Good afternoon. My name is Ella and I will be your conference operator today. At this time, I would like to welcome everyone to the Omnicell Fourth Quarter Earnings Conference 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). Thank you. I would now like to turn the call over to Rob Seim, CFO of Omnicell. Sir, you may begin your conference.

Thank you and good afternoon and welcome to the Omnicell 2008 fourth quarter results conference call. Joining me today is Randall Lipps, Omnicell Chairman, President and CEO. You can find our results in the Omnicell fourth quarter press release posted in the Investor Relations section of our website at www.omnicell.com. This call will include forward-looking statements subject to risks, uncertainties, and other factors that could cause the actual results to differ materially from those expressed or implied. For a more detailed description of the risks that impact these forward-looking statements please refer to the information under the heading Risk Factors and under the heading Management's Discussions and Analysis of Financial Conditions and Results of Operations. In the Omnicell Annual Report on Form 10-K filed with the SEC on March 14, 2008, as well as our more recent filings with the SEC. Please be aware that you should not place undue reliance on any forward-looking statements made today. The date of this conference call is January 29, 2009. And all forward-looking statements made on this call are made based on the beliefs of Omnicell’s of this date only. Future events or simply the passage of time may cause these beliefs to change. Finally, this conference call is a property of Omnicell Incorporated and any taping, other duplication or rebroadcast without the expressed written consent of Omnicell is prohibited. During the call today, I will start with an overview of the financial results for the quarter and for the full year of 2008. Followed by Randy, who will cover some of the quarter’s business highlights. I will then discuss our guidance for 2009 and after that we will open the call for your questions. Fourth quarter revenue met objectives and profit exceeded expectations. However, order volume was less than expected as global…

Thanks, Rob. I would like to start by commenting on some of our recent customer wins. We continue to flow significant new orders for some of the best healthcare facilities in the world. The Duke University Health System recently signed a contract for a full suite of medication automation products, which includes our new SinglePointe solution, operating room systems and automated dispensing system. In addition, Emory Healthcare signed a system-wide contract for a wide range of products from simple pharmacy to automated dispensing systems with our highest security technology. We now count ten of the U.S. news and world reports, 15 top ranked hospitals in the United States as customers. Earlier this week, we announced that the University of Florida, Shands Healthcare will be utilizing our operating room supply product, which is a complete physician preference card system and perpetual inventory management system for the operating room, which significantly improves charge capture. Customers such as Duke, Emory and Shands go through lengthy decision processes, where all of the competitive solutions are examined and detailed and we are very pleased to be chosen the supplier of the medication and surgical supply management solution. Over the last 60 days, we have announced new products and our continued steps towards increased customer intimacy that will drive growth in Omnicell once the economic environment improves. We are disappointed with the order volume in Q4 2008, but we continue to position our company to take advantage of the available market when the economy recovers. In December, we announced further extensions to our product line with a version 14 of our software. 14 provides significant enhancements to our operating room system for anesthesiologist including a case management solution that significantly reduces the workflow steps in managing drugs in the operating room setting. Allowing increased flexibility that…

Guidance for 2009 remains at the levels we discussed last week. We expect 2009 revenue to be between $200 and $210 million for the full year of 2009. We expect to take a one-time charge associated with our reduction in workforce completed this week of approximately $2.5 million and we expect $0.30 to $0.35 of non-GAAP EPS excluding stock compensation expense and excluding the one-time charge for the full year 2008. We only see a partial benefit from the staff reduction in Q1 and expect Q1 profit to be in the range of $0.04 to $0.06 per share. Excluding stock compensation and the one-time charge. We see a strong order pipeline with several larger purchases in process, but we do not yet know how the current economic conditions may affect the timing of those and other orders. At this point, we expect this revenue level to maintain backlog at the $110 million level by the end of 2009. We expect to operate through the year with backlog within our stated objective of 6 to 9 months of forward revenue. Now, I would like to open the call to your questions. Operator, if you could open the line.

Steven Crowley – Craig-Hallum Capital:

Newton Juhng – BB&T Capital Markets:

Newton Juhng - BB&T Capital Markets:

Newton Juhng - BB&T Capital Markets:

Newton Juhng - BB&T Capital Markets:

Newton Juhng - BB&T Capital Markets:

After our pretty substantial success in Q3 last year with new customers, those customers scheduled in lot of their installations in Q1, Q2, and Q3. And so at this point in time we really expect the revenue stream to be relatively consistent during the year. And as far as Duke, Duke has for automated dispensing systems is utilizing Omnicell at this point in time. Duke is a very large institution and have contracts with many different vendors and I'm sure their other contracts are not canceled. But for our made dispensing systems they had to put in Omnicell.

Okay, that is helpful. Thank you.

Your next question comes from the line of Gene Mannheimer of Auriga Securities.

Thanks. Congrats on Duke and Emory, two obviously prestigious academic medical centers. Can you distinguish for us at least your view on the financial health of the academics versus community hospitals, for-profit chains and government owned facilities and can you characterize what your exposure is to each of those? Thanks.

You can hear from me, Gene, it's Randy Lipps. I think academic centers have tended to have better financial situations obviously because they have sort of a large doner group and they tend to be sort of a premium healthcare group that people go through when they have unique issues and problems. And I think they will continue to attract those kinds of patients and bring in those kinds. But in the same light, they have been hit with slowdowns and donations from their endowments as well, but they tend to be some of the healthiest I think out there from my perspective and then I think we have a leading edge product in the marketplace today and these types of institutions like I said in the call, 10 out of the 15 best hospitals according to U.S. News and World Report have moved to Omnicell in the past and I think more are going to continue to do that because as they want to be on the best technology available that help them drive safety and cost effectiveness. And so certainly we have always been positioned that way, but our SinglePointe solution really helps us to get there. I think as far as the government is concerned, we saw good sales last year and I think that they're probably less impacted then maybe your general community hospitals. But that is kind of a mixed bag all over the place. We are strong in the government side, so I think that we are looking for good results from that sector again this year, but maybe not as quite good as last year. And the community hospitals are really a mixed bag, some are very healthy some are not quite as healthy and some have slowed down altogether. So, I think that is probably the right picture there for us looking forward.

Okay, thank you.

Sure.

Your next question comes from the line of Leo Carpio of Caris & Company. Leo Carpio – Caris & Company: Hi, good afternoon gentlemen. I have a couple of questions. First regarding these cuts you are making in terms of staffing. If we would hit that inflection point later on the year in that bookings and order flows seem to becoming improving, how quickly can you ramp up to meet the demand?

Well I think we've demonstrated in the past that we are able to ramp up in order to meet installation demand. Remember that if we hit that "inflection point" that you are talking about and the economy improves and customers start ordering really rapidly. They still have an installation cycle, and so they won’t be looking for those orders to be installed instantaneously, and that gives us some time to get more staff on board and trained up to do the installation. Leo Carpio – Caris & Company: Okay. And then turning next to Obama’s Healthcare IT program, any incentives you're going to be providing for the hospitals. Is there anyway your product could be able to be qualified as part of that programs in terms of some loop hole or perhaps some funding that is being provided to the community hospitals I mean to the community clinics or to immune healthcare facilities?

Well, that is unclear as to exactly how that might directly impact our ability to sell our particular product to hospitals, but any help that hospital gets and any type of incentives to get premium dollars from the government for IT helps the hospital financially and then in turn it helps us get our products in because there are so high on the capital list. It's really unfair at this point as to how it might impact us directly, but indirectly we know what’s good for us and what is good for us. Leo Carpio – Caris & Company: Okay. And then my last question regarding the international markets, how much presence do you have in China because last week China announced their expectation to spend about $100 billion plus on their healthcare reform program and since our healthcare system is very centric and financed by the sale of drugs to patients, it seems like your cabinets will be a nice national fit for that country?

Yeah it's Randy I think the China market is certainly an opportunity and it's emerging and we don’t have anything significantly going there and we will just have to see as market that progresses. Leo Carpio – Caris & Company: Okay. Thank you.

Okay.

Your next question comes from the line of Alan Fishman of Thomas Weisel Partners. Alan Fishman – Thomas Weisel Partners: Hey guys. I just have one question for Rob. I guess we saw the DSOs pickup again this quarter, when you say it’s going to work through in the first quarter, where can the DSO settle from here ,in the 70s or 60s range? Where would we be able to consider success there?

Well so first of all we do have this transition issue going to some of the new leasing partners I mentioned the paper work issue that is and caused the DSOs to pick up. We do expect that to work through in the first quarter. But on top of that we realize that our forecast or revenue is down and so the base that the DSO will be calculated against is actually smaller and we’re still working through the collections from prior quarters that were based on a higher level of revenue. So, the actual DSOs will step down through the year and we will get back, we anticipate, to the mid-60s level that we had been operating at and it will probably be in the second half of the year.

Okay. Thank you.

I have no further questions at this time. Mr. Lipps you have [close] further remarks.

Well operator could you just make one more call for questions and then we will go into closing remarks.

Yes sir. (Operator Instructions). And you do have a question from the line of Steven Crowley of Craig-Hallum Capital. Steven Crowley – Craig Hallum Capital: Yes, Rob. One follow-up question in the conference call we had a week or so ago you made some reference to long-term operating margins and what you were trying to reconstruct here. Could you talk to us about some of your operating margin objectives maybe over the say the near term 2009 and then that is implied by your guidance obviously, but as we would look out, what kind of recovery and where can we get back to and what are the key components to getting back to that target level?

Steve we have not abandoned our goal to be at 15% operating margins, we've been there before and we will be there again. With our revenue levels at 200 to 210, we won't be quite at that operating margin level of course over the near term future within our guidance range. We do expect the market to recover to come back after we get through these economic turmoil. And we do expect our revenues to be able to climb again to where we have been through 2008 level, and certainly once we get backup to that level, we will have a, we will be in a much better position to hit 15% operating margin. When exactly that will be kind of depends on how the economy goes.

Implied by the response, that there has been no real significant change to competitive dynamics, deal dynamics. The question I am getting on somewhat regular basis, are we seeing this environment cultivate anything strange or different on the pricing front? You just had some recent deals given out, so you've got an ongoing experience that has been pricing, have you seen any thing strange there or any thing strange out in the marketplace?

Pricing is pretty consistent in our industry. There is quite a bit of software value in these systems and the customers recognize it. There isn't a lot of odd or strange competitive dynamics going on in the industry, the deals are competitive they are all competitive, and they been competitive for multiple years. So, nothing has really changed there.

Thanks for taking the follow-up.

I’m showing no further questions.

Okay. Well this is Randy Lipps. I'd like to just summarize the call by reiterating we believe demand for our products will eventually return to the levels we have seen previously. We're profitable now and expect to continue to be profitable and cash flow positive in 2009. And we're making the tough decisions to manage our expenses and making sure our leasing partners are intact. And we continue to bring new innovative products to the market. Thanks for joining us today.

This concludes today’s Omnicell fourth quarter earnings call. You may now disconnect.