Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its third quarter ended September 30, 2015.
GAAP results: Revenue for the third quarter of 2015 was $125.2 million, up $12.4 million or 11.0% from the second quarter of 2015, and up $12.7 million or 11.3% from the third quarter of 2014. Revenue for the nine months ended September 30, 2015 was $354.2 million, up $34.9 million or 10.9% from the nine months ended September 30, 2014.
Third quarter 2015 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $8.0 million, or $0.22 per diluted share. This compares to GAAP net income of $8.8 million, or $0.24 per diluted share, for the second quarter of 2015, and GAAP net income of $7.3 million, or $0.20 per diluted share, for the third quarter of 2014.
GAAP net income for the nine months ended September 30, 2015 was $23.1 million, or $0.63 per diluted share, which includes a $3.4 million gain on business combination of an equity investment. GAAP net income was $21.3 million, or $0.58 per diluted share, for the nine months ended September 30, 2014.
Non-GAAP results: Non-GAAP net income for the third quarter of 2015 was $13.2 million, or $0.36 per diluted share, excluding $4.0 million of stock-based compensation expense and $1.2 million, net of tax effect of $0.8 million, of amortization expense for all intangible assets associated with past acquisitions. This compares to non-GAAP net income of $11.1 million, or $0.30 per diluted share, for the third quarter of 2014. Non-GAAP net income for the third quarter of 2014 excluded $3.2 million of stock-based compensation expense and $0.6 million, net of tax effect of $0.5 million, of amortization expense for all intangible assets associated with past acquisitions. Third quarter 2015 results compare to non-GAAP net income of $10.3 million, or $0.28 per diluted share, for the second quarter of 2015. Non-GAAP net income for the second quarter of 2015 excludes $3.6 million of stock-based compensation expense and $1.3 million, net of tax effect of $0.5 million, of amortization expense for all intangible assets associated with past acquisitions. Non-GAAP net income for the second quarter also excludes $3.4 million gain on the Company's 2012 minority equity investment in Avantec Healthcare Limited ("Avantec"), which was recorded as part of Omnicell's acquisition of the remaining 85% of the issued and outstanding ordinary shares of Avantec not already held by Omnicell in April 2015.
Non-GAAP net income for the nine months ended September 30, 2015 was $34.2 million, or $0.93 per diluted share. Non-GAAP net income for the nine months ended September 30, 2015 excludes $11.3 million of stock-based compensation expense and $3.3 million, net of tax effect of $1.7 million of amortization expense for all intangible assets associated with past acquisitions. Non-GAAP net income for the nine months ended September 30, 2015 also excludes a $3.4 million gain on business combination of an equity investment in Avantec. Non-GAAP net income for the nine months ended September 30, 2014 was $31.9 million, or $0.87 per diluted share, excluding $8.6 million of stock-based compensation expense and $2.0 million, net of tax effect of $1.3 million of amortization expense for all intangible assets associated with our business acquisitions.
"I am pleased to report record quarter revenues and strong earnings growth in the third quarter," said Randall Lipps, Omnicell president, chairman and CEO. "The fundamentals of our business have not changed and we continue to close a solid mix of competitive wins and our existing customers continue to expand their implementations. Driven by our three-leg growth strategy of differentiated products, expansion into new markets and targeted acquisitions, the company has all the ingredients for continued success."
Reporting Segments
As reported last quarter, beginning the first quarter of 2015, Omnicell enhanced the management of its business, operating structure and segment reporting structure by excluding certain corporate-level costs from our reporting segments based on how the Chief Operating Decision Maker ("CODM") reviews the business. Corporate-level costs may include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. Omnicell's CODM allocates resources and evaluates the performance of our segments using information about its revenues, gross profit and income from operations, excluding certain costs which are managed separately at the corporate level.
Omnicell's medication management systems selected by Sentara Healthcare