Restructuring charges and other non-recurring items amounting to US$5.6 million cut into ICON’s profits for the second quarter of fiscal 2012, dragging operating income for the three months ended 30 June down to US$11.0 million compared with US$15.5 million in the same period last year.
Without the one-off items, the year-on-year fall of 29.0% in operating profit would have registered as a 6.6% improvement to US$16.6 million.
Net income, on the same basis, would have been slightly lower at US$12.9 million or US$0.21 per share (diluted), compared with $13.1 million or US$0.21 per share in the second quarter of fiscal 2011.
Factoring in the restructuring and other items, net income for the latest quarter dropped by 39.1% to US$8.0 million, or from US$0.22 to US$0.13 on a diluted basis.
Net revenues for the latest quarter rose by 15.9% year on year to US$277.0 million.
In the year to date, ICON reported, 14% of revenues have come from the company’s leading client and 45% from its top five clients.
This represents a more concentrated spread than in fiscal year 2011 overall, when 13% and 37% of revenues came from ICON’s leading client and top five clients respectively.
The global provider of outsourced development services based in Ireland has seen little change in the geographical distribution of its revenues so far this year.
The EMEA region has generated 45.9% of net revenues in YTD 2012, with the US accounting for 41.9% and the Asia-Pacific/Latin America regions for 12.2%. The corresponding figures for fiscal year 2011 were 46.2%, 41.6% and 12.1%.
Book to bill
ICON recorded gross new business wins of US$477 million in the second quarter of fiscal 2012, compared with US$357 million in the year-before quarter.
Net new-business wins in the latest quarter came to US$373 million, giving a net book-to-bill ratio of 1.35. In the second quarter of fiscal year 2011, net new-business wins were US$310 million and the net book to bill was 1.32.
ICON had an opening backlog of around US$2.5 billion in the latest quarter, compared with nearly US$2.0 billion one year previously.
“We continue to book significant levels of new business and improve our profitability,” commented chief executive officer Ciaran Murray on the second-quarter performance.
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