ICON Q1 2014 net revenue increases 10% to $349.6 million

ICON plc, (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, 2014.

For the first quarter, net revenue grew 10% year on year to $349.6 million from $316.8 million in Q1 2013.

Income from operations, excluding restructuring and other items, was $43.0 million or 12.3% of revenue, compared to $27.4 million or 8.7% for the same quarter last year.

Net income, excluding restructuring and other items, was $36.2 million or 57 cents per share on a diluted basis, compared with $22.2 million or 36 cents per share for the same quarter last year.

Guidance for the full year 2014 has been updated with revenue expected to be in the range of $1.48 billion - $1.54 billion and EPS guidance in the range of $2.30 - $2.40.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 35 days at March 31, 2014, compared with 32 days at the end of December 2013.

For the quarter ended March 31, 2014, cash generated from operating activities was $38.7 million and capital expenditure was $6.2 million. The company's net cash amounted to $364 million at March 31, 2014, compared to net cash of $321 million at December 31, 2013.

CEO Ciaran Murray commented, "We have made an encouraging start to 2014. Revenue for Q1 increased 10% year on year and we continue to make good progress in expanding our operating margins which reached 12.3% in the quarter. The $427 million in net new business that we reported represents a book to bill of 1.22 and gives us a solid foundation upon which to build during the remainder of 2014. In addition in the quarter we have agreed to acquire Aptiv Solutions, a leader in the design and execution of adaptive and medical device trials. As a consequence of this acquisition and our continuing margin progression we are updating our full year 2014 guidance to revenue in the range of $1,480 - $1,540 and EPS in the range of $2.30 - $2.40."

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including non-GAAP operating and net income and non-GAAP diluted earnings per share. While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, ICON believes certain non-GAAP information is useful to investors for historical comparison purposes.