OMCL - Earnings call transcript Q1 2018

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Operator

Good afternoon. My name is Jason and I'll be your conference operator today. At this time, I would like to welcome everyone to the Omnicell First Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like the now our over host, Mr. to would call turn to I Financial Officer. Chief Kuipers, Peter Sir, begin you may your call.

Peter Kuipers

call. Thank to you. conference the welcome Omnicell first Good quarter XXXX afternoon and results

Founder, me materially expressed Chairman, will Joining from forward-looking to that those other subject or uncertainties statements Randall results could is Lipps, cause include President CEO. actual This today and call and factors risks, implied. Omnicell to differ

the statements on statements, information description of the that are undue The these aware as please For and today of on XX, refer the cause reports XXXX Omnicell beliefs more you should reliance today. forward-looking issued SEC Omnicell to filed events or may in this our call a made forward-looking in to detailed more be passage statements made date recent XXXX that the filed of call – in forward-looking impact risks simply of February release this Form press any on on the these is the XX, with time made with conference Please other on place today, this change. based and annual April only. XX-K of report Future SEC. date beliefs not the all

conference of then our audio the the XXXX, for is is prohibited. on will cover Inc. duplication Finally, Randall quarter expressed update Omnicell, this consent will guidance taping, call business, Omnicell of and the provide our for or any first the and of property year. written rebroadcast without I first our results an

and section our which the earnings Relations website at was are results financial is included of first Our our in Investor announcement released in today posted omnicell.com. earlier quarter

posted in will remarks also section. prepared Our same the be

the over turn to call now Randall. me Let

Randall Lipps

company's the results. acquisitions progress continued performance and afternoon, We're quarter the great XXXX as you business with customer and excited to first financial to the of for everyone. momentum on Good update innovation,

and last automated In build Central The achieving a leading fully full management as towards the with pharmacy. and Automated announced medication leading goal pleased we advancements our expand We pharmacy platform robotic December range our with year, innovation step the of across System. we significant edge automated the central XRX is are of customer fully Pharmacy environments. XRX the industry the

Workflow upgrade IVX we pharmacies greenfield the entered IV Also and and enabling the Cloud. compounds XRX technological the Beyond in potential, powered safely opportunities. We IVX the pipeline. efficiently Workflow a first December quarter Workflow continue healthy IV [ph] represents and by advancement a XRX prepare additional in products and the for is last build the significant IVX non-cancellable agreements of IVX announced year, into see for in both significant processes, treatments. commercial to to

XRX second Workflow to the half the As the the for customer products general we and communicated previously, IVX of installs second quarters year XXXX are this and in third the of availability respectively, contributing revenue.

that to I'd like momentum in clear the marketplace. the Now, acquisitions. summary, are we it's winning In customer in discuss

This bookings. rate remainder quarter company around business first and customers who of from the a competitive strong is never of new During where XXXX, the greenfield automated had a indicator the XX% of in strength competitive had where conversion of the conversions good before. of we XX% total of

as well and ending growth shipped the fast by months series XT XX the XX%. to customers, our rate continues For accepted competitive XT we frames Omnicell received March was throughout continued and see XXXX, new very and XX, XXXX. conversion live be in

as the platform seeking aligns retail combination recent of believe healthcare, with number care entrants. well strongly continuum strategy trends, in business that of the We strategic vendors well leading see payers, also hospital industry aligns platform formation current across where non-traditional our providers, we of healthcare the instead systems trends are Our the reducing pharmacies and healthcare with as partnerships.

As management partner to variety of and with continues in them of healthcare a entrants the medication and area positioned consolidation automation best we're care grow, non-traditional settings.

scalable Now, in grown the last number three by consistent implementing the strategies. growth we've years, of successfully business

first customer we the large during quarter our gained experience and broadened new deepened enabling believe customers These analysis create platform. growth at to growth to In product constitute the have their years. growth via market platform of the them quarter, further is the differentiated accounts use an performance line. and level markets for and Omnicell under numerous of market experienced the streams our pillar and product momentum share, through considerable our a of strategic of have acquisitions. that first XXXX, differentiated performance, highest trend continuation conversions gain First, we digital and that many we share base our large growth continue to in of With place with a course of data do our notable of within, large lines to of we performance, wins added for competitive center

cardless in a the also and pharmacy We leveraging bookings located center. products City platform. XRX in on adopting conversion is North the Omnicell’s the customers existing multiple cultivated also quarter, as with platform to including North has Omnicell’s solutions. a in seeing Strategic the Health power Omnicell IVX the the series, Omnicell Missouri to hospital, Omnicell wins West automated Foundation XT, customer chosen City, are as full robot Increasingly, Kansas are solutions, significant Urbana, of deals XT Baltimore with Kansas strategic with and and wins leverage Carle platform LifeBridge new platform, quarter platform Omnicell Illinois. to well dollar the IV multimillion Omnicell XX% will in platform their new over strong model. differentiated performance we our chose full prominent Carle customers. support the of located of this adopting be including

Brigham real double of the performance and management and all number to Women's Carolina through Wake their pleased costs cloud. center improved Forest that quarter, operation. increased Hospital wide time have using Center of than in our are to customers real in Several more we in see contracts and time the the adoption signed reduce Boston of offering momentum We In facilities Medical have on performance will pharmacy the performance the center. North including chosen enterprise first center performance drive Baptist

significantly also solutions number IV has cost enhance as for a continue Healthcare, Methodist our to healthcare the help safety adopting approach Memphis, of one IV, because six We in in see outsourced Omnicell facilitate greater the Le reduce savings efficiency hospitals automation IV system in contribute These is chosen a compliance operations. over solution hospital to eliminating across an sterile initiatives, chose achieving Eskenazi robotic growing to customers Bonheur therapy, but have Indiana goal in our support and which supports of technology $X a competitive previously and of in Indianapolis. Omnicell Tennessee, growth America all to of include considered systems safety, their Eskenazi the annual IV improve North compounding solution room. million. production will patient’s

outside in in for of dispensing designed products outside recently health the University commitment new new markets support Our orders a control. second last those sets This to their Demonstrating markets US, essential. new the European to RDS hospital began specifically the our includes robot US flows supply retail regions. the accepting [ph] is also market. for specifically we Expansion used a our designed for work pharmacy the Hospital we expanding Omnicell to Wales, pillar automated in systems several Aneurin believe to for has which fueled large chosen growth Board, strategic suites United board Kingdom us come. in Bevan years, also the the well theater into throughout adopt years up

results. Our pillar deliver has third strategic of acquisitions to our and presence great relevance expanding through also continued

seeing cross-selling foundation momentum solutions. for established product future are launch that specifically and to a and customer IV for combined three believe pillar our scaling platform performance success center and the our business. the the growth the notable We of base, total within strategy and continues We

for over some me let financials. on update turn it Now, the back Peter to

Peter Kuipers

Randall. Thank you,

revenue $XXX quarter first was XX% million GAAP up year-over-year. Our of XXXX

The first X% quarter loss up and share a per of with $X.XX XXXX. earnings was from in the share is in of per first quarter accordance GAAP

compensation well GAAP financial and investors cost posted related one-time statements in benefit the adjustments basis, which useful included is and assets We for of as excludes we is acquisitions, stock first stock related on In non-cash to are GAAP and acquisition events reform restructuring report reconciliation quarter non-GAAP results our press release as we a GAAP Tax associated financial addition website. believe related because to that non-GAAP amortization one-time amortization on Act our a earnings XXXX. acquisition acquisition use to of fair our acquisition impacts it addition Jobs and our results to the expenses. of results, accounting Cuts tax reported expense revenue expenses, one-time A in and related expenses and and results non-GAAP statements component of our compensation with is full understand value to inventory financial deferred from impacts and intangible

For in momentum $X.XX the for completion in quarter that which strong non-GAAP first cost above This implementations resulted $XXX the the range quarter million was strength mostly was general North Revenue of EPS we of to first our to management guidance America in our revenue million provided earnings by of $XXX $XXX driven is timing above in results the non-GAAP call. guidance quarter, million, fourth earlier of $X.XX per as and above which of well is consensus. share, as $X.XX business. and strength range

consist consisting dispensing of of and Omnicell MACHX medication XT automation performance and dispensing also anesthesia and OmniRx center Automation is segments, Our analytics, cabinets, our pharmacy, systems. business workstations, adherence. analytics reported automated analytics Omnicell supply, central in robotic

the a of equipment subscription segment. create pharmacists Aesynt pharmacies regimens. Our The that acquisitions InPharmics MACHX, this helping included to Avantech, of to segment stay adherence packaging platform of are patients software, broad assist adherence in retail in Adherence used Medication by medication consists packages and medication and

contributed acquisitions analytics We $XX to Ateb The in segment million non-GAAP of quarter and applied income separately. of of of for expenses $XX in of operating Non-GAAP $XX the of XXXX. the the GAAP operating million in million to up compares in million same easily same are automation $X year. income first GAAP XXXX, of of the million quarter $XXX operating XXXX, certain quarter contributed $XX medication first million in quarter million the quarter quarter XXXX, operating income quarter in Our revenue from GAAP GAAP operating the in in of of segment same million, net operating first compares income quarter first segment. expenses of consisting from common $XXX first $X and quarter compares corporate million first million. revenue report year. in the included segment of adherence first in year. XXXX for income the million loss and basis, loss to the to of SurgiChem quarter last XXXX of last in $XX segment fourth quarter last Non-GAAP loss flat up other the million $X in the interest first outstanding in Non-GAAP that first approximately GAAP the medication $X adherence expenses from $XX quarter quarter On income expense XXXX Non-GAAP a cannot of of of in on operating XXXX was GAAP XXXX. XXXX. XXXX either first of the $X balance. million was and loan the a were of the primarily quarter the be MTS, Limited

the sheet balance flow. and Let’s to now cash move

which ICX operations XXXX implementations, for XX, customers. was build a X by from a of the quarter an and flow million in than from future as $XXX data in revenue. was inventory offset The by VBM cash last and first first deferred inventory use cash for million, well quarter, $XX primarily more for and Inventories XT March installs current million included units XXXX future increase as driven for and build at up XRX were series quarter

Workflow introductions market over years. Cloud, have the introductions XRX IVX concurrent three the IVX robot product the pharmacy the and that of we we With now series, by the ramping XT see powered

XXXX, increase It's XX $XX on driven lower at in outstanding our then from our the agreements, we in mostly quarter good X based XX, XX, by First, revenue. days days, XXXX fourth facility. then and our million on $XX $X.X balance XXXX to after days sequential quarter first sales days largely sales. the shipments. receivable at remember outstanding In was were increased December accounts XXXX. in for sales receivable enforced to that backlog the from loan paying the up March Accounts bookings, quarter The offering of million on cash million customer first to

in we shares common the During quarter, market not did offering. the sell of our stock at

loan loan bank our approximately debt As total EBITDA million XXXX, of balance months as had March of funded XX, outstanding and over the $XXX leverage outstanding XX X.X. was we measured under last

of XX XXXX or was XXXX headcount up March December from XX, XXXX. Our XX, as

for quarter guidance. XXXX specific move is the guidance to now follows. The Let’s as second

fourth between on second the non-GAAP bookings number the million quarter of $XXX expect revenue the deals dollar March to record and lesser ramp of $XXX throughout We year in and revenue from multimillion backlog, quarter full steady quarterly to implementation a committed XXXX be the new XX, we XXXX. anticipate IVX, and XXXX XRX products of extent revenue schedules million. a do including Based the the

expect and with our second $X.XX be of quarter year-to-date to We the non-GAAP $X.XX EPS plan. per consistent XXXX share between

XXXX year unchanged. is full guidance Our

representing of organic rate We $XXX expect the and XXXX to taking range. be product a XX% million, guidance between bookings $XXX midpoint the million growth when

contracted expenses of revenue from of around revenue a saw and of a million. reduction growth of $XXX the of XXXX, the from midpoint We a This $X between XXXX quarter organic the guidance non-GAAP we GPLP’s in range. of rate quarter revenue than first both net million when XXX we ASC which slightly of represents customers, reclassification first million and quarter be greater the XX% XXXX. expect to the In adopted in taking first XXXX operating to $XXX

the As net of of quarter adoption retroactive fourth guidance, penny comparison discussed our XXX. from in the EPS the which XXXX ASC previously, was XXXX in one The impact the purposes. earnings first includes of impact unchanged an call is of of increase for non-GAAP adoption quarter the

XXXX reviewing important note it's to $X.XX XXXX, that for of expect are and When EPS be $X.XX. a included. couple guidance, We items between to non-GAAP

for include costs EPS, policy. of directly for Aesynt do non-GAAP operating non-GAAP non-GAAP we integration $X consist systems the For Ateb approximately margins and These mostly HR and for impact adjust XXXX, expenses million ERP results on our of expenses and that non-GAAP IT not our integration consolidation. CRM, based

we non-GAAP million or equivalent expense related of XXXX, expect secured a to facility to senior interest Lastly, share. for to credit the headwind around per $X.XX around $X be EPS

for Finally, non-GAAP tax hand expenses update, of tax adjust rate our to the call tax XXXX, out back average GAAP assuming we’re round annual an to XX% expenses. To I’ll Randall. to

Randall Lipps

we summary, great quarter. a in had first Well,

to our in are with connected center. line winning We broader marketplace definitely the product that’s performance the now

We continue great to the have competitive conversion in arena. success

the that IVX we we also see, We that had there sales doubling in been robot momentum were see sales current in bookings we've and replacement a replacement to retail And and that a developing be in over have new to will new XXXX, product XXXX. customers, well. you a deploy can which predict Europe of of beginning from as lot and lines, like as small XRX, XT

their our lot months of leveraging some to And the to and of that with center, of latest Omnicell a partnering the again so analysis the quarter, continued for our predictive on we're another strategy. performance over partners pieces, Omnicell and developments I to our last forward. We're with and financial proud thank cloud work execution We're up XX we we're made intelligence of meet great adoption execution platform. extra XX and team. for efforts moving fast and of our the really successful us use from to really KPIs to them that's the great witnessing starting be performance and moving artificial want together great lining a lot for

it questions. over turn I’ll that, with So operator to

Operator

of your Mohan Instructions] Naidu from of first [Operator question the And comes line Oppenheimer.

Mohan Naidu

conversions. how conversions. What's see Can into So us be seems much side, that? And you're XX% high do runway you said pretty a coming bookings you to give view first from what driving in compared also these quarter. the to seeing? on last is you competitive That

Peter Kuipers

solution competitive actually and where and our continued the a our of just where conversion the in more in are platform customers -- side. on strength the platform It’s of the comes point more Yeah. really that's a that not strength RFP want whole and strength competitive single

Randall Lipps

people may to more they be to make the are the convert. just as deals, may be So, any platform it that more lines more adding of not move get

Mohan Naidu

add meaningful XRX lines? to Are numbers second to expectations these Got and half great from there. in also hear traction it. there And two on two so IVX, the

Peter Kuipers

Yeah.

of So and and some, our have goes first all bookings backlog we revenue.

included the half. We second in have some revenue

we if that numbers ramp up there's when and those make there's upside, guidance execute If that provide, wanted the we accordingly, the and on them. So yet. we to guidance just not sure upside, that’s we’ll case quite but

Mohan Naidu

is ramp Okay. side it looks And on on or into delivering? on the steep I how you reason that, is time why both side online being have and I just XRX much and guidance, the half, second revenue you want that of the pretty with the have and really to earning QX see ask dependent like

Peter Kuipers

there. IVX opportunities. some than different much remember and Right. because that XRX We are There greenfield XXXX, is largely are XXXX

confirmation So, any of have backlog, we really et don't cetera.

Mohan Naidu

question for me. Okay. Last

Randy, why So consolidating are platforms helping competition? that mentioned think just the seeing will you are in do the you are Like platforms? there, you consolidation consolidate them that product ones or you have Are consolidation the that or the the you industry. older health help systems

Randall Lipps

all think our the individual corporate down to total hospital patient. and the is the I way about Well, Qcare view that's view, view, approach a outside view, all

of chain location. the then geographic like really to aggregate going basis where the creating and a longitudinal So, to perspective groups unique most almost to gives a their and even out us drugs those distribution impact plough just foam basic our them they're into on a larger up where look consolidated first, look really lot are supply to patient things like, at people, what hospitals pieces outcomes centers but and various ability

make effectively. ability they're what supply data in strategic match It they to only sort the never efficiently, track of what's their that of is cost to And chain, how but their to so our sure using help safely all that and them important. to make had view deployed not ability really at decisions look and and

And of smaller ADCs, you bring we location, is assume, robots they outpatient not so the get but basic many packaging that broad our in not of leaving for line, biggest bigger product hospital, operational a when large drugs have what doing health their that's and plan, robotic to can have med and one of better just achieved adherence to and assumption you exercise hospital can achieved your supply success pricing, chain distribution while because on maybe that the own not and of the the you robot their you're achieved table work put the leverage attention. a but that’s leverage, going institutions these XRX at they've with lot people things centers center, of the just people needs in which of we

So and to multitude these that ones only hands can’t willing them get around partner a there's large technological approaches vertically of broadly scale, just that even the have are do they I we're believe and that. to groups both with a their unless attempting

answer. So I think pretty much the we're

Operator

your comes Jamie the of of from Fargo. line question Stockton Wells next And

Jamie Stockton

I deals is a that? follow-up a been have deliver I'm half going of you or from be still because there sure to Is there XRX you The guys that demand just kind more have to in. deals quickly, onus on [indiscernible] already come focus guess an on signed maybe sign that factored to will just on that ramp. the second

Peter Kuipers

the already, the included have For half what signed second we mostly are revenue. those in revenue,

Randall Lipps

As well as IVX.

are on order well, the that’s in we of but signed, numbers will are think So that lot year of to XRX more deals helpful. before more just and for signed be deals achieve contribution there be our IVX because second there in just that the end to those plan no conservative half that a year it the products, need were the put new I would the I

Jamie Stockton

Okay. to got with I sequentially. maybe was That's a just year-over-year. margin. do great. first sure, lot questions And it's has, that downtick far there gross Obviously, I'm a improved down, anything but I've definitely of a call couple one, the as gross come that, Is then revenue product on seasonality guess so maybe lower margin. sequential would on services, on that you on there specifically you expense putting going growth for saw the some pressure as out There number. categories

Peter Kuipers

No, it's out. mostly you leverage as pointed

got well in some in we're costs course, for first also. up as Of there IVX the quarter. startup starting and XRX We've

Jamie Stockton

left inefficiencies guys you with are around any that. Is anything GX there like experiencing that or costs XT manufacturing, any deal having we just noise any are transition, scrap still from around still to

Peter Kuipers

we So have for ADCs. line the assembly consolidated

scrap that's modest, and if you fairly So given cost size. our line, the will. would say is I

So, there's of fluctuation from to much. a quarter little not quarter, bit but

Jamie Stockton

think, for you from me, kind drove last any to Ateb for year kind the question acquisition of the pretty as Ateb did it, the adherence color Last growth that solid in rate contribution was, on in segment, medication anniversaried year-over-year that were see a inflating growth that the getting I continue but numbers Okay. initial segment. you've QX, of healthy now even the disproportionately what you

Peter Kuipers

of Well, now know we are adherence. also we packages full of have automation the messaging just between med used packaging, -- is here synchronization our robotic for suite that combined platform course, take of the a with and software

So momentum we there. some see good

sticks maybe for. it planned kind an but this we is out we form what have perspective, external So of

we’re well. So executing

Randall Lipps

Yeah. again of effectively. the that's systems both, The consumables, then add think adoption more work and and been good on to has more the contributing programs BBMXXX very allows those to uptake the I more software

a there. three So kind deal of way

Operator

question next Piper from comes the line Nina Deka from Jaffray. of Your

Nina Deka

and you more say that product. Is your that new increasing you you deal average it I size of are then than size we the deal have safe Would not say that wins average quite there up some number is mentioned notable or know is to going are yet. an yet increasing? deals one

Randall Lipps

time. over up going they're say would I

make that and and want provide solutions we bigger point we’re platform. deals, get why within platform that those full can more think integrated one only is the because the really point more we automation argument, not the I deals management and a customers medication wanted is the to those in

Nina Deka

Okay.

you seeing timeline taking the any products, it deals? they're close to pipeline increasingly as conversions. And of change wanting are the longer the multiple Is in so

Peter Kuipers

deals to so products of the in kind conversion close stable Fairly for The the the out are from kind of from balances part. revenue. normally that to backlog most installed sequentially,

Randall Lipps

Yeah.

in of booking, don't the think Just I necessarily timeline the so.

that months early that. total nine generally off platform, starting start you're about a we think the the with I year so conversation out

cycle. goes it normal the think through I

in like feel So get I Occasionally, one I been cases the they'll buy and that's buy then they'll like they've a some looking -- feel thing. accelerated. to whole you'll and just products two customer accelerate

of So good those are one-offs, it's sign. but a kind

Nina Deka

Thanks. think Okay. that And general availability is for on then was scheduled oh, April just believe. schedule? actually the last scheduled, in I one, I XRX full was IVX it Is

Randall Lipps

Yeah. Full schedule for this Yes. quarter.

Operator

Instructions] next Raymond Benchmark. [Operator Myers from And your question from comes

Raymond Myers

is Randy, us very My And and you told revenue this system update hospital first Are some us quarter that Can let in contracts on frame. we what's quarter? in that know getting had the you question installation us winning happening. time large extended recognition that last hand?

Peter Kuipers

Yes.

date the they the is in we signed XX last nationwide we out we quarter sole fairly over But say. that three have of steady that script agreements systems and from in mentioned as the a flow steadily for-profit I would receive so the fourth the implementations three of roll So those months time. sourced it call earnings

Randall Lipps

Yeah.

is may the lot few So but a do, where commitment those year there things contracts. the in of it back of long half be we'll initially in see contributions it’s a and to from more a

sequentially even then three we'll but or frame, four the of next out more. they're that for not years, it's see So

those to earnings. contracts wanted revenue last that in that just time large didn’t perspective immediately and put I So create

Raymond Myers

guidance year quite Your growth at XX% was bit but this to bookings is year, robust light a for last XX% of little guidance.

you confidence year high attain pretty that you targets? gives what So the some this can

Randall Lipps

many out and of think obtain the of ones to which year depending how products revenue this on high and is the rolling I during that's you’re XT. course beta you're Well, out backlog

so going for has XT installing It's new booking customers. performing well, been really and really well. And both

plan, though, think we out. the need to into are, building even and year I year products be rolling those think they not We're that will more the revenues. hit we're there have new of this some prudent I this

that So not what the optimistic shipped I we as think biggest about forecast our that’s that being out they end well we're that revenue for overly to is extremely and that stable now looking products of are revenue. the when in difference product are being lines and core as might book, get our have

Peter Kuipers

So, customers bookings for XT ’XX existing the comparing so more ’XX, we numbers versus right. expected upgrades replacements than at doubling, for where bookings or numbers see

So in that’s the growth well as factor year-over-year. a rate big

Raymond Myers

And Great. were you the XRX and hear did included I saying described? growth you not correctly are bookings you that the IVX in that that

Peter Kuipers

some are both modest and, there bookings for yeah. include, but Well, fairly

Raymond Myers

double on in more you in That's that signed one mentioned Can bold to QX, product You quarter. to contracts double than elaborate a performance center. fairly a statement you that?

Peter Kuipers

Yes.

in actually performance end multiple the full We the manage we services demonstrating strategic show center the center, off course do area, cetera. analytics we et who room. started an briefing you the again have in signed suite actually with medication, of And performance executive role customer to of in for then contracts We we how ‘XX. we performance savings, also first center how use the and think quarter So Pittsburgh increasing. the of importance of center opened definitely is

really and we is perspective a an that really So of -- see performance from center good our integral uptake platform. piece

Raymond Myers

So what changed in QX were that able you double? to

Peter Kuipers

of the signed deals first a to Right. the That’s got pipeline quarter. the matter and

Randall Lipps

Yeah.

transition. of has a a little there think been bit I

we looked I well, product think around. I think that later swapped systems software would and buy on a you our kind at people of and Capstone then put you have as, it

market it's the you look, and time to connect you you not thing the get say, so whatever and going back platform then that's really way system is piece and systems over and sell to big systems the sort and in in upfront come a manage in drive of they customers know the and right and results large present off people an first you Now help we that's a sale. shift post results have. put feed all go been a after go pretty the It's

Raymond Myers

expected quantify That’s you that any way center Yeah. performance there the Is can contribution year. from great. this

Peter Kuipers

but and recurring lines, have. we discussed disclosing that before revenue we product pure We’re statements, think are not – at the the looking software revenue financial we the potentially out breaking I

So in we might choose the to do that future.

Operator

Group. question Matt Hewitt Craig-Hallum the Capital from next comes your line And from of

Lucas Baranowski

Yeah. from keep your to on changes you Baranowski you some for implementations that And quarter, changes? mentioned question This is you customers contracts Lucas begun encourage is, to see benefit Matt a on schedule. my Hewitt. Have to made to those last

Peter Kuipers

both Definitely, we can with operating that in the is the the Yes. that rigor, revenue is and guidance, our results. our together and improving, the we around manage and our handle implementations so we've way quarter in from see showing the what rigor thought initially partners you exceeded first definitely contracts also

Lucas Baranowski

That's an And maybe markets. helpful. update on Okay. then international just

a recently see in update the and Middle Asia us maybe so conference, You you attended on Europe, European the Pacific? East could prospects the just you

Randall Lipps

think there there's cases, and I of consolidation large some same in issues, are the provider there. Well, many networks

platform further good because of little we're over again, have proper kinds we the results to but choices a so And in drug are handling same supply where behind problems yields to kinds a chain and make. these of solution the the visibility, bringing they bit US, environments same

the and continue strategy And East, Middle going in to the UK is so Europe. we feel to help both like that us

retail designed larger for levels robot because pharmacies released retail small pharmacies us that is just our higher able and was Europe to the We really latest also think and we going difference mentioned operations in for small. robot scale market, a really to our make we are many being penetrate RDS in

so the market. full And to us dress allows this

Operator

comes last from your from Dougherty for Company. day Mannheimer Gene the question And &

Gene Mannheimer

developed or Is the for Randy, comment, the that partnering is RDS something that third and -- clarify, last that it the pharmacy. the to you guess that on is with you've building you on call the small are market there just essential, there on just party -- yourselves the robot like? addressable I So European what's

Randall Lipps

That's XX% not retail it's something have developed European to fully and that close we sort even, in the UK France, on just, just XX,XXX probably to there XX,XXX like of operations is penetrated. market maybe Germany, and a in small it's

the ability order to these situations. of in pretty a automation a becoming without they're these So and address retail standard in labor penetration them and operating for it’s fairly scale additional piece equipment adding retail of pharmacies much many of small to

like our feel a move we for it business. was So good

Gene Mannheimer

then with you good augmented the with now looking? Sounds specific introduced you’ve have and as or like selling products the all sales of -- force solutions, new forces sales how a like groups have the headcount dedicated and that is examples, aligned addition. respect with XRX to are your either And that’s how IVX charged particular

Randall Lipps

as KPIs the specific and is just the driving along really level your organization you you'll same total key always base has selling all customers’ about solution, really as both and the alignment. high getting Obviously, customer sales platform force has our had is what whole about customer needs customers approach and about the if different specialist, of with with more our are, the and our it's understand that that's really to will, then those -- contact we customer customers that sending changed, we've So totally organization a evolving their the engagement people Yeah. but need at very and not and

on seeing see more market of all prospect really from our we're we’ll and and our transitions go morphing as taking force to out. come we these so so be good And sales traction that

Operator

remarks. to And for Lipps over Randall I like to Mr. call would back now closing turn the

Randall Lipps

joining See for in quarter, groove Well, was really thank just healthcare and to to really it next today I want us you for a great time. our really a improve employees you have us thank customers the really and the to helping for back solid and everyone.

Operator

this Ladies does today's call. conclude and gentlemen, conference

disconnect. now may You

Omnicell (OMCL) 26 Apr 182018 Q1 Earnings call transcript