Omnicell Inc (OMCL, Financial), a leader in transforming the pharmacy care delivery model, released its third quarter 2023 results on November 2, 2023. The company reported a decrease in revenues and net income compared to the same period last year. Omnicell also announced a reduction in force as part of a cost containment plan.
Financial Performance
Omnicell's total GAAP revenues for Q3 2023 were $299 million, down $49 million, or 14%, from Q3 2022. The decrease in revenues is attributed to lower point-of-care revenues primarily due to ongoing health systems capital budget and labor constraints.
The company's GAAP net income for Q3 2023 was $6 million, or $0.12 per diluted share, compared to $17 million, or $0.37 per diluted share, for Q3 2022. Non-GAAP net income for Q3 2023 was $28 million, or $0.62 per diluted share, compared to $45 million, or $1.00 per diluted share, for Q3 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, Omnicell's balance sheet reflected cash and cash equivalents of $447 million, total debt of $569 million, and total assets of $2.22 billion. Cash flows provided by operating activities in Q3 2023 totaled $57 million, compared to $21 million in Q3 2022.
Cost Containment Plan
Omnicell announced a cost containment plan, which includes a headcount reduction across business functions. The company expects to incur approximately $12 million - $18 million of non-recurring restructuring and related charges related to the plan. The majority of the charges are expected to be incurred in Q4 2023, with the plan expected to be substantially completed by the end of Q2 2024.
Updated 2023 Guidance
For the full year 2023, Omnicell expects bookings to be between $850 million and $950 million. The company expects total revenues to be between $1.135 billion and $1.155 billion, and non-GAAP earnings per share to be between $1.65 and $1.80.
For Q4 2023, the company expects total revenues to be between $247 million and $267 million, and non-GAAP earnings per share to be between $0.07 and $0.22.
Omnicell's CEO, Randall Lipps, expressed disappointment with the weakness in demand but remains optimistic about the company's long-term position. He stated, "The need for the healthcare industry to automate, optimize, and modernize is more important than ever and we believe Omnicell is well positioned to deliver value to all of our stakeholders over the long-term."
Explore the complete 8-K earnings release (here) from Omnicell Inc for further details.
