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
month of July 2007
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
o
|
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
o
|
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
o
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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
o
|
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
ICON
reports 37% increase in revenues and 41% increase in EPS. Backlog exceeds $1
billion
for
the first time (NASDAQ:ICLR)
Highlights
– Second Quarter 2007
|
*
|
Second
quarter net revenues increased 37% over the prior year, to $147.0
million.
|
|
*
|
Income
from operations increased by 42%, to $16.1
million.
|
|
*
|
Diluted
earnings per share increased by 41%, to 45
cents.
|
|
*
|
Record
$230 million of net new business wins in the quarter, representing
a
book-to-bill ratio of 1.6.
|
Dublin,
Ireland, July 26, 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 second quarter ended
June 30, 2007.
Net
revenues for the quarter were $147.0 million, representing a 36.9% increase
over
net revenues of $107.4 million for the same quarter last year. Income
from operations, after taking non-cash stock compensation charge of $1.4
million, calculated in accordance with SFAS 123(R), was $16.1 million or 10.9%
of revenue, compared to $11.3 million or 10.6% for the same quarter last year.
Net income was $13.3 million or 45 cents per share on a diluted basis, compared
with $9.3 million or 32 cents per share last year.
Year-to-date,
net revenues were $283.1 million, representing a 37.5% increase over the same
period last year. Income from operations, after taking non-cash stock
compensation charge of $2.6 million calculated in accordance with SFAS 123(R),
was $30.8 million or 10.9% of revenue, compared to $21.4 million or 10.4% last
year. Net income was $25.6 million or 86 cents per share, compared with $16.8
million or 59 cents last year.
Days
sales
outstanding, comprising accounts receivable and unbilled revenue less payments
on account, were 53 days at June 30, 2007, a decrease from 59 days at March
31,
2007 and unchanged from 53 days at December 31, 2006.
For
the
quarter ended June 30, 2007, cash provided by operating activities was $22.2
million and capital expenditure was $17.9 million. For the six months, cash
flow
from operating activities was $19.4 million and capital expenditure was $30.4
million. As a result, the company’s cash and short-term investments, net of
debt, amounted to $91.1 million at June 30, 2007, compared to $97.9 million
at
December 31, 2006.
“We
are
delighted with the second quarter’s performance”, commented Chairman Dr. John
Climax. “Revenue growth was very strong at 37%, and we made further progress in
expanding margins which led to net income growth of 43% and EPS growth of 41%.
Excellent net bookings of $230 million brought our backlog to over $1 billion,
another milestone in ICON’s progress, giving us strong confidence in the outlook
for the remainder of the year”
“We
recently completed the acquisition of DOCS International, a leading European
based clinical research staffing organisation, which will be integrated with
ICON’s existing US based staffing business. The combined operation will give our
clients greater flexibility when they run clinical projects internally, and
give
them access to a global pool of talent through one vendor”
The
company will hold its second quarter conference call today, July 26, 2007 at
10:00 EST [15:00 Ireland & UK]. 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 “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 5,150 employees, operating from 63 locations in 33 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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||||||||||||||||
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Consolidated
Income Statements (Unaudited)
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||||||||||||||||
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Three
and Six Months ended June 30, 2007 and June 30,
2006
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||||||||||||||||
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(Dollars,
in thousands, except share and per share data)
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||||||||||||||||
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Three
Months Ended
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Six
Months Ended
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|||||||||||||||
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June
30,
|
June
30,
|
June
30,
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June
30,
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|||||||||||||
|
2007
|
2006
|
2007
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2006
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|||||||||||||
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Gross
Revenue
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207,383
|
153,744
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394,123
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294,388
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||||||||||||
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Subcontractor
costs
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60,336
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46,308
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110,987
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88,457
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||||||||||||
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Net
Revenue
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147,047
|
107,436
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283,136
|
205,931
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||||||||||||
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Costs
and expenses
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||||||||||||||||
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Direct
costs
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83,875
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60,014
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162,432
|
114,718
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||||||||||||
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Selling,
general and administrative
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42,662
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32,397
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81,346
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62,677
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||||||||||||
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Depreciation
and amortization
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4,450
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3,689
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8,606
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7,134
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||||||||||||
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Total
costs and expenses
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130,987
|
96,100
|
252,384
|
184,529
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||||||||||||
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Income
from operations
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16,060
|
11,336
|
30,752
|
21,402
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||||||||||||
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Interest
income (net)
|
1,019
|
938
|
2,063
|
1,585
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||||||||||||
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Income
before provision of income taxes
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17,079
|
12,274
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32,815
|
22,987
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||||||||||||
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Provision
for income taxes
|
3,758
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2,943
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7,186
|
6,073
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||||||||||||
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Minority
interest
|
6
|
34
|
48
|
76
|
||||||||||||
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Net
income
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13,315
|
9,297
|
25,581
|
16,838
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||||||||||||
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Net
income per ordinary share
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||||||||||||||||
|
Basic
|
$ |
0.46
|
$ |
0.33
|
$ |
0.89
|
$ |
0.60
|
||||||||
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Diluted
|
$ |
0.45
|
$ |
0.32
|
$ |
0.86
|
$ |
0.59
|
||||||||
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Weighted
average number of ordinary shares
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||||||||||||||||
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Basic
|
28,684,201
|
28,265,490
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28,624,350
|
28,174,762
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||||||||||||
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Diluted
|
29,685,489
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28,695,530
|
29,597,671
|
28,499,356
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||||||||||||
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ICON
plc
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|||||||||
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Summary
Balance Sheet Data
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|||||||||
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June
30, 2007 and December 31, 2006
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|||||||||
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(Dollars,
in thousands)
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|||||||||
|
June
30,
|
December
31,
|
||||||||
|
2007
|
2006
|
||||||||
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(Unaudited)
|
(Audited)
|
||||||||
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Cash
and short-term investments
|
107,042
|
102,861
|
|||||||
|
Short-term
debt
|
(15,947 | ) | (5,000 | ) | |||||
|
Net
cash
|
91,095
|
97,861
|
|||||||
|
Accounts
receivable
|
105,983
|
108,216
|
|||||||
|
Unbilled
revenue
|
104,740
|
89,977
|
|||||||
|
Payments
on account
|
(87,619 | ) | (90,394 | ) | |||||
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Total
|
123,104
|
107,799
|
|||||||
|
Working
Capital
|
169,744
|
160,321
|
|||||||
|
Total
Assets
|
521,929
|
476,341
|
|||||||
|
Shareholder's
Equity
|
337,479
|
302,738
|
|||||||
|
Source:
|
ICON
plc
|
||||||||
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Contact:
|
Investor
Relations 1-888-381-7923 or
|
||||||||
|
Ciaran
Murray CFO + 353 1 291 2000
|
|||||||||
|
both
at ICON.
|
|||||||||
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http://www.iconclinical.com
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|||||||||
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 | |||
| Date July 25, 2007 | /s/ Ciaran Murray | ||
| Ciaran Murray | |||
| Chief Financial Officer | |||