Omnicell shares plunge on 2008 guidance reduction

The stock dropped $3.97, or 23.4 percent, to $13. Earlier, shares fell 52 cents, or 3 percent, to close at $16.97. They have ranged from $15.87 to $31.12 over the past year.

Omnicell reported income of $3.7 million, or 10 cents per share, compared with $4 million, or $13 cents per share, in the year-ago period.

Because Omnicell partially reversed a valuation allowance in the fourth quarter, the company's effective tax rate in the first quarter was 40.5 percent. In the year-ago period, the company's effective tax rate was 6 percent.

Excluding stock-based compensation and other items, the company recorded an adjusted profit of $6.8 million, or 19 cents per share.

Revenue climbed to $62.1 million from $48.2 million.

Analysts polled by Thomson Financial projected income of 18 cents per share on revenue of $61.2 million.

In a conference call with investors after the earnings announcement, Omnicell Chief Financial Officer Rob Seim forecast 2008 adjusted income guidance in a range of 65 cents to 70 cents per share. The company previously predicted income of 85 cents to 88 cents per share.

Analysts project income of 87 cents per share.

Seim also forecast revenue growth of 17 percent to 20 percent, compared with a previous estimate of 25 percent to 28 percent.