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 quarter ended August 31, 2003
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
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):
Yes 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):
Yes 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.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):82 N/A
Other Events.
The registrant hereby incorporates by reference the press release attached
hereto as Exhibit 99.1 into this report.
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Financial Statements and Exhibits.
(a) The following Exhibits are filed as part of this report:
EXHIBIT NO. DESCRIPTION
99.1 Press Release.
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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
October 1, 2003 /s/ Sean Leech
--------------------- ---------------------------
Date Sean Leech
Chief Financial Officer
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Exhibit 99.1
ICON Reports Strong Results with 47% increase in revenues and 46% increase in
operating income in First Quarter FY 2004 (NASDAQ:ICLR)
Highlights - First Quarter Fiscal 2004
o First Quarter net revenues increased 47% over the first quarter of fiscal
2003 to $68.9 million.
o Income from operations increased 46% over the first quarter of fiscal 2003
to $7.6 million.
o Diluted earnings per share increased 33% for the first quarter to 44 cents
compared to 33 cents in same quarter last year.
o $134 million of net new business awarded to ICON during the quarter.
Dublin, Ireland, September 30, 2003 - ICON plc (NASDAQ: ICLR), a global contract
clinical research organisation, which has over 2,500 employees providing
services to the pharmaceutical and biotech industries from 31 locations in 18
countries worldwide, today reported the financial results for its first quarter
ended August 31, 2003.
Net revenues for the quarter were $68.9 million, representing a 47% increase
over net revenues of $46.9 million for the same quarter last year. Income from
operations was $7.6 million, which represents an increase of 46% from the $5.2
million reported for the first quarter last year. Operating margin for the
quarter was 11.1%, unchanged over the equivalent period last year. Net income
for the quarter was $5.6 million or 44 cents per share, on a diluted basis,
compared with $4.0 million or 33 cents per share for the first quarter last
year.
In the quarter, the Company raised approximately $44.3 million after the
deduction of costs through the issuance of an additional 1.5 million shares at
$32.25 per share. Additionally, for the quarter to August 31, 2003, cash used in
operations was $0.2 million and capital expenditure was $3.4 million. In the
quarter, days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 64 days at August 31, 2003, unchanged
from the 64 days reported at May 31, 2003.
As a result, the Company's net cash was $51.4 million at August 31, 2003,
compared to $11.2 million at May 31, 2003.
"The performance in the first quarter has given us an excellent start to fiscal
2004", commented Chairman Dr. John Climax. "We were particularly pleased with
the award of $134 million of net new business; a record for ICON. Our strong
levels of revenue growth have continued, and our operating margins have shown a
solid improvement over the previous quarter, all of which reinforce our
confidence in ICON's future outlook ".
The Company also announced the appointment of Mr. Shuji Higuchi as a
non-executive director to its Board. Mr. Higuchi has over 38 years of experience
in the pharmaceutical industry. He was the President of Takeda Pharma GmbH from
1983 to 1992, President of Takeda Europe R&D Centre, Frankfurt / London from
1992 to 2002, and served as a Corporate Officer of Takeda Chemical Industries
Limited, Japan from 1999 to 2002. He is currently Executive Director of the
Foundation for Biomedical Research and Innovation, Kobe, Japan.
"We're delighted to welcome Mr. Higuchi to the Board of ICON" commented Dr.
Climax, "His extensive experience in the pharmaceutical industry, and in
particular his knowledge of the Japanese environment, will prove an invaluable
addition to the board".
The Company also announced that on September 9, 2003, following the end of the
first quarter, it completed the acquisition of Globomax LLC, a specialist CRO
which provides a range of development and consulting services
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to the pharmaceutical and biotechnology industries. ICON has acquired Globomax
for an initial consideration of $11 million in cash, with further payments of up
to $4 million payable over the next three fiscal years, subject to the
achievement of certain performance targets. The inclusion of Globomax's results
is expected to have a modestly accretive impact on earnings per share for fiscal
2004.
The company will hold its first quarter conference call today, September 30,
2003 at 11:00 EST [16:00 GMT / 17:00 CET]. 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
"shareholders services". 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.
Source: ICON plc
Contact : Investor Relations 1-888-381-7923 or Sean Leech CFO + 353 -1-291-2000
Both at ICON.
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ICON plc
Consolidated Income Statements
(Unaudited)
Three Months ended August 31, 2003 and 2002
(Dollars, in thousands, except share and per share data)
Three Months Ended
Aug 31, Aug 31,
2003 2002
Gross Revenue 106,177 72,087
Subcontractor Costs 37,242 25,228
--------------------------------------
Net Revenue 68,935 46,859
Costs and expenses
Direct costs 37,699 25,425
Selling, general and administrative 21,025 14,643
Depreciation and amortization 2,589 1,570
--------------------------------------
Total costs and expenses 61,313 41,638
Income from operations 7,622 5,221
Interest income (net) 47 186
--------------------------------------
Income before provision of income taxes 7,669 5,407
Provision for income taxes 2,065 1,434
--------------------------------------
Net income 5,604 3,973
======================================
Net income per ordinary share
Basic $0.46 $0.34
--------------------------------------
Diluted $0.44 $0.33
--------------------------------------
Weighted average number of ordinary shares
Basic 12,153,772 11,798,354
Diluted 12,606,971 12,147,634
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ICON plc
Summary Balance Sheet Data
August 31, 2003 and May 31, 2003
(Dollars, in thousands)
August 31, May 31,
2003 2003
(unaudited)
(audited)
Cash and short-term investments 57,415 18,311
Short-term debt (6,046) (7,126)
51,369 11,185
Net Cash
Accounts Receivable 69,087 74,645
Unbilled revenue 52,402 44,783
Payments on account (47,362) (45,763)
74,127 73,665
Total
Working Capital 99,410 53,827
Total assets 275,733 235,014
Shareholder's equity 180,950 136,910
Source: ICON plc
Contact: Investor Relations 1-888-381-7923 or
Sean Leech CFO + 353 1 291 2000
both at ICON.
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