Omnicell, Inc. (NASDAQ:OMCL) Q2 2018 Earnings Conference Call - Final Transcript
Jul 26, 2018 • 04:30 pm ET
Good day. My name is Brendon and I'll be your conference operator today. At this time, I would like to welcome everyone to the Omnicell Second Quarter 2018 Earnings 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. (Operator Instructions)
I would now like to turn the call over to Mr. Peter Kuipers, CFO.
Thank you. Good afternoon and welcome to the Omnicell second quarter 2018 results conference call. Joining me today is Randall Lipps, Omnicell founder, Chairman, President and CEO.
(Forward-Looking Cautionary Statements)
Finally, this conference call is the property of Omnicell, Inc. and any taping, audio duplication or rebroadcast without the expressed written consent of Omnicell is prohibited.
Randall will first provide an update on our business, then I will cover our results for the second quarter of 2018 and our guidance for the year. Our second quarter financial results are included in our earnings announcement which was released earlier today and is posted in the IR section of our website at omnicell.com. Our prepared remarks will also be posted in the same section.
Let me now turn over the call to Randall.
Good afternoon, everyone. We're very pleased to update you on the Company's performance for the second quarter of 2018 as the business continued to gain further great momentum in innovation, customer acquisitions, and financial results.
We are excited about our advancements in innovation as we continue to build and expand our industry-leading medication management platform with the goal of achieving the fully digitized and automated pharmacy.
In December last year, we announced the XR2 Automated Central Pharmacy System and the IVX Workflow powered by the IVX Cloud, the leading edge robotic XR2 is a significant step towards the fully automated pharmacy across the full range of customer environments. Beyond upgrade potential, the XR2 represents significant Greenfield opportunities. IVX is a significant technological advancement for IV workflow processes, enabling pharmacies to safely and efficiently compound and prepare IV treatment.
We are pleased to communicate that the general availability for both XR2 and IVX Workflow was achieved ahead of schedule in June, a little earlier than expected, and both of these products are accepted and live at our first customer sites.
During the second quarter, we entered into additional noncancelable commercial agreements for both the XR2 and the IVX Workflow products and we continue to see a healthy build in the commercial pipeline. As we have stated before, the expected revenue contribution from the XR2 and the IVX Workflow products to 2018 revenue is modest, given the timing of the flow from bookings to backlog and finally, to revenue.
Next, I'd like to discuss the momentum in customer acquisitions. In summary, it's clear, we are continuing to win in the marketplace. During the second quarter of 2018, our new and competitive conversions were strong at 27% of total Company bookings. This is one indicator of the strength of the business. Over 75% were competitive