ICLR ICON PLC

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 fourth quarter ended December 31, 2007. Full year, net revenues were $630.7 million, representing a 38.4% increase over last year. Income from operations, after taking non-cash stock compensation charge of $5.7 million was $69.2 million or 11% of revenue, compared to $47.8 million or 10.5% last year. Net income was $55.9 million or $1.88 per share, compared with $38.3 million or $1.33 per share, last year. Net revenues for the quarter were $180.7 million, representing a 40.1% increase over net revenues of $128.9 million for the same quarter last year. Income from operations, after taking non-cash stock compensation charge of $1.8 million, was $19.8 million or 11.0% of revenue, compared to $13.8 million or 10.7%for the same quarter last year. Net income was $15.8 million or 53 cents per share on a diluted basis, compared with $11.4 million or 39 cents per share last year. Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 66 days at December 31, 2007, compared to 65 days at September 30, 2007. For the quarter ended December 31, 2007, cash provided by operating activities was $23 million and capital expenditure was $25.7 million. Full year 2007, cash flow from operating activities was $42.9million and capital expenditure was $75.4 million. In addition, DOCS International was acquired in July 2007 for consideration of $40.6 million. As a result, cash and short-term investments, net of debt, amounted to $23.8million at December 31, 2007, compared to $97.9 million at December 31, 2006. "2007 has been another outstanding year for ICON", commented Chairman Dr. John Climax. "Revenue growth continued to be strong and operating margins expanded. Record net bookings of $344m in the fourth quarter led to bookings for the full year of over $1billion, another major milestone for ICON. As a consequence, we have a record backlog of $1.3 billion, which gives us confidence as we enter our new fiscal year" The company will hold its fourth quarter conference call today, February 21, 2008 at 9:00 EST (14:00 Ireland & UK). This call and linked slide presentation can be accessed live from our website at http://www.iconclinical.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 5,600 employees, operating from 68 locations in 36 countries. Further information is available at www.iconclinical.com. -0- *T ICON plc Consolidated Income Statements Three and Twelve Months ended December 31, 2007 and December 31, 2006 (Dollars, in thousands, except share and per share data) Three Months Ended Twelve Months Ended December December December December 31, 31, 31, 31, 2007 2006 2007 2006 Gross Revenue 241,531 184,329 867,476 649,826 Subcontractor costs 60,861 55,377 236,751 194,229 ---------- ---------- ---------- ---------- Net Revenue 180,670 128,952 630,722 455,597 Costs and expenses Direct costs 100,372 73,117 354,479 256,263 Selling, general and administrative 55,129 38,092 187,993 136,569 Depreciation and amortization 5,382 3,940 19,008 14,949 ---------- ---------- ---------- ---------- Total costs and expenses 160,883 115,149 561,480 407,781 Income from operations 19,787 13,803 69,242 47,816 Interest income (net) 659 1,104 2,738 3,640 ---------- ---------- ---------- ---------- Income before provision of income taxes 20,446 14,907 71,980 51,456 Provision for income taxes 4,486 3,428 15,830 12,924 Minority Interest 79 107 187 228 ---------- ---------- ---------- ---------- Net income 15,881 11,372 55,963 38,304 ========== ========== ========== ========== Net income per ordinary share Basic $0.55 $0.40 $1.95 $1.35 ---------- ---------- ---------- ---------- Diluted $0.53 $0.39 $1.88 $1.33 ---------- ---------- ---------- ---------- Weighted average number of ordinary shares Basic 28,811,694 28,493,566 28,705,272 28,314,985 Diluted 29,975,050 29,427,297 29,747,964 28,863,334 *T -0- *T ICON plc Summary Balance Sheet Data December 31, 2007 and December 31, 2006 (Dollars, in thousands) December December 31, 31, 2007 2006 (audited) (audited) Cash and short-term investments 118,633 102,861 Debt 94,829 5,000 Net cash 23,804 97,861 Accounts receivable 129,865 108,216 Unbilled revenue 144,611 89,977 Payments on account (96,553) (90,394) Total 177,923 107,799 Working Capital 193,271 160,321 Total assets 693,138 476,341 Shareholder's equity 388,400 302,738 Source: ICON plc Contact: Investor Relations 1-888-381-7923 or Ciaran Murray CFO + 353 1 291 2000 both at ICON. http://www.iconclinical.com *T 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 fourth quarter ended December 31, 2007. Full year, net revenues were $630.7 million, representing a 38.4% increase over last year. Income from operations, after taking non-cash stock compensation charge of $5.7 million was $69.2 million or 11% of revenue, compared to $47.8 million or 10.5% last year. Net income was $55.9 million or $1.88 per share, compared with $38.3 million or $1.33 per share, last year. Net revenues for the quarter were $180.7 million, representing a 40.1% increase over net revenues of $128.9 million for the same quarter last year. Income from operations, after taking non-cash stock compensation charge of $1.8 million, was $19.8 million or 11.0% of revenue, compared to $13.8 million or 10.7%for the same quarter last year. Net income was $15.8 million or 53 cents per share on a diluted basis, compared with $11.4 million or 39 cents per share last year. Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 66 days at December 31, 2007, compared to 65 days at September 30, 2007. For the quarter ended December 31, 2007, cash provided by operating activities was $23 million and capital expenditure was $25.7 million. Full year 2007, cash flow from operating activities was $42.9million and capital expenditure was $75.4 million. In addition, DOCS International was acquired in July 2007 for consideration of $40.6 million. As a result, cash and short-term investments, net of debt, amounted to $23.8million at December 31, 2007, compared to $97.9 million at December 31, 2006. �2007 has been another outstanding year for ICON�, commented Chairman Dr. John Climax. �Revenue growth continued to be strong and operating margins expanded. Record net bookings of $344m in the fourth quarter led to bookings for the full year of over $1billion, another major milestone for ICON. As a consequence, we have a record backlog of $1.3 billion, which gives us confidence as we enter our new fiscal year� The company will hold its fourth quarter conference call today, February 21, 2008 at 9:00 EST [14:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at http://www.iconclinical.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 5,600 employees, operating from 68 locations in 36 countries. Further information is available at www.iconclinical.com. ICON plc � � � � � Consolidated Income Statements � � Three and Twelve Months ended December 31, 2007 and December 31, 2006 (Dollars, in thousands, except share and per share data) � � Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2007 2006 2007 2006 � Gross Revenue 241,531 184,329 867,476 649,826 � Subcontractor costs 60,861 55,377 236,751 194,229 � � � � Net Revenue 180,670 128,952 630,722 455,597 � Costs and expenses Direct costs 100,372 73,117 354,479 256,263 Selling, general and administrative 55,129 38,092 187,993 136,569 Depreciation and amortization 5,382 3,940 19,008 14,949 � � � � Total costs and expenses 160,883 115,149 561,480 407,781 � Income from operations 19,787 13,803 69,242 47,816 � Interest income (net) 659 1,104 2,738 3,640 � � � � Income before provision of income taxes 20,446 14,907 71,980 51,456 � Provision for income taxes 4,486 3,428 15,830 12,924 Minority Interest 79 107 187 228 � Net income 15,881 11,372 55,963 38,304 � Net income per ordinary share Basic $0.55 $0.40 $1.95 $1.35 � Diluted $0.53 $0.39 $1.88 $1.33 � Weighted average number of ordinary shares Basic 28,811,694 28,493,566 28,705,272 28,314,985 � Diluted 29,975,050 29,427,297 29,747,964 28,863,334 � � � ICON plc � Summary Balance Sheet Data � � December 31, 2007 and December 31, 2006 (Dollars, in thousands) � December 31, December 31, 2007 2006 (audited) (audited) Cash and short-term investments 118,633 102,861 Debt 94,829 5,000 Net cash 23,804 97,861 � Accounts receivable 129,865 108,216 Unbilled revenue 144,611 89,977 Payments on account (96,553) (90,394) Total 177,923 107,799 � Working Capital 193,271 160,321 � Total assets 693,138 476,341 � Shareholder's equity 388,400 302,738 � � Source: ICON plc � Contact: Investor Relations 1-888-381-7923 or Ciaran Murray CFO + 353 1 291 2000 both at ICON. � http://www.iconclinical.com