ICON fourth quarter net revenues increase 5% to $242.6 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 full year and fourth quarter ended December 31, 2011.

For the fourth quarter net revenues grew 5% year on year to $242.6 million and operating income was $6.6 million representing 3% of revenue, compared to $22 million or 9% for the same quarter last year. Net income was $4.1 million compared with $22.1 million last year or $0.07 per share compared to $0.36 in the same quarter last year.

For the full year revenue grew 5.1% to $946 million and operating income before non-recurring charges was $39.3 million representing 4.2% of revenue compared to $92 million or 10.2% in 2010. On a US GAAP basis income from operations was $29.4 million or 3.1% compared with $92 million in the prior year.

Net income before non-recurring charges was $31.5 million, a net margin of 3.3%, compared to $87.1 million last year and 9.7% of revenue. EPS before non-recurring charges for 2011 was $0.52 per share compared with $1.44 in 2010. On a US GAAP basis net income was $22.8 million, a net margin of 2.4%, compared to $87.1 million last year and 9.7% of revenue. EPS on a GAAP basis for 2011 was $0.37 per share compared with $1.44 in 2010.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account was 47 days at December 31, 2011 compared with 52 days at the September 30, 2011 and 37 days at December 31, 2010.

For the quarter ended December 31, 2011 cash provided by operating activities was $37.8 million and capital expenditure was $10.7 million. For the full year 2011 cash flow from operating activities was $20.2 million and capital expenditure was $35.3 million. In addition $61.5 million was invested on acquisitions and $9 million was expended on a stock repurchase programme. As a result the company's net cash amounted to $174 million at December 31, 2011 compared to $256 million of net cash at December 31, 2010.

Commenting on the results, Chief Executive Officer, Ciaran Murray, said "I am encouraged with our performance in the quarter. Net new business awards were $308m, representing a book to bill of 1.3. This resulted in a year-end backlog of $2.3 billion up 19% on December 2010." He continued "Earnings in the quarter increased to $0.07. With this level of backlog growth and continuing success in developing our strategic partnerships, we expect revenue to grow steadily through the remainder of 2012 and be in the range of $1.07 - $1.11 billion. As a result of this revenue growth and of improved leverage from our cost base we expect EPS in the range of $0.90 to $1.10."