Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company's segments using information about its revenues, gross profit, and income from operations. Such evaluation excludes general corporate-level costs that are not specific to either of the reportable segments and are managed separately at the corporate level. Corporate-level costs include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. The two operating segments, which are the same as the Company's two reportable segments, are as follows:

Automation and Analytics

The Automation and Analytics segment is organized around the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems, and related software. The Automation and Analytics products are designed to enable the Company's customers to enhance and improve the effectiveness of the medication-use process, the efficiency of the medical-surgical supply chain, overall patient care and clinical and financial outcomes of medical facilities. Through modular configuration and upgrades, the Company's systems can be tailored to specific customer needs. The financial results of Aesynt acquired in the first quarter of 2016 are included in the Automation and Analytics segment.

Medication Adherence

The Medication Adherence segment includes primarily the manufacturing and selling of consumable medication blister cards, packaging equipment and ancillary products and services. These products are used to manage medication administration outside of the hospital setting and include medication adherence products sold under the brand names MTS Medication Technologies ("MTS"), Surgichem Limited ("Surgichem"), and under the Omnicell and SureMed brands. MTS products consist of proprietary medication packaging systems and related products for use by institutional pharmacies servicing long-term care, and correctional facilities or retail pharmacies serving patients in their local communities.

The following table summarizes the financial performance of the Company's reportable segments, including a reconciliation of income from segment operations to income from total operations:

	Three months ended
	June 30, 2016							June 30, 2015
	Automation and Analytics		Medication Adherence		Total			Automation and Analytics		Medication Adherence		Total
	(In thousands)
Revenues	$	148,660	$	24,247	$	172,907		$	88,701	$	24,087	$	112,788
Cost of revenues	78,366		16,524		94,890			39,403		15,923		55,326
Gross profit	70,294		7,723		78,017			49,298		8,164		57,462
Operating expenses	49,780		5,771		55,551			25,978		5,910		31,888
Income from segment operations	$	20,514	$	1,952	$	22,466		$	23,320	$	2,254	$	25,574
Corporate costs					22,584							13,150
(Loss) Income from operations					$	(118	)					$	12,424

	Six months ended
	June 30, 2016						June 30, 2015
	Automation and Analytics		Medication Adherence		Total		Automation and Analytics		Medication Adherence		Total
	(In thousands)
Revenues	$	297,605	$	46,306	$	343,911	$	181,480	$	47,529	$	229,009
Cost of revenues	155,573		30,376		185,949		78,255		31,607		109,862
Gross profit	142,032		15,930		157,962		103,225		15,922		119,147
Operating expenses	101,985		11,382		113,367		54,567		12,251		66,818
Income from segment operations	$	40,047	$	4,548	$	44,595	$	48,658	$	3,671	$	52,329
Corporate costs					42,861						29,526
Income from operations					$	1,734					$	22,803

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Significant customers

There were no customers that accounted for more than 10% of our total revenues for the three and six months ended June 30, 2016 and June 30, 2015

Geographical Information

Revenues

	Three months ended
	June 30, 2016		June 30, 2015
	(In thousands)
United States	$	145,988	$	95,147
Rest of world (1)	26,919		17,641
Total revenues	$	172,907	$	112,788

	Six months ended
	June 30, 2016		June 30, 2015
	(In thousands)
United States	$	289,481	$	192,970
Rest of world (1)	54,430		36,039
Total revenues	$	343,911	$	229,009

⁽¹⁾    No individual country represented more than 10% of the respective totals.

  Property and equipment, net

	June 30, 2016		December 31, 2015
	(In thousands)
United States	$	36,727	$	29,506
Rest of world (1)	3,776		2,803
Total property and equipment, net	$	40,503	$	32,309

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⁽¹⁾    No individual country represented more than 10% of the respective totals.

Property and equipment, net is attributed to the geographic location in which it is located.