Highlights – Third Quarter 2010
* Net revenue of $225 million, a 2% increase vs. Q3 2009
* Operating margin of 12.0% before central lab and foreign exchange translation losses.
* Operating margin of 7.8% on a GAAP basis
* GAAP EPS of 33 cent
* Net cash rises to $231 million
* Gross new business wins for the quarter of $317m (net $225m)
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 third quarter ended September 30, 2010.
Net revenues for the quarter were $225 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 7%. Year-to-date, net revenues were $668 million, representing a 1% increase over the same period last year.
Income from operations was $17.6 million or 7.8% of revenue, after the central lab incurred operating losses of approx $4.6 million and a further $3.0 million of cost reduction and other non-recurring charges. In addition, foreign exchange translation losses of $1.8 million were incurred. Excluding these, operating income was $27 million compared to $30.4 million for the same quarter last year.
The company recognised a tax gain in the current quarter of $2.0m, compared to $5.8m of a charge in Q3 2009.
Net income was $19.9 million or 33 cents per share on a diluted basis, compared to $23.9 million or 40 cents per share last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 36 days at September 30, 2010, compared to 33 days at December 31, 2009.
The company’s net cash, amounted to $231 million at September 30, 2010, compared to net cash of $221 million at the end of June 2010 and $194 million at December 31, 2009.