Omnicell (OMCL) 8-K Financial statements and exhibits

Exhibit 99.1

Contact:

Dennis P. Wolf	Omnicell, Inc.
EVP of Operations, Finance,	1201 Charleston Drive
Administration & CFO	Mountain View, CA 94043
800-850-6664, ext. 6482
dennisw@omnicell.com

For Immediate Release

Omnicell Announces Record Revenue For Second Quarter 2004

Mountain View, Calif. – July 22, 2004 — Omnicell, Inc. (NASDAQ: OMCL), a leading provider of patient safety solutions preferred by nurses, today announced results for the quarter ended June 30, 2004.

Financial highlights were as follows:

•Net income for the quarter was $2.4 million or $0.09 per diluted share, compared to net income of $1.3 million or $0.05 per diluted share for the same period of 2003 and net income of $2.4 million or $0.08 per diluted share for the first quarter of 2004.

•For the second quarter of 2004, total revenue was a record $29.2 million, compared to $25.1 million for the same period in 2003 and $27.8 million for the first quarter of 2004.

•Total operating margin was $2.5 million, compared to $1.4 million for the same period of 2003 and an operating margin of $2.4 million for the first quarter of 2004.

•Gross margin was 60.5% for the second quarter of 2004, compared to 58.2% for the same period in 2003 and 59.7% for the first quarter of 2004.

•Total operating expenses were $15.2 million for the second quarter of 2004, compared to $13.3 million for the same period of 2003 and $14.2 million for the first quarter of 2004.

•Cash balances as of June 30, 2004, were up by $2.8 million to $36.3 million, compared to $33.5 million as of December 31, 2003.

Other highlights included:

•Total backlog as of June 30, 2004 was $46.4 million, compared to $41.7 million as of March 31, 2004, representing an increase of $4.7 million.  Backlog increased 42% from the same period of last year.

•As of June 30, 2004, we had completed our installation obligation for 30,477 medication and supply dispensing systems at 1,513 healthcare facilities.

Omnicell Chairman, President and CEO Randall A. Lipps, commenting on the current quarter’s business results, said, “We are pleased with the second quarter performance, as we posted record revenues as well as record bookings. The healthy growth in backlog was driven by several large deals, which reflected continued demand for our wide range of medication-use process solutions, along with renewed demand for our similarly broad range of supply chain management products. During the quarter, we significantly expanded our sales force and we believe that this investment will enable us to grow our business further.”

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Conference Call Details

Management will report financial results for the second quarter of 2004 on Thursday, July 22, at 2:00 p.m. PDT via conference call. Investors and analysts interested in joining the conference may access the call by dialing 800-257-1836 — toll-free (domestic) or 303-262-2143 — direct-dial (international) approximately 10 minutes prior to the scheduled start. A replay of the call will be available from 4:00 p.m. PDT on July 22 through 11:59 p.m. PDT on July 29. Dialing 800-405-2236 — toll-free (domestic) or 303-590-3000 — direct-dial (international) and entering the passcode 11003024# for both numbers will access the call replay. On the conference call, management will be discussing certain additional financial and statistical information. That information can be located on the “Investor Relations” page of Omnicell’s Web site at www.omnicell.com.

About Omnicell

Established in 1992, Omnicell (NASDAQ: OMCL) is a leading provider of patient safety solutions preferred by nurses. Improving patient care by enhancing operational efficiency, Omnicell solutions are used throughout the healthcare facility—in the pharmacy, nursing units, surgical services, cath lab, and all the way to the patient’s bedside. The company’s MedGuard™ line of solutions for the medication-use process includes systems for physician order management, automated pharmacy retrieval, medication packaging, medication dispensing, and nursing workflow automation with bar code medication administration. For the medical-surgical supply chain, Omnicell’s OptiFlex™ product line provides open bar code systems, cabinet-based supply management, integrated open and cabinet-based systems, and Web-based procurement. More than 1,500 healthcare facilities use Omnicell solutions to help reduce medication errors, operate more efficiently, and decrease costs—ultimately contributing to improved clinical and financial outcomes. For more information, visit www.omnicell.com.

Forward Looking Statements

To the extent any statements contained in this release deal with information that is not historical, these statements are necessarily forward-looking. As such, they are subject to the occurrence of many events outside Omnicell’s control and are subject to various risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statement. The risk factors are described in the Company’s Securities and Exchange Commission filings and include, without limitation, the continued growth and acceptance of our products and services and the continued growth of the clinical automation and workflow automation market generally, the potential of increasing competition, the ability of the Company to maintain profitability, grow product backlog, retain key personnel, cut expenses, develop new products and integrate acquired products or intellectual property in a timely and cost-effective manner, and improve sales productivity. Prospective investors are cautioned not to place undue reliance on forward-looking statements.

(see detailed financial results on next page)

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OMNICELL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

	Three months ended June 30,								Six months ended  June 30,
	2004			2003			Change (%)		2004			2003			Change (%)
Revenues:
Product revenues	$	23,380		$	20,447				$	45,607		$	38,004
Service and other revenues	5,827			4,694					11,429			9,212
Total revenues	29,207			25,141			16	%	57,036			47,216			21	%
Costs of revenues:
Cost of product revenues	9,340			8,819					18,537			16,525
Cost of service and other revenues	2,185			1,678					4,206			3,425
Total cost of revenues	11,525			10,497					22,743			19,950
Gross profit	17,682			14,644			21	%	34,293			27,266			26	%
Operating expenses:
Research and development	1,837			2,106					4,203			4,475
Selling general and administrative	13,218			10,551					25,094			20,422
Restructuring and severance charges	171			630					171			630
Total operating expenses	15,226			13,287			15	%	29,468			25,527			15	%
Income from operations	2,456			1,357					4,825			1,739
Interest and other income	77			136					161			260
Interest and other expense	(56		)	(32		)			(58		)	(77		)
Income before provision for income taxes	2,477			1,461					4,928			1,922
Provision for income taxes	104			170					201			186
Net income	$	2,373		$	1,291		84	%	$	4,727		$	1,736		172	%
Net income per share - basic	$	0.10		$	0.06				$	0.19		$	0.08
Net income per share - diluted	$	0.09		$	0.05				$	0.17		$	0.07
Weighted average shares outstanding - basic	24,752			22,382			11	%	24,527			22,243			10	%
Weighted average shares outstanding - diluted	27,709			24,646			12	%	27,927			23,601			18	%

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OMNICELL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	June 30,		December 31,		Change
	2004		2003 (1)		($)		(%)
	(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short term investments	$	36,348	$	33,524	2,824		8	%
Accounts receivable, net	14,418		14,529		(111	)	-1	%
Inventories	12,996		8,783		4,213		48	%
Receivables subject to a sales agreement	2,737		2,737		—		0	%
Other current assets	5,531		3,966		1,565		39	%
Total current assets	72,030		63,539		8,491		13	%
Property and equipment, net	5,311		4,833		478		10	%
Long-term receivables subject to a sales agreement	3,807		4,985		(1,178	)	-24	%
Other assets	13,907		11,110		2,797		25	%
Total assets	$	95,055	$	84,467	10,588		13	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	9,059	$	2,921	6,138		210	%
Accrued liabilities	8,151		15,403		(7,252	)	-47	%
Deferred service revenue	14,983		12,650		2,333		18	%
Deferred gross profit	10,884		10,125		759		7	%
Obligation resulting from sale of receivables	2,737		2,737		—		0	%
Current portion of note payable	—		305		(305	)	-100	%
Total current liabilities	45,814		44,141		1,673		4	%
Long-term obligation resulting from sale of receivables	3,807		4,985		(1,178	)	-24	%
Other long-term liabilities	557		583		(26	)	-4	%
Stockholders’ equity	44,877		34,758		10,119		29	%
Total liabilities and stockholders’ equity	$	95,055	$	84,467	10,588		13	%

(1) Derived from the December 31, 2003 audited consolidated balance sheet.

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