Omnicell (OMCL) has reported 75.32 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.98 million, or $0.05 a share in the quarter, compared with $8.04 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.89 million, or $0.40 a share compared with $13.20 million or $0.36 a share, a year ago.
Revenue during the quarter surged 41.13 percent to $176.74 million from $125.23 million in the previous year period. Gross margin for the quarter contracted 475 basis points over the previous year period to 46.12 percent. Total expenses were 97.21 percent of quarterly revenues, up from 88.93 percent for the same period last year. That has resulted in a contraction of 828 basis points in operating margin to 2.79 percent.
Operating income for the quarter was $4.93 million, compared with $13.86 million in the previous year period.
However, the adjusted operating income for the quarter stood at $22.49 million compared to $19.80 million in the prior year period. At the same time, adjusted operating margin contracted 309 basis points in the quarter to 12.72 percent from 15.81 percent in the last year period.
"Omnicell completed another strong quarter marked by record revenues and market share gains," said Randall Lipps, Omnicell President, chief executive officer and chairman. "Omnicell’s continued growth is the result of successfully broadening our product portfolio, expanding the markets we participate in, and partnering with our customers to address medication management across the full continuum of patient care. The Company is well positioned to take advantage of the great opportunities ahead," Mr. Lipps added.
For financial year 2016, Omnicell projects adjusted revenue to be in the range of $700 million to $710 million, the company forecasts diluted earnings per share to be in the range of $1.50 to $1.60 on adjusted basis.
Operating cash flow improves significantlyOmnicell has generated cash of $24.47 million from operating activities during the nine month period, up 312.51 percent or $18.54 million, when compared with the last year period. The company has spent $293.34 million cash to meet investing activities during the nine month period as against cash outgo of $41.31 million in the last year period.
Cash flow from financing activities was $235.21 million for the nine month period as against cash outgo of $32.70 million in the last year period.
Cash and cash equivalents stood at $47.29 million as on Sep. 30, 2016, down 18.13 percent or $10.47 million from $57.76 million on Sep. 30, 2015.
Working capital increases marginally
Omnicell has recorded an increase in the working capital over the last year. It stood at $138.90 million as at Sep. 30, 2016, up 1.21 percent or $1.65 million from $137.24 million on Sep. 30, 2015. Current ratio was at 1.70 as on Sep. 30, 2016, down from 2.12 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 82 days for the quarter from 119 days for the last year period. Days sales outstanding went down to 77 days for the quarter compared with 86 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding went down to 30 days for the quarter from 38 for the same period last year.
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