
     total revenue                                             44.4%                                    54.1%                                  45.2%                                    48.8%         45.4%

                                                     Share-based compensation expense             (4,681)                                (4,529)                                  (4,851)       (9,210)              (8,193)

                                                      Amortization of acquired
                                                      intangibles                                 (3,626)                                (3,653)                                  (3,838)       (7,279)              (7,786)

                                                     Acquisitions related expenses                      -                                  (126)                                    (223)         (126)              (2,572)

                                                     Severance and other expenses*                  (970)                                (2,332)                                  (1,504)       (3,302)              (1,504)

    Non-GAAP operating expenses                                           $71,102                                               $70,788                                                 $67,719             $141,890             $136,173
                                                                          =======                                               =======                                                 =======             ========             ========

    Non-GAAP operating expenses %
     to total revenue                                          39.2%                                    46.9%                                  38.6%                                    42.7%         39.0%


              * Other expenses include
               relocation charge of $102,
               depreciation adjustment related
               to purchase price allocation
               from acquisition of $243,
               integration consulting of $126
               and restructuring rent expense
               of $485 for the three months
               ended June 30, 2017. Other
               expenses include relocation
               charge of $322 and depreciation
               adjustment related to purchase
               price allocation from
               acquisition of $508 for the six
               months ended June 30, 2017.



                                                                                                                                     Three Months Ended                                              Six months ended

                                                                                                                June 30,                   March 31,                 June 30,                  June 30,               June 30,
                                                                                                                       2017                       2017                       2016                      2017                    2016
                                                                                                                       ----                       ----                       ----                      ----                    ----

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

    GAAP income (loss) from
     operations                                                                                                                $(2,404)                                           $(17,236)                                          $(118)                    $(19,640)                  $1,734

    GAAP operating income (loss) %
     to total revenue                                                                                                (1.3)%                                 (11.4)%                               (0.1)%                             (5.9)%            0.5%

                                                                                                             Share-based compensation expense             5,545                                 5,511                               5,495           11,056                         9,386

                                                                                                              Amortization of acquired
                                                                                                              intangibles                                 6,474                                 6,490                               9,052           12,964                        18,211

                                                                                                              Acquisition accounting impact
                                                                                                              related to deferred revenue                   313                                   313                               2,663              626                         5,326

                                                                                                             Inventory fair value adjustments                 -                                    -                                920                -                        1,841

                                                                                                             Acquisitions related expenses                    -                                  126                                 251              126                         2,600

                                                                                                             Severance and other expenses                   970                                 4,029                               1,703            4,999                         1,703

    Non-GAAP income (loss) from
     operations                                                                                                                 $10,898                                               $(767)                                         $19,966                       $10,131                  $40,801
                                                                                                                                =======                                                =====                                          =======                       =======                  =======

    Non-GAAP operating income
     (loss) % to total Non-GAAP
     revenue                                                                                                           6.0%                                  (0.5)%                                11.4%                               3.1%           11.7%


    Reconciliation of GAAP net income (loss) to non-GAAP net income:

    GAAP net income (loss)                                                                                                         $837                                            $(10,754)                                        $(1,159)                     $(9,917)                $(1,537)

                                                                                                             Share-based compensation expense             5,545                                 5,511                               5,495           11,056                         9,386

                                                                                                              Amortization of acquired
                                                                                                              intangibles                                 6,474                                 6,490                               9,052           12,964                        18,211

                                                                                                              Acquisition accounting impact
                                                                                                              related to deferred revenue                   313                                   313                               2,663              626                         5,326

                                                                                                             Inventory fair value adjustments                 -                                    -                                920                -                        1,841

                                                                                                             Acquisitions related expenses                  397                                   523                               1,046              920                         3,395

                                                                                                             Severance and other expenses                   970                                 4,029                               1,703            4,999                         1,703

                                                                                                              Tax effect of the adjustments
                                                                                                              above(a)                                  (2,817)                              (4,019)                            (5,846)         (6,836)                     (11,581)

    Non-GAAP net income                                                                                                         $11,719                                               $2,093                                          $13,874                       $13,812                  $26,744
                                                                                                                                =======                                               ======                                          =======                       =======                  =======


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

    Shares - diluted GAAP                                                                                            38,370                                   36,840                                35,987                              37,046           35,864
                                                                                                                     ------                                   ------                                ------                              ------           ------


    Shares - diluted Non-GAAP                                                                                        38,370                                   37,782                                36,649                              38,103           36,488
                                                                                                                     ------                                   ------                                ------                              ------           ------


    GAAP net income (loss) per
     share -diluted                                                                                                               $0.02                                              $(0.29)                                         $(0.03)                      $(0.27)                 $(0.04)

                                                                                                             Share-based compensation expense              0.14                                  0.15                                0.15             0.29                          0.26

                                                                                                              Amortization of acquired
                                                                                                              intangibles                                  0.17                                  0.17                                0.25             0.34                          0.50

                                                                                                              Acquisition accounting impact
                                                                                                              related to deferred revenue                  0.01                                  0.01                                0.07             0.02                          0.15

                                                                                                             Inventory fair value adjustments                 -                                    -                               0.03                -                         0.05

                                                                                                             Acquisitions related expenses                 0.01                                  0.01                                0.03             0.02                          0.09

                                                                                                             Severance and other expenses                  0.02                                  0.11                                0.05             0.14                          0.05

                                                                                                              Tax effect of the adjustments
                                                                                                              above(a)                                   (0.06)                               (0.10)                             (0.17)          (0.18)                       (0.33)
                                                                                                             --------------

    Non-GAAP net income per share
     - diluted                                                                                                                    $0.31                                                $0.06                                            $0.38                         $0.36                    $0.73
                                                                                                                                  =====                                                =====                                            =====                         =====                    =====


    Reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA(b):



    GAAP net income (loss)                                                                                                         $837                                            $(10,754)                                        $(1,159)                     $(9,917)                $(1,537)

                                                                                                             Share-based compensation expense             5,545                                 5,511                               5,495           11,056                         9,386

                                                                                                             Interest (income) and expense, net           1,311                                 1,432                               1,348            2,743                         3,095

                                                                                                              Depreciation and amortization
                                                                                                              expense                                    13,494                                12,448                              14,724           25,942                        29,197

                                                                                                              Acquisition accounting impact
                                                                                                              related to deferred revenue                   313                                   313                               2,663              626                         5,326

                                                                                                             Inventory fair value adjustments                 -                                    -                                920                -                        1,841

                                                                                                             Acquisitions related expenses                  397                                   523                               1,046              920                         3,395

                                                                                                             Severance expense                              728                                 3,765                               1,703            4,493                         1,703

                                                                                                             Income tax expense                         (3,045)                              (8,938)                              (840)        (11,983)                        (781)

    Non-GAAP Adjusted EBITDA                                                                                                    $19,580                                               $4,300                                          $25,900                       $23,880                  $51,625
                                                                                                                                =======                                               ======                                          =======                       =======                  =======


              (a) Tax effects calculated for all
               adjustments except share-based
               compensation expense, using an
               estimated annual effective tax
               rate of 35% for fiscal year 2017
               and 38% for fiscal year 2016.

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


                                                                                                                               Omnicell, Inc.

                                                                                                                            Segmented Information

                                                                                                              (Unaudited, in thousands, except for percentages)


                                           Three Months Ended June 30, 2017                                               Three Months Ended June 30, 2016

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


    Revenues                         $148,427                                          $32,458                                               $180,885                                   $148,660                    $24,247 $172,907

    Cost of revenues          80,716                                22,194                            102,910                                   78,366                        16,524                         94,890
                              ------                                ------

    Gross profit              67,711                                10,264                             77,975                                   70,294                         7,723                         78,017
                              ------                                ------                             ------                                   ------                         -----                         ------

    Gross margin %           45.6%                                31.6%                             43.1%                                   47.3%                        31.9%                         45.1%


    Operating
     expenses                 49,054                                10,099                             59,153                                   49,780                         5,771                         55,551

    Income from
     segment
     operations                       $18,657                                             $165                                                $18,822                                    $20,514                     $1,952  $22,466
                                      =======                                             ====                                                =======                                    =======                     ======  =======

    Operating margin
     %                        12.6%                                 0.5%                             10.4%                                   13.8%                  8.1%                         13.0%


    Corporate costs                                                         21,226                                                                                22,584
                                                                            ------                                                                                ------

    Loss from operations                                                           $(2,404)                                                                                          $(118)
                                                                                    =======                                                                                            =====


                                                                                                                                        Omnicell, Inc.

                                                                                                                                     Segmented Information

                                                                                                                       (Unaudited, in thousands, except for percentages)


                                                     Six Months Ended June 30, 2017                                                 Six Months Ended June 30, 2016

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


    Revenues                                  $272,598                                          $58,841                                               $331,439                                   $297,605              $46,306 $343,911

    Cost of revenues                  149,477                                39,795                            189,272                                  155,573                        30,376                  185,949
                                      -------                                ------

    Gross profit                      123,121                                19,046                            142,167                                  142,032                        15,930                  157,962
                                      -------                                ------                            -------                                  -------                        ------                  -------

    Gross margin %                    45.2%                                32.4%                             42.9%                                   47.7%                        34.4%                   45.9%


    Operating
     expenses                          99,801                                21,295                            121,096                                  101,985                        11,382                  113,367

    Income (loss)
     from segment
     operations                                $23,320                                         $(2,249)                                               $21,071                                    $40,047               $4,548  $44,595
                                               =======                                          =======                                                =======                                    =======               ======  =======

    Operating margin
     %                                  8.6%                               (3.8)%                              6.4%                                   13.5%                         9.8%                   13.0%


    Corporate costs                                                                 40,711                                                                                 42,861
                                                                                    ------                                                                                 ------

    Income (loss) from operations                                                          $(19,640)                                                                                          $1,734
                                                                                            ========                                                                                           ======


                                                                                                                                                         Omnicell, Inc.

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

                                                                                                                                        (Unaudited, in thousands, except for percentages)


                                                                             Three Months Ended June 30, 2017

                                                 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                          GAAP
                                                                                          Revenue                                                                                                       Revenue                                                                            Revenue
                                                                                                                                                                                                                                                                                             -------

    Revenues                                   $148,427                                                                                                               $32,458                                                                                             $180,885

    Acquisition accounting impact
     related to deferred revenue             -                           -%                         -%                                      313                                      1.0%                       1.0%                      313                               0.2%                       0.2%

    Non-GAAP Revenues                          $148,427                                                                                                               $32,771                                                                                             $181,198
                                               ========                                                                                                               =======                                                                                             ========


    GAAP Gross profit                           $67,711                              45.6%                                     45.6%                                  $10,264                                     31.6%                    31.3%                           $77,975                                     43.1% 43.0%

    Share-based compensation
     expense                               736                          0.5%                        0.5%                                       128                                      0.4%                       0.4%                      864                               0.5%                       0.5%

    Amortization expense of
     acquired intangible assets          2,228                          1.5%                        1.5%                                       620                                      1.9%                       1.9%                    2,848                               1.6%                       1.6%

    Acquisition accounting impact
     related to deferred revenue             -                           -%                         -%                                      313                                      1.0%                       1.0%                      313                               0.2%                       0.2%

    Non-GAAP Gross profit                       $70,675                              47.6%                                     47.6%                                  $11,325                                     34.9%                    34.6%                           $82,000                                     45.3% 45.3%
                                                =======                                                                                                               =======                                                                                              =======


    GAAP Operating income                       $18,657                              12.6%                                     12.6%                                     $165                                      0.5%                     0.5%                           $18,822                                     10.4% 10.4%

    Share-based compensation
     expense                             2,275                          1.5%                        1.5%                                       354                                      1.1%                       1.1%                    2,629                               1.5%                       1.5%

    Amortization expense of
     acquired intangible assets          4,545                          3.1%                        3.1%                                     1,929                                      5.9%                       5.9%                    6,474                               3.6%                       3.6%

    Acquisition accounting impact
     related to deferred revenue             -                           -%                         -%                                      313                                      1.0%                       1.0%                      313                               0.2%                       0.2%

    Severance and other expenses           610                          0.4%                        0.4%                                         -                                                   -%                 -%                            610                               0.3%                       0.3%
                                           ---                                                                                                 ---                                                                                                      ---

    Non-GAAP Operating income                   $26,087                              17.6%                                     17.6%                                   $2,761                                      8.5%                     8.4%                           $28,848                                     15.9% 15.9%
                                                =======                                                                                                                ======                                                                                              =======


    GAAP Corporate costs                                                                                                                                                                                                                       $21,226                              11.7%                      11.7%

    Share-based compensation expense                                                                                                                                                                                              (2,916)                           (1.6)%                      (1.6)%

    Acquisition-related expenses                                                                                                                                                                                                        0                                            -%                        -%

    Severance and other expenses                                                                                                                                                                                                    (360)                           (0.2)%                      (0.2)%
                                                                                                                                                                                                                                     ----

    Non-GAAP Corporate costs                                                                                                                                                                                                                   $17,950                               9.9%                       9.9%


    Non-GAAP Income from operations                                                                                                                                                                                                            $10,898                               6.0%                       6.0%
                                                                                                                                                                                                                                               =======


                                                                                                                                        Omnicell, Inc.

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

                                                                                                                      (Unaudited, in thousands, except for percentages)


                                                                                    Three Months Ended June 30, 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             GAAP
                                                                       Revenue                                                                     Revenue                                                             Revenue
                                                                                                                                                                                                                         -------

    Revenues                                  $148,660                                                                           $24,247                                                                          $172,907

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

    Non-GAAP Revenues                         $151,323                                                                           $24,247                                                                          $175,570
                                              ========                                                                           =======                                                                          ========


    GAAP Gross profit                          $70,294                      47.3%                         46.5%                                           $7,723                              31.9%                  31.9%                           $78,017    45.1%   44.4%

    Stock-based compensation
     expense                              561                      0.4%                           0.4%                                83                                 0.3%                       0.3%                            644                  0.4%    0.4%

    Amortization expense of
     acquired intangible assets         4,882                      3.3%                           3.2%                               332                                 1.4%                       1.4%                          5,214                  3.0%    3.0%

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

    Inventory fair value
     adjustments                          920                      0.6%                           0.6%                                 -                                   -   %                      -   %                        920                  0.5%    0.5%

    Acquisitions related expenses          28                                 -   %                         -   %                                 -                                          -   %                  -   %                       28            -  %    -  %

      Severance expenses                  199                      0.1%                           0.1%                                                                                              199                            0.1%                 0.1%
                                          ---                                                                                                                                                       ---

    Non-GAAP Gross profit                      $79,547                      53.5%                         52.6%                                           $8,138                              33.6%                  33.6%                           $87,685    50.7%   49.9%
                                               =======                                                                                                    ======                                                                                     =======


    GAAP Operating income                      $20,514                      13.8%                         13.6%                                           $1,952                               8.1%                   8.1%                           $22,466    13.0%   12.8%

    Stock-based compensation
     expense                            2,042                      1.4%                           1.3%                               240                                 1.0%                       1.0%                          2,282                  1.3%    1.3%

    Amortization expense of
     acquired intangible assets         7,739                      5.2%                           5.1%                             1,313                                 5.4%                       5.4%                          9,052                  5.2%    5.2%

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

    Inventory fair value
     adjustments                          920                      0.6%                           0.6%                                 -                                   -   %                      -   %                        920                  0.5%    0.5%

    Acquisitions related expenses         259                      0.2%                           0.2%                                 -                                   -   %                      -   %                        259                  0.1%    0.1%

      Severance expenses                1,590                      1.1%                           1.1%                                56                                 0.2%                       0.2%                          1,646                  1.0%    0.9%
                                        -----                                                                                        ---                                                                                          -----

    Non-GAAP Operating income                  $35,727                      24.0%                         23.6%                                           $3,561                              14.7%                  14.7%                           $39,288    22.7%   22.4%
                                               =======                                                                                                    ======                                                                                     =======


    GAAP Corporate costs                                                                                                                                                              $22,584                   13.1%                        12.9%

    Stock-based compensation expense                                                                                                                                          3,213                        1.9%                         1.8%

    Acquisition related expenses                                                                                                                                                (8)                              -   %                        -   %

      Severance expenses                                                                                                                                                         57                               -   %                        -   %
                                                                                                                                                                                ---

    Non-GAAP Corporate costs                                                                                                                                                          $19,322                   11.2%                        11.0%
                                                                                                                                                                                      -------


    Non-GAAP Income from operations                                                                                                                                                   $19,966                   11.4%                        11.4%
                                                                                                                                                                                      =======

OMCL-E

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