ICON first quarter net revenue increases 4.6% to $229 million

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, 2011.

“With strong gross bookings of $329m, a strengthening pipeline of new opportunities and the Central Lab progressing as planned, we believe we are on track for a return to growth in the second half.”

Net revenue for the quarter was $229 million, an increase of 4.6% on the prior year, a constant currency increase year on year of 5.5%.

Before restructuring charges, income from operations was $16 million or 7% of revenue, compared to $26.8 million or 12.2% for the same quarter last year. Excluding restructuring charges, net income was $12.8 million or 21 cents per share on a diluted basis, compared with $22.2 million or 37 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 49 days at March 31, 2011, compared to 37 days at December 31, 2010.

For the quarter ended March 31, 2011, cash used in operating activities was $5.3 million and capital expenditure was $6 million. In addition ICON paid an initial cash consideration of $27.7m for the acquisition of Oxford Outcomes. As a result, the company's net cash amounted to $232 million at March 31, 2011, compared to net cash of $256 million at December 31, 2010.

"2011 has started in line with expectations." commented CEO Peter Gray. "With strong gross bookings of $329m, a strengthening pipeline of new opportunities and the Central Lab progressing as planned, we believe we are on track for a return to growth in the second half."

During the quarter the company undertook a number of cost reduction steps which led to restructuring costs of $5 million. US GAAP income from operations after these items amounted to $11 million or 4.8% of revenue. US GAAP net income for the quarter is $8.3 million or 14 cents per share.