ICON Reports 48% Increase in Revenue and 46% Increase in Operating Income and Raises Guidance for 2008 (NASDAQ:ICLR)

29/04/2008 - 12:55

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 first quarter ended March

31, 2008.
Net revenues for the quarter were $201.3 million, representing a 48%

increase over net revenues of $136.1 million for the comparative quarter

last year.
Income from operations was $21.5 million or 10.7% of revenue, compared

to $14.7 million or 10.8% for the same quarter last year. Net income was

$16.9 million or 56 cents per share on a diluted basis, compared with

$12.3 million or 42 cents per share last year.
Days sales outstanding, comprising accounts receivable and unbilled

revenue less payments on account, were 67 days at March 31, 2008

compared to 66 days at December 31, 2007.
For the quarter ended March 31, 2008, cash used in operating activities

was $12.3 million and capital expenditure was $16.5 million. We

completed the acquisition of HCD a phase I unit based in San Antonio

Texas on February 11th for a net consideration

of $11 million. As a result, the company´s net

debt, amounted to $20.2 million at March 31, 2008, compared to net cash

and short-term investments of $23.8 million at December 31, 2007.
"It has been an excellent start to 2008"

commented Chairman Dr. John Climax "Both

revenue and operating income showed substantial growth. Business wins

were again strong with $369 million of net business awarded in the

quarter. Accordingly we are raising our 2008 guidance for revenue and

EPS to $840 - $860 million and $2.35 - $2.45 respectively."
The company will hold its first quarter conference call today, April 29

2008 at 10:00 EST [15:00 Ireland & UK].

This call and linked slide presentation can be accessed live from our

website at http://www.iconplc.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 6,150

employees, operating from 69 locations in 36 countries. Further

information is available at www.iconplc.com.

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ICON plc
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Consolidated Income Statements (Unaudited)
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Three Months ended March 31, 2008 and March 31, 2007
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(Dollars, in thousands, except share and per share data)
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Three Months Ended
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March 31

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2008

2007
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Gross Revenue

283,853

186,740
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Subcontractor costs

82,509

50,651
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Net Revenue

201,344

136,089
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Costs and expenses

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Direct costs

113,189

78,557
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Selling, general and administrative

60,545

38,684
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Depreciation and amortization

6,098

4,156
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Total costs and expenses

179,832

121,397
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Income from operations

21,512

14,692
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Net interest (expense) / income

(43)

1,044
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Income before provision for income taxes

21,469

15,736
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Provision for income taxes

4,247

3,428
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Minority interest

328

42
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Net income

16,894

12,266
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Net income per ordinary share

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Basic

$0.58

$0.43
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Diluted

$0.56

$0.42
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Weighted average number of ordinary shares

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Basic

28,902,630

28,564,498
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Diluted

30,039,736

29,508,662
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ICON plc
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Summary Balance Sheet Data
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March 31, 2008 and December 31, 2007
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(Dollars, in thousands)
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March 31

December 31

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2008

2007
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(Unaudited)

(Audited)
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Cash and short-term investments
110,965

118,633
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Debt

(131,147)

(94,829)
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Net (debt)/cash

(20,182)

23,804
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Accounts receivable

182,672

129,865
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Unbilled revenue

161,120

144,661
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Payments on account

(133,805)

(96,553)
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Total

209,987

177,973
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Working Capital

189,805

193,271
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Total Assets

797,880

693,138
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Shareholder´s Equity

421,033

388,400
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http://www.iconplc.com

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