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ICON Reports First Quarter 2011 Revenue up 5% to $229 Million and EPS of 21c

^{Published on 2011-04-21 03:21:03 - Market Wire}
 

DUBLIN--([ BUSINESS WIRE ])--ICON (NASDAQ: ICLR) (ISIN:IE0005711209), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the first quarter ended March 31, 2011.

"With strong gross bookings of $329m, a strengthening pipeline of new opportunities and the Central Lab progressing as planned, we believe we are on track for a return to growth in the second half."

Net revenue for the quarter was $229 million, an increase of 4.6% on the prior year, a constant currency increase year on year of 5.5%.

Before restructuring charges, income from operations was $16 million or 7% of revenue, compared to $26.8 million or 12.2% for the same quarter last year. Excluding restructuring charges, net income was $12.8 million or 21 cents per share on a diluted basis, compared with $22.2 million or 37 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 49 days at March 31, 2011, compared to 37 days at December 31, 2010.

For the quarter ended March 31, 2011, cash used in operating activities was $5.3 million and capital expenditure was $6 million. In addition ICON paid an initial cash consideration of $27.7m for the acquisition of Oxford Outcomes. As a result, the companya™s net cash amounted to $232 million at March 31, 2011, compared to net cash of $256 million at December 31, 2010.

a2011 has started in line with expectations.a commented CEO Peter Gray. aWith strong gross bookings of $329m, a strengthening pipeline of new opportunities and the Central Lab progressing as planned, we believe we are on track for a return to growth in the second half.a

During the quarter the company undertook a number of cost reduction steps which led to restructuring costs of $5 million. US GAAP income from operations after these items amounted to $11 million or 4.8% of revenue. US GAAP net income for the quarter is $8.3 million or 14 cents per share.

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including non-GAAP operating and net income and non-GAAP diluted earnings per share. While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, ICON believes certain non-GAAP information is useful to investors for historical comparison purposes.

The company will hold its first quarter conference call today, April 21, 2011 at 9:00 EST [14:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at [ http://www.iconplc.com ]. A recording will also be available on the website for 90 days following the call. In addition, a calendar of company events, including upcoming conference presentations, is available on our website, under aInvestorsa. This calendar will be updated regularly.

The statements made in this Press Release may contain forward-looking statements that involve a number of risks and uncertainties. In addition to the matters described in this Press Release, the ability to maintain large client contracts or enter into new contracts, maintain client relationships and the ability to manage the opening of new offices, the integration of new business mergers and acquisitions, as well as other risks and uncertainties detailed from time to time in SEC reports filed by ICON, including its Form 20-F, F-1, S-8 and F-3, may affect the actual results achieved by ICON. ICON disclaims any intent or obligation to update these forward-looking statements.

ICON plc is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company specialises in the strategic development, management and analysis of programs that support clinical development - from compound selection to Phase I-IV clinical studies. With headquarters in Dublin, Ireland, ICON currently, operates from 77 locations in 39 countries and has approximately 7,700 employees. Further information is available at [ www.iconplc.com ].

Source: ICON plc

ICON/ICLR-F