NASDAQ-listed Icon Plc, which conducts clinical trials on contract for clients, has reported net revenues of $79.5 million, a 9 per cent increase from the figure of $73.2 million reported a year ago.
But income from operations for the quarter was $7.0 million, a decrease of 16 per cent from the same period last year.
"[This] was the first quarter in over 5 years in which our earnings declined, but was in line with our expectations following the exceptionally high level of cancellations we suffered in the previous quarter", said Icon Chairman, Dr John Climax.
"As predicted, this high cancellation experience appears to have been an anomaly. With strong gross wins of $122 million, and cancellations of only $2 million in our most recent quarter, we believe we have a solid foundation for a return to growth in Fiscal 2006 although we will need further quarters of solid business wins to consolidate this."
"Nevertheless we are revising our EPS guidance for Fiscal 2005 to between $1.68 - $1.70."
Operating margin for the quarter was 8.8 per cent compared with 11.4 per cent for the equivalent period last year.
Net income for the quarter was $5.8 million or 41 cents per share, on a diluted basis, compared with $6.3 million or 45 cents per share for the second quarter last year.
In the six months to November 30th, 2004, net revenues were $157.8 million, representing an 11 per cent increase over net revenues of $142.1 million reported for the first six months of last year.
Income from operations in the first half was $16.5 million, representing an increase of 3 per cent from the $16.0 million reported for the same period last year.
Capital spending in the second quarter was $2.9 million and $7.5 million for the year to date.
Icon employs 2,600 staff and provides services to the pharmaceutical, biotech and medical device industries from 37 locations in 23 countries worldwide.