(By Balaseshan) Omnicell Inc. (NASDAQ:OMCL), a provider of automated solutions for hospital medication and supply management, increased its fiscal 2012 guidance to reflect the closing of the acquisition of MTS Medication Technologies.
The acquisition of MTS Medication provides Omnicell the opportunity to be the medication management company across the full continuum of medical care. MTS contributes a growing revenue stream that is accretive to adjusted earnings and is expected to support Omnicell's goal of achieving 15% adjusted operating margins.
For the second quarter of 2012, Omnicell expects adjusted earnings of $0.17 to $0.18 per share and revenue of about $74 million, while Street predicts profit of $0.17 per share on revenue of $65.73 million.
For the fiscal 2012, the company raised its adjusted earnings guidance to range of $0.75 to $0.81 per share from previous forecast of $0.67 to $0.72 per share, while Street predicts $0.71 per share.
The company lifted 2012 revenue outlook to range of $307 million to $315 million from previous estimate of $263 million to $267 million, while Street predicts $273.55 million. Omnicell's previous outlook for 2012 does not include the acquisition of MTS Medication Technologies.
Adjusted earnings per share also excludes direct expenses associated with closing the acquisition, which are estimated to be between $4.0 million and $4.5 million, most of which is expected to be recorded in the second quarter of 2012.
Product backlog, which is the value of firm orders that have not yet completed installation, is expected to be between $138 million and $142 million for fiscal 2012 and is comprised of Omnicell acute care medication and supply management products.
It is currently expected that MTS Medication Technologies products will not materially change product backlog due to the heavy weighting of its revenue towards consumables.
OMCL closed Monday's regular session at $13.80. The stock has been trading between $12.74 and $18.15 for the past 52 weeks.