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, 2010.
Net revenues for 2010 grew 1.4% to $900 million, representing a constant currency increase of 3.1% year on year.
Operating income was $92 million, representing 10.2% of revenue, compared to $116.3 million and 13.1% last year. This comprised clinical services operating income of $104.8 million or 12.5% and central lab operating losses of $12.8 million.
Net income was $87.1 million, a net margin of 9.7%, compared to $91.6 million last year and 10.3% of revenue. Diluted EPS for 2010 was $1.44 per share compared with $1.53 in 2009.For the fourth quarter, net revenues grew 2% to $232.1 million. On a constant currency basis the increase was 5.6%. Operating income was $22 million, representing 9.5% of revenue, compared to $29.6 million or 13% for the same quarter last year. This comprised clinical services operating income of $26 million or 12.1% and a central lab operating loss of $4 million. Net income was $22 million, compared with $23.9 million last year, producing a diluted earnings per share of 36c compared to 40c in the same quarter last year. Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 37 days at December 31, 2010. This compares to 33 days at December 31, 2009. For the quarter ended December 31, 2010, cash provided by operating activities was $31.9 million and capital expenditure was $7.1 million. Full year 2010 cash flow from operating activities was $87.4 million and capital expenditure was $31 million. As a result, the company’s net cash amounted to $256 million at December 31, 2010 compared to $194 million of net cash at December 31, 2009.