Highlights – First Quarter Fiscal 2007
- First quarter net revenues increased 38% over the comparative quarter, to $136.1 million.
- Income from operations increased by 46%, to $14.7 million.
- Diluted earnings per share increased by 56%, to 42 cents.
- Record $223 million of net new business wins in the quarter, representing a book-to-bill ratio of 1.6.
- Revenue guidance increased from $530 - $550 million, to $560 - $580 million for 2007.
Dublin, Ireland, April 24, 2007 – ICON (NASDAQ: ICLR), 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, 2007.
Net revenues for the quarter were $136.1 million, representing a 38.2% increase over net revenues of $98.5 million for the comparative quarter last year.
Income from operations, after taking non-cash stock compensation charge of $1.2 million calculated in accordance with SFAS 123®, was $14.7 million or 10.8% of revenue, compared to $10.1 million or 10.2% for the same quarter last year. Net income was $12.3 million or 42 cents per share on a diluted basis, compared with $7.5 million or 27 cents per share last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 59 days at March 31, 2007, an increase from 53 days at December 31, 2006.
For the quarter ended March 31, 2007, cash used in operating activities was $2.8 million and capital expenditure was $12.5 million. As a result, the company's cash and short-term investments, net of debt, amounted to $84.4 million at March 31, 2007, compared to $97.9 million at December 31, 2006.
“It has been an excellent start to 2007”, commented Chairman Dr. John Climax. “Business authorisations have been strong with $223 million of net business awarded to ICON in the quarter, and both operating income and EPS again tracked ahead of revenue growth. Business flows continue to be positive and we look forward with confidence to the remainder of 2007. Accordingly we have raised our 2007 revenue guidance to $560 - $580 million”
The company will hold its first quarter conference call today, April 24, 2007 at 09:00 EST [14:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at www.iconclinical.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. ICON teams have successfully conducted over 1,900 development projects and over 2,300 consultancy engagements across all major therapeutic areas. ICON currently has approximately 4,500 employees, operating from 52 locations in 30 countries. Further information is available at www.iconclinical.com.
Source: ICON plc
Contact : Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 –1-291-2000
Both at ICON.
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| ICON plc |
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| Consolidated Income Statements (Unaudited) |
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| Three Months ended March 31, 2007 and March 31, 2006 |
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| (Dollars, in thousands, except share and per share data) |
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| Three Months Ended |
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| March 31, |
| March 31, |
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| 2007 |
| 2006 |
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| Gross Revenue | 186,740 |
| 140,644 |
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| Subcontractor costs | 50,651 |
| 42,149 |
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| Net Revenue | 136,089 |
| 98,495 |
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| Costs and expenses |
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| Direct costs | 78,557 |
| 54,704 |
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| Selling, general and administrative | 38,684 |
| 30,280 |
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| Depreciation and amortization | 4,156 |
| 3,445 |
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| Total costs and expenses | 121,397 |
| 88,429 |
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| Income from operations | 14,692 |
| 10,066 |
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| Interest income (net) | 1,044 |
| 647 |
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| Income before provision of income taxes | 15,736 |
| 10,713 |
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| Provision for income taxes | 3,428 |
| 3,130 |
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| Minority interest | 42 |
| 42 |
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| Net income | 12,266 |
| 7,541 |
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| Net income per ordinary share |
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| Basic | $0.43 |
| $0.27 |
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| Diluted | $0.42 |
| $0.27 |
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| Weighted average number of ordinary shares |
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| Basic | 28,564,498 |
| 28,084,034 |
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| Diluted | 29,508,662 |
| 28,219,068 |
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| ICON plc | |||||
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| Summary Balance Sheet Data | |||||
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| March 31, 2007 and December 31, 2006 | |||||
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| March 31, |
| December 31, |
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| 2007 |
| 2006 |
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| (Unaudited) |
| (Audited) |
| Cash and short-term investments |
| 89,434 |
| 102,861 | |
| Short-term debt |
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| (5,000) |
| (5,000) |
| Net cash |
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| 84,434 |
| 97,861 |
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| Accounts receivable |
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| 110,211 |
| 108,216 |
| Unbilled revenue |
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| 90,065 |
| 89,977 |
| Payments on account |
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| (77,454) |
| (90,394) |
| Total |
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| 122,822 |
| 107,799 |
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| Working Capital |
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| 167,716 |
| 160,321 |
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| Total Assets |
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| 476,131 |
| 476,341 |
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| Shareholder's Equity |
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| 319,851 |
| 302,738 |
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| Source: |
| ICON plc |
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| Contact: |
| Investor Relations 1-888-381-7923 or | |||
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| Ciaran Murray CFO + 353 1 291 2000 |
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| both at ICON. |
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