Omnicell, Inc. (NASDAQ: OMCL) stock fell 13.19% on July 11th, 2019 and continued its bearish momentum on July 12th, 2019 (as of 11:38 am GMT-4; Source: Google finance) falling over after Kaplan Fox & Kilsheimer LLP has been investigating claims on behalf of investors who purchased shares of OMCL. On July 11, 2019, Investor’s Business Daily reported that GlassHouse Research “accused the medical stock of ‘accounting gimmicks,’ including prematurely recording revenue of $38 million.” The report also alleged that new product lines had been pushed onto customers, who were hesitant to purchase more inventory because of implementation issues, and that the Company will need to write off $23 million in obsolete inventory. “Significant declines in revenue and earnings await Omnicell as the company has obfuscated its financials by prematurely recognizing revenue in prior periods and failing to write-off legacy inventory,” GlassHouse reportedly stated in its report initiating coverage of Omnicell stock. Meanwhile, Glancy Prongay & Murray LLP announced an investigation on behalf of Omnicell, Inc. investors concerning the Company and its officers’ possible violations of federal securities laws.
Moreover, Non-GAAP revenues for the first quarter of 2019 were $202.5 million, which is up 10.9%, from the first quarter of 2018. Non-GAAP net income for the first quarter of 2019 was $25.8 million compared to non-GAAP net income of $11.5 million for the first quarter of 2018.
For the second quarter of 2019, the Company expects non-GAAP total revenues to be between $211 million and $217 million. The Company expects non-GAAP product revenues to be in the range of $153 million and $158 million, and non-GAAP service revenues to be in the range of $58 million and $59 million. The Company expects second quarter 2019 non-GAAP earnings to be in the range of $0.61 and $0.66 per share.
For the year 2019, the Company expects product bookings to be in the range of n $745 million and $780 million. The Company expects non-GAAP total revenues to be in the range of $880 million and $900 million. The Company expects non-GAAP product revenues to be in the range of $652 million and $668 million, and non-GAAP service revenues to be in the range of $228 million and $232 million. The Company expects 2019 non-GAAP earnings to be in the range of $2.62 and $2.82 per share.
Additionally, OMCL has announced that Inova in Virginia has been chosen for the enhancement of control, efficiency and safety of its medication management processes with Omnicell’s medication dispensing cabinet automation and IV compounding solutions, which is part of Omnicell’s industry leading medication management automation platform. Omnicell solutions, including IV robotics for hazardous and non-hazardous compounding in Central Pharmacy and medication dispensing cabinets in patient care areas, will underpin streamline workflows, improve medication management, and free up staff for more clinically focused activities.