ICON reports net revenues of $219 million for first-quarter 2010

Apr 27 2010

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, 2010.

“The breath of his industry experience, gained while a partner with PWC, will enable him to bring fresh perspectives on our market and will complement the strengths and talents of our existing board members.”

Net revenues for the quarter were $219 million, in line with net revenues of $219.8 million for the comparative quarter last year.

Income from operations was $26.8 million or 12.2% of revenue, compared to $26.9 million or 12.2% for the same quarter last year. Net income was $22.2 million or 37 cents per share on a diluted basis, compared with $20.9 million or 35 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 33 days at March 31, 2010, compared to 33 days at December 31, 2009.

For the quarter ended March 31, 2010, cash provided from operating activities was $16.8 million and capital expenditure was $9.5 million. As a result, the company's net cash, amounted to $200 million at March 31, 2010, compared to net cash of $194 million at December 31, 2009.

"As expected, 2010 has started solidly." commented CEO Peter Gray. "Following lower booking levels and higher cancellations last year, we had indicated in our February guidance that we believed growth would re-emerge in the second half of 2010. While remaining cautious, with net bookings of $265 million for the quarter, and a pipeline of new opportunities that continues to solidify, we believe the conditions for a return to growth are coming into place. We are pleased with our continued good cash generation and are confident we have the balance sheet to support our growth plans."

The company also announced that Mr. Ted Roberts, who has served as a non-executive director of the company since February 1998, retired at a meeting of the board held on April 19^th. Mr. Declan McKeon was elected to succeed him at the same meeting and will also serve on the audit committee.

Dr. Bruce Given, chairman of the ICON plc board, commented "We are extremely grateful for the outstanding contribution Ted has provided to the ICON board over the last twelve years. Ted's experience, built up over 40 years in the pharmaceutical industry, was a great benefit to the company as it emerged in the public markets and developed into the leading CRO it is today. His wisdom and support have been a significant factor in fostering that success."

Declan McKeon was a partner in PricewaterhouseCoopers (PwC) from 1986-2007. Declan's roles included leadership of the audit and business advisory team for PwC Ireland, membership on the PwC Europe audit and business advisory services executive and market sector lead for consumer and industrial products. Declan remains a consultant to PwC and sits on the audit committee of the Royal College of Surgeons in Ireland. Declan holds a Bachelor of Commerce and Masters in Business Studies from University College Dublin and is a Fellow of The Institute of Chartered Accountants in Ireland.

"We are delighted that Declan is joining our board" commented Dr,.Given, "The breath of his industry experience, gained while a partner with PWC, will enable him to bring fresh perspectives on our market and will complement the strengths and talents of our existing board members."

Source: ICON plc