Omnicell Inc (OMCL) has reported a 97.95 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.16 million in the quarter, compared with $7.66 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.80 million, or $0.37 a share compared with $14.44 million or $0.40 a share, a year ago.
Revenue during the quarter surged 31.97 percent to $171.97 million from $130.32 million in the previous year period. Gross margin for the quarter contracted 672 basis points over the previous year period to 43.22 percent. Operating margin for the quarter stood at negative 0.11 percent as compared to a positive 9.19 percent for the previous year period.
Operating loss for the quarter was $0.18 million, compared with an operating income of $11.97 million in the previous year period.
However, the adjusted operating income for the quarter stood at $18.69 million compared to $20.42 million in the prior year period. At the same time, adjusted operating margin contracted 480 basis points in the quarter to 10.87 percent from 15.67 percent in the last year period.
"2016 was a successful year for Omnicell with record bookings, revenues and earnings," said Randall Lipps, Omnicell president, chief executive officer 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.''
For the first-quarter, Omnicell projects adjusted revenue to be in the range of $150 million to $155 million. Omnicell projects adjusted revenue to be in the range of $740 million to $760 million for financial year 2017. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.32 to $1.42 on adjusted basis.
Operating cash flow improves significantly
Omnicell Inc has generated cash of $47.94 million from operating activities during the year, up 41.99 percent or $14.17 million, when compared with the last year.
The company has spent $341.32 million cash to meet investing activities during the year as against cash outgo of $45.60 million in the last year.
Cash flow from financing activities was $265.72 million for the year as against cash outgo of $31.83 million in the last year period.
Cash and cash equivalents stood at $54.49 million as on Dec. 31, 2016, down 33.73 percent or $27.73 million from $82.22 million on Dec. 31, 2015.
Working capital decreases marginally
Omnicell Inc has witnessed a decline in the working capital over the last year. It stood at $134.50 million as at Dec. 31, 2016, down 3.59 percent or $5 million from $139.50 million on Dec. 31, 2015. Current ratio was at 1.74 as on Dec. 31, 2016, down from 2.12 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 60 days for the quarter from 55 days for the last year period. Days sales outstanding went up to 40 days for the quarter compared with 38 days for the same period last year.
Days inventory outstanding was almost stable at 33 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 13 days for the quarter from 16 for the same period last year.
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