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ICON reports 35% increase in revenue and 45% increase in operating income

October 21, 2008

ICON reports 35% increase in revenue and 45% increase in operating income (NASDAQ:ICLR) (ISIN:IE0005711209)

 Highlights – Third Quarter Fiscal 2008 

  • Net revenues increased 35%, to $225.5 million.  
  • Income from operations increased by 45%, to $27.1 million.  
  • Operating margin increased to 12% from 11.2%
  • Diluted earnings per share increased by 46% to 35 cents. 
  • Net new business wins were $350 million, a book-to-bill of 1.6x.

Dublin, Ireland, October 21, 2008 – 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 its third quarter ended September 30, 2008.  

Net revenues for the quarter were $225.5 million, representing a 35.1% increase over net revenues of $166.9 million for the comparative quarter last year.  Year-to-date, net revenues were $645.2 million, representing a 43.4% increase over the same period last year.   

Income from operations was $27.1 million, compared to $18.7 million for the same quarter last year.  Operating margin increased to 12.0% from 11.2%. Net income was $21.4 million or 35 cents per share on a diluted basis, compared with $14.5 million or 24 cents per share last year.  

Year-to-date income from operations was $73.0 million, compared to $49.5 million last year representing an operating margin increase to 11.3% from 11.0%. Net income was $57.1 million or 93 cents per share, compared with $40.1 million or 67 cents last year. 

Days sales outstanding were 54 days at September 30, 2008, compared to 66 days at December 31, 2007.  

For the quarter ended September 30, 2008, cash provided by operating activities was $58 million and capital expenditure was $18.1 million.  As a result, the company's net cash amounted to $55.6 million at September 30, 2008, compared to net cash of $6.9 million at June 30, 2008.   

"We are pleased with our continued strong progress" said Chairman, Dr. John Climax, " Revenues and operating profits for the first nine months of 2008, at $645 million and $73 million respectively, already exceed those achieved in all of 2007. Year-to-date new business bookings, at over $1bn, have also surpassed those of the full year 2007 "

Commenting on the quarter, CEO Peter Gray said " With revenues for the quarter up 35%, margins up to 12%, EPS up 46%, and strong operating cash generation, we are very satisfied with our performance in the quarter. ICON's strategy of listening to its customers and delivering the services they need, where and when they need them, continues to be validated. With net new business awarded in the quarter of $350 million and our backlog now at over $1.74 billion, we are confident in the outlook for the remainder of 2008 and view 2009 with optimism" 

The company will hold its third quarter conference call today, October 21, 2008 at 9:00 EST [14:00 Ireland & UK].  This call and linked slide presentation can be accessed live from our website at 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 “Investors”.  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.

The financial information presented herein has been prepared in accordance with U.S. GAAP. 

ICON plc is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company specializes 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 71 locations in 38 countries and has approximately 6,600 employees. Further information is available at www.iconplc.com.

Source: ICON plc

Contact : Investor Relations 1-888-381-7923 or

Ciaran Murray CFO + 353 –1-291-2000

Both at ICON.      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ICON plc

 

 

 

 

 

 

 

 

 

Consolidated Income Statements (Unaudited)

 

 

 

 

 

 

 

 

 

Three and Nine Months ended September 30, 2008 and September 30, 2007

 

 

(Dollars, in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Nine Months Ended

 

 

 

September 30,

September 30,

 

September 30,

September 30,

 

 

 

2008

2007

 

2008

2007

 

 

 

 

 

 

 

 

 

 

Gross Revenue

313,637

231,819

 

914,082

625,942

 

 

 

 

 

 

 

 

 

 

Subcontractor costs

88,126

64,903

 

268,927

175,890

 

 

 

 

 

 

 

 

 

 

Net Revenue

225,511

166,916

 

645,155

450,052

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Direct costs

127,948

91,675

 

364,113

254,107

 

 

Selling, general and administrative

62,494

51,518

 

187,328

132,864

 

 

Depreciation and amortization

7,937

5,020

 

20,676

13,626

 

 

 

 

 

 

 

 

 

 

Total costs and expenses

198,379

148,213

 

572,117

400,597

 

 

 

 

 

 

 

 

 

 

Income from operations

27,132

18,703

 

73,038

49,455

 

 

 

 

 

 

 

 

 

Interest (expense) income

(224)

16

 

(743)

2,079

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

26,908

18,719

 

72,295

51,534

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

5,355

4,158

 

14,493

11,344

 

 

Minority interest

173

60

 

707

108

 

 

 

 

 

 

 

 

 

 

Net income

21,380

14,501

 

57,095

40,082

 

 

 

 

 

 

 

 

 

 

Net income per ordinary share

 

 

 

 

 

 

 

Basic

$0.37

$0.25

 

$0.98

$0.70

 

 

 

 

 

 

 

 

 

 

Diluted

$0.35

$0.24

 

$0.93

$0.67

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares

 

 

 

 

 

 

 

Basic

58,451,960

57,521,452

 

58,156,869

57,339,596

 

 

 

 

 

 

 

 

 

 

Diluted

61,847,265

59,652,914

 

61,357,893

59,429,170

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

ICON plc

 

 

 

 

 

Summary Balance Sheet Data

 

 

 

 

 

September 30, 2008 and December 31, 2007

(Dollars, in thousands)

 

 

 

 

 

 

 

 

 

September 30,

December 31,

 

 

 

2008

2007

 

 

 

(Unaudited)

(Audited)

Cash and short-term investments

 

135,154

 

118,633

Debt

 

 

(79,547)

 

(94,829)

Net cash

 

 

55,607

 

23,804

 

 

 

 

 

 

Accounts receivable

 

 

179,553

 

129,865

Unbilled revenue

 

 

138,864

 

144,661

Payments on account

 

 

(129,030)

 

(96,553)

Total

 

 

189,387

 

177,973

 

 

 

 

 

 

Working Capital

 

 

204,755

 

193,271

 

 

 

 

 

 

Total Assets

 

 

808,656

 

693,138

 

 

 

 

 

 

Shareholder's Equity

 

 

452,077

 

388,400

 

 

 

 

 

 

 

 

 

 

 

 

Source:

 

ICON plc

 

 

 

 

 

 

 

 

Contact:

 

Investor Relations 1-888-381-7923 or

 

 

Ciaran Murray CFO + 353 1 291 2000

 

 

 

both at ICON.

 

 

 

 

 

 

 

 

 

 

www.iconplc.com

 

 

 

 

 

 

 

 



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