a5455935.htm
FORM 6-K

SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549

Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 under
the Securities Exchange Act of 1934

For the month of July 2007
 
 ICON plc
 (Registrant’s name)


0-29714
(Commission file number)


South County Business Park, Leopardstown, Dublin 18, Ireland.
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Yes x
No o

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
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No x

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
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No x

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
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If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82        N/A
 

ICON reports 37% increase in revenues and 41% increase in EPS. Backlog exceeds $1 billion
for the first time (NASDAQ:ICLR)

Highlights – Second Quarter 2007

*
Second quarter net revenues increased 37% over the prior year, to $147.0 million.

*
Income from operations increased by 42%, to $16.1 million.

*
Diluted earnings per share increased by 41%, to 45 cents.

*
Record $230 million of net new business wins in the quarter, representing a book-to-bill ratio of 1.6.

Dublin, Ireland, July 26, 2007 – 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 second quarter ended June 30, 2007.

Net revenues for the quarter were $147.0 million, representing a 36.9% increase over net revenues of $107.4 million for the same quarter last year.  Income from operations, after taking non-cash stock compensation charge of $1.4 million, calculated in accordance with SFAS 123(R), was $16.1 million or 10.9% of revenue, compared to $11.3 million or 10.6% for the same quarter last year. Net income was $13.3 million or 45 cents per share on a diluted basis, compared with $9.3 million or 32 cents per share last year.

Year-to-date, net revenues were $283.1 million, representing a 37.5% increase over the same period last year.  Income from operations, after taking non-cash stock compensation charge of $2.6 million calculated in accordance with SFAS 123(R), was $30.8 million or 10.9% of revenue, compared to $21.4 million or 10.4% last year. Net income was $25.6 million or 86 cents per share, compared with $16.8 million or 59 cents last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 53 days at June 30, 2007, a decrease from 59 days at March 31, 2007 and unchanged from 53 days at December 31, 2006.

For the quarter ended June 30, 2007, cash provided by operating activities was $22.2 million and capital expenditure was $17.9 million. For the six months, cash flow from operating activities was $19.4 million and capital expenditure was $30.4 million. As a result, the company’s cash and short-term investments, net of debt, amounted to $91.1 million at June 30, 2007, compared to $97.9 million at December 31, 2006.

“We are delighted with the second quarter’s performance”, commented Chairman Dr. John Climax. “Revenue growth was very strong at 37%, and we made further progress in expanding margins which led to net income growth of 43% and EPS growth of 41%. Excellent net bookings of $230 million brought our backlog to over $1 billion, another milestone in ICON’s progress, giving us strong confidence in the outlook for the remainder of the year”

“We recently completed the acquisition of DOCS International, a leading European based clinical research staffing organisation, which will be integrated with ICON’s existing US based staffing business. The combined operation will give our clients greater flexibility when they run clinical projects internally, and give them access to a global pool of talent through one vendor”

The company will hold its second quarter conference call today, July 26, 2007 at 10:00 EST [15:00 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 5,150 employees, operating from 63 locations in 33 countries. Further information is available at www.iconclinical.com.

Source: ICON plc

Contact : Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 –1-291-2000
Both at ICON.


                         
                         
ICON plc
  
                         
Consolidated Income Statements (Unaudited)
  
                         
Three and Six Months ended June 30, 2007 and June 30, 2006
  
(Dollars, in thousands, except share and per share data)
  
                         
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
    
June 30,
    
June 30,
  
   
2007
    
2006
    
2007
    
2006
  
                         
Gross Revenue
    
207,383
      
153,744
      
394,123
      
294,388
  
                                 
Subcontractor costs
    
60,336
      
46,308
      
110,987
      
88,457
  
                                 
Net Revenue
    
147,047
      
107,436
      
283,136
      
205,931
  
                                 
Costs and expenses
                                
Direct costs
    
83,875
      
60,014
      
162,432
      
114,718
  
Selling, general and administrative
    
42,662
      
32,397
      
81,346
      
62,677
  
Depreciation and amortization
    
4,450
      
3,689
      
8,606
      
7,134
  
                                 
Total costs and expenses
    
130,987
      
96,100
      
252,384
      
184,529
  
                                 
Income from operations
    
16,060
      
11,336
      
30,752
      
21,402
  
                                 
Interest income (net)
    
1,019
      
938
      
2,063
      
1,585
  
                                 
Income before provision of income taxes
    
17,079
      
12,274
      
32,815
      
22,987
  
                                 
Provision for income taxes
    
3,758
      
2,943
      
7,186
      
6,073
  
Minority interest
    
6
      
34
      
48
      
76
  
                                 
Net income
    
13,315
      
9,297
      
25,581
      
16,838
  
                                 
Net income per ordinary share
                                
Basic
   $
0.46
     $
0.33
     $
0.89
     $
0.60
  
                                 
Diluted
   $
0.45
     $
0.32
     $
0.86
     $
0.59
  
                                 
Weighted average number of ordinary shares
                                
Basic
    
28,684,201
      
28,265,490
      
28,624,350
      
28,174,762
  
                                 
Diluted
    
29,685,489
      
28,695,530
      
29,597,671
      
28,499,356
  
                                 
 
 
               
ICON plc
  
               
Summary Balance Sheet Data
  
   
               
June 30, 2007 and December 31, 2006
  
(Dollars, in thousands)
  
               
     
June 30,
    
December 31,
  
     
2007
    
2006
  
     
(Unaudited)
    
(Audited)
  
Cash and short-term investments
      
107,042
      
102,861
  
Short-term debt
       (15,947 )     (5,000 )
Net cash
      
91,095
      
97,861
  
                   
Accounts receivable
      
105,983
      
108,216
  
Unbilled revenue
      
104,740
      
89,977
  
Payments on account
       (87,619 )     (90,394 )
Total
      
123,104
      
107,799
  
                   
Working Capital
      
169,744
      
160,321
  
                   
Total Assets
      
521,929
      
476,341
  
                   
Shareholder's Equity
      
337,479
      
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
          
                   


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
  ICON plc  
     
     
Date July 25, 2007 /s/ Ciaran Murray  
  Ciaran Murray  
  Chief Financial Officer