ICON second-quarter 2010 net revenues increase 2% to $224 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 second quarter ended June 30, 2010.

“Overall, we are pleased with our second quarter”

Net revenues for the quarter were $224 million, representing a 2% increase over net revenues of $220 million for the same quarter last year. On a constant currency basis revenue grew by 3.1%. Year-to-date, net revenues were $443 million, representing a 1% increase over the same period last year.

Income from operations was $25.7 million or 11.5% of revenue, compared to $29.3 million (before one-time net charges) or 13.3% for the same quarter last year. Constant currency operating margin was 11.8%. Net income was $22.9 million or 38 cents per share on a diluted basis, compared to $22.8 million or 38 cents per share last year.

Year-to-date income from operations was $52.5 million, compared to $56.2 million (before one-time net charges) last year representing a margin of 11.8% in 2010 and a margin of 12.8% in 2009. Net income was $45.1 million or 74 cents per share, compared with $43.7 million or 73 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 30 days at June 30, 2010, compared to 33 days at December 31, 2009.

For the quarter ended June 30, 2010, cash provided from operating activities was $35 million and capital expenditure was $7.5 million. As a result, the company's net cash, amounted to $221 million at June 30, 2010, compared to net cash of $194 million at December 31, 2009.

"Overall, we are pleased with our second quarter," commented CEO Mr Peter Gray. "Our net booking of $320m was particularly satisfying, resulting in a strong book to bill of 1.4, and the growth in our backlog to $1.9 bn. However, we are not expecting revenue growth to respond quickly to these awards, and as a result we now anticipate that the outcome for 2010 will be at the lower end of the guidance range given in February".