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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 under
the Securities Exchange Act of 1934
For the quarterly period ended August 31, 2004
ICON plc
(Registrant's name)
0-29714
(Commission file number)
South County Business Park, Leopardstown, Dublin 18, Ireland.
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Yes X No ____
Indicate by check mark whether the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ____ No X
Indicate by check mark whether the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ____ No X
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ____ No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):82 N/A
Other Events.
The registrant hereby incorporates by reference the press release attached
hereto as Exhibit 99.1 into this report.
Financial Statements and Exhibits.
(c) The following Exhibits are filed as part of this report:
EXHIBIT NO. DESCRIPTION
99.1 Press Release.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ICON plc
September 28, 2004 /s/ Sean Leech
- ------------------ --------------------------
Date Sean Leech
Chief Financial Officer
Exhibit 99.1
ICON Reports Strong Results with 24% increase in operating income in First
Quarter FY 2005 (NASDAQ:ICLR)
Highlights - First Quarter Fiscal 2005
* First Quarter net revenues increased 14% over the first quarter of fiscal
2004 to $78.3 million.
* Income from operations increased by 24% over the first quarter of fiscal
2004 to $9.5 million.
* Diluted earnings per share increased 18% for the first quarter to 52 cents
compared to 44 cents for the same quarter last year.
* $93 million of gross ($46 million net) new business awarded to ICON during
the quarter.
Dublin, Ireland, September 28, 2004 - ICON plc (NASDAQ: ICLR), a global contract
clinical research organisation, which has over 2,550 employees providing
services to the pharmaceutical, biotech and medical device industries from 35
locations in 21 countries worldwide, today reported the financial results for
its first quarter ended August 31, 2004.
Net revenues for the quarter were $78.3 million, representing a 14% increase
over net revenues of $68.9 million for the same quarter last year. Excluding the
impact of acquisitions, revenue growth was 8% over the same quarter last year.
Income from operations was $9.5 million, which represents an increase of 24%
from the $7.6 million reported for the first quarter last year. Operating margin
for the quarter was 12.1%, compared with 11.1% for the equivalent period last
year. Net income for the quarter was $7.3 million or 52 cents per share, on a
diluted basis, compared with $5.6 million or 44 cents per share for the first
quarter last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less
payments on account, were 59 days at August 31, 2004, a decrease from the 60
days reported at May 31, 2004.
For the quarter ending August 31, 2004, capital expenditure was $4.5 million and
$9.9 million was paid in relation to the acquisition of 70% of the common stock
of Beacon Biosciences Inc, on July 1, 2004. As a result, the company's net cash,
short-term debt and short-term investments were $65.6 million at August 31,
2004, compared to $78.8 million at May 31, 2004.
"We are pleased with the performance in our first quarter of fiscal 2005",
commented Chairman Dr. John Climax. "Our operating margins were strong, earnings
per share increased by 18% and we made further progress on our strategic
development with the acquisition of a 70% interest in Beacon Biosciences, Inc".
Commenting on the outlook, Dr Climax said "As previously indicated, due to the
high level of recent delays and cancellations we expect a small sequential
decline in revenues for our second quarter of Fiscal 2005. We remain confident
in the outlook for the business and anticipate a re-establishment of revenue
growth in the second half of the year."
The company will hold its first quarter conference call today, September 28,
2004 at 08:00 EST [13:00 Ireland & UK / 14:00 CET]. This call and linked slide
presentation can be accessed live from our website at
http://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
"shareholders services". 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.
Source: ICON plc
Contact : Investor Relations 1-888-381-7923 or Sean Leech CFO + 353 -1-291-2000
Both at ICON.
http://www.iconclinical.com
ICON plc
Consolidated Income Statements
(Unaudited)
Three months ended August 31, 2004 and 2003
(Dollars, in thousands, except share and per share data)
Three Months Ended
Aug 31, Aug 31,
2004 2003
Gross Revenue $117,195 106,177
Subcontractor costs 38,856 37,242
------------ -------------
Net Revenue 78,339 68,935
Costs and expenses
Direct costs 42,453 37,699
Selling, general and administrative 23,339 21,025
Depreciation 3,062 2,589
------------ -------------
Total costs and expenses 68,854 61,313
Income from operations 9,485 7,622
Interest income (net) 164 47
------------ -------------
Income before provision of income taxes 9,649 7,669
Provision for income taxes 2,322 2,065
Minority Interest 22 -
------------ -------------
Net income 7,305 5,604
============ =============
Net income per ordinary share
Basic $0.53 $0.46
------------ -------------
Diluted $0.52 $0.44
------------ -------------
Weighted average number of ordinary shares
Basic 13,837,986 12,153,772
Diluted 14,105,288 12,606,971
ICON plc
Summary Balance Sheet Data
August 31, 2004 and May 31, 2004
(Dollars, in thousands)
August 31, May 31,
2004 2004
(unaudited) (audited)
Cash and short-term investments 72,573 78,763
Short-term debt (7,000) -
Net cash 65,573 78,763
Accounts receivable 70,125 74,079
Unbilled revenue 66,984 59,861
Payments on account (61,376) (61,960)
Total 75,733 71,980
Working Capital 110,411 113,813
Total assets 341,016 335,323
Shareholder's equity 222,454 216,760
Source: ICON plc
Contact: Investor Relations 1-888-381-7923 or
Sean Leech CFO + 353 1 291 2000
both at ICON.
http://www.iconclinical.com