Omnicell (OMCL) saw its loss widen to $10.75 million, or $0.29 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.38 million, or $0.01 a share. On the other hand, adjusted net income for the quarter stood at $2.09 million, or $0.06 a share compared with $12.87 million or $0.35 a share, a year ago.
Revenue during the quarter dropped 11.96 percent to $150.55 million from $171 million in the previous year period. Gross margin for the quarter contracted 411 basis points over the previous year period to 42.64 percent. Operating margin for the quarter stood at negative 11.45 percent as compared to a positive 1.08 percent for the previous year period.
Operating loss for the quarter was $17.24 million, compared with an operating income of $1.85 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.30 million compared with $25.72 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1219 basis points in the quarter to 2.86 percent from 15.04 percent in the last year period.
"During the first quarter of 2017, Omnicell won in the marketplace through its differentiated platform and innovative products including the XT Series. I am pleased with our new conversion wins and customers’ strong interest and acceptance of our new XT Series," said Randall Lipps, Omnicell president, chief executive officer and chairman. "An expected sequential decline in revenue due to the XT Series product launch and customer implementations timing affected our first quarter revenue and results, but our order intake and pipeline of new sales opportunities demonstrate our strong market momentum." Mr. Lipps added.
For the second-quarter, Omnicell forecasts adjusted revenue to be in the range of $172 million to $178 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.21 to $0.27.
For fiscal year 2017, Omnicell forecasts adjusted revenue to be in the range of $720 million to $740 million. The company expects diluted earnings per share to be in the range of $1.22 to $1.34 on adjusted basis.
Operating cash flow improves significantlyOmnicell has generated cash of $28.18 million from operating activities during the quarter, up 28.06 percent or $6.17 million, when compared with the last year period. The company has spent $6.84 million cash to meet investing activities during the quarter as against cash outgo of $279.86 million in the last year period.
The company has spent $30.14 million cash to carry out financing activities during the quarter as against cash inflow of $228.83 million in the last year period.
Cash and cash equivalents stood at $46.35 million as on Mar. 31, 2017, down 13.35 percent or $7.14 million from $53.49 million on Mar. 31, 2016.
Working capital declines
Omnicell has witnessed a decline in the working capital over the last year. It stood at $96.90 million as at Mar. 31, 2017, down 12.44 percent or $13.76 million from $110.66 million on Mar. 31, 2016. Current ratio was at 1.49 as on Mar. 31, 2017, down from 1.55 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 79 days for the quarter from 101 days for the last year period. Days sales outstanding went up to 72 days for the quarter compared with 69 days for the same period last year.
Days inventory outstanding has decreased to 40 days for the quarter compared with 59 days for the previous year period. At the same time, days payable outstanding went up to 32 days for the quarter from 27 for the same period last year.
Debt comes downOmnicell has recorded a decline in total debt over the last one year. It stood at $214.54 million as on Mar. 31, 2017, down 5.68 percent or $12.92 million from $227.46 million on Mar. 31, 2016. Total debt was 23.58 percent of total assets as on Mar. 31, 2017, compared with 24.62 percent on Mar. 31, 2016. Debt to equity ratio was at 0.49 as on Mar. 31, 2017, down from 0.55 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
