Omnicell Disappoints Investors

HDM Breaking News, April 22, 2008

The stock price of hospital software vendor Omnicell Inc. fell 32% in mid-day trading on the NASDAQ exchange on April 22 after the vendor reported big first quarter revenue gains but profit below expectations and reduced financial guidance for the rest of 2008.

The Mountain View, Calif.-based vendor is best known for automated pharmaceutical dispensing cabinets, supply management software and bedside medication management software. Omnicell reported first quarter net income of $3.7 million, compared with $4 million in profit during the same period last year. Earnings per share of 10 cents fell substantially short of investment analysts’ expectations of 18 cents.

Quarterly revenue rose 30% to $62.1 million, beating expectations by $900,000. But orders were lower than Omnicell expected in the first quarter, and the company lowered its financial guidance for 2008.

The vendor now expects earnings per share of 65 cents to 75 cents, compared with earlier analyst expectations of 87 cents on revenue of $249.3 million to $255.7 million, down from an expected $269.5 million.

More information is available at omnicell.com.

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