OMCL Omnicell Inc.

Risks

• Unfavorable economic and market conditions, a decreased demand in the capital equipment market, and uncertainty regarding the rollout of government legislation in the healthcare industry could adversely affect our operating results.*
• If we fail to develop new products or enhance our existing products to react to rapid technological change and market demands in a timely and cost-effective manner, or if more newly developed solutions, such as our XT Series, XR2 Automated Central Pharmacy System, and IVX Workflow, are not adopted in the same time frame and/or quantity as we anticipate, this could have a material adverse effect on our business, financial condition, and results of operations.*
• We operate in highly competitive markets, and we may be unable to compete successfully against new entrants and established companies with greater resources and/or existing business relationships with our current and potential customers.*
• The transition to selling more products which include a software as a service or solution as a service subscription presents a number of risks.
• When we experience delays in installations of our medication management automation solutions or our more complex medication packaging systems, and such delays result in delays in our ability to recognize revenue, our competitive position, results of operations, and financial condition could be harmed.*
• We are subject to laws, regulations, and other legal obligations related to privacy, data protection, and information security, and the costs of compliance with, and potential liability associated with, our actual or perceived failure to comply with such obligations could harm our business.
• If we experience a significant disruption in our information technology systems, breaches of data security, or cyber-attacks on our systems or solutions, our business could be adversely affected.*
• We have incurred substantial debt, which could impair our flexibility and access to capital and adversely affect our financial position.*
• We may fail to realize the potential benefits of acquired businesses which could negatively affect our business, financial condition, and operating results.
• If goodwill or other intangible assets that we recorded in connection with the Aesynt, Ateb, and InPharmics acquisitions, or have recorded in connection with prior acquisitions, become impaired, we could be required to take significant charges against earnings.
• Changing customer requirements could decrease the demand for our products and services, and our new product solutions may not achieve market acceptance.
• The healthcare industry faces changes to healthcare legislation and other healthcare reform, as well as financial constraints and consolidation, which could adversely affect the demand for our products and services.
• Government regulation of the healthcare industry could reduce demand for our products, or substantially increase the cost to produce our products.
• Our software products are complex and may contain defects, which could harm our reputation, results of operations, and financial condition.
• Our international operations may subject us to additional risks that can adversely affect our operating results.*
• In the past, we have experienced substantial fluctuations in customer demand, and we cannot be sure that we will be able to respond proactively to future changes in customer demand.
• Covenants in our A&R Credit Agreement restrict our business and operations in many ways, and if we do not effectively manage our compliance with these covenants, our financial conditions and results of operations could be adversely affected.
• If we are unable to recruit and retain skilled and motivated personnel, our competitive position, results of operations, and financial condition could be harmed.*
• Our failure to protect our intellectual property rights could negatively affect our ability to compete.
• Our quarterly operating results may fluctuate and may cause our stock price to decline.*
• If we are unable to maintain our relationships with group purchasing organizations (“GPOs”) or other similar organizations, we may have difficulty selling our products and services to customers represented by these organizations.
• If we are not able to supply the demand from our institutional and retail pharmacy customers on schedule and with quality consumable medication packaging products, or if we are otherwise unable to maintain our relationships with major institutional pharmacies, they may use alternative means to distribute medications to their customers and our revenue from sales of blister cards and other consumables may decline.*
• If we are unable to successfully interface our automation solutions with the existing information systems of our customers, they may choose not to use our products and services.
• We depend on a limited number of suppliers for our products, and our business may suffer if we were required to change suppliers to obtain an adequate supply of components, equipment, and raw materials on a timely basis.*
• Failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could cause our stock price to decline.
• If the market price of our common stock continues to be highly volatile, the investment value of our common stock may decline.*
• The United Kingdom’s recent withdrawal from the European Union could adversely affect us.
• Our U.S. government lease agreements are subject to annual budget funding cycles and mandated unilateral changes, which may affect our ability to enter into such leases or to recognize revenues, and sell receivables based on these leases.
• If we fail to manage our inventory properly, our revenue, gross margin, and profitability could suffer.
• Intellectual property claims against us could harm our competitive position, results of operations, and financial condition.
• Product liability claims against us could harm our competitive position, results of operations and financial condition.
• We are dependent on technologies provided by third-party vendors, the loss of which could negatively and materially affect our ability to market, sell, or distribute our products.
• Complications in connection with our ongoing business information system upgrades, including those required to transition acquired entities onto information systems already utilized, and those implemented to adopt new accounting standards, may impact our results of operations, financial condition, and cash flows.
• Outstanding employee stock options have the potential to dilute stockholder value and cause our stock price to decline.
• Raising additional capital may cause dilution to our existing stockholders, restrict our operations or harm our business, financial condition, and results of operations.*
• Changes in our tax rates, exposure to additional tax liabilities, or the adoption of new tax legislation could adversely affect our business and financial condition.*
• Catastrophic events may disrupt our business and harm our operating results.*
• Anti-takeover provisions in our charter documents and under Delaware law, and any stockholders' rights plan we may adopt in the future, make an acquisition of us, which may be beneficial to our stockholders, more difficult.