Clinical trials group Icon has reported another substantial rise in net turnover and profit but continuing problems with its laboratories division.
Figures for the three months to end August - its fiscal first quarter - showed operating profit coming in ahead of forecasts at $7.6 million (€6.5 million), 46 per cent ahead of the same period last year. Net income per diluted share was 44 US cents, compared with analysts' projections of 41 cents.
The group, which employs more than 2,500 people in 18 countries, secured net turnover of $68.94 million, fractionally below forecasts, but still 47 per cent ahead of the same three months in 2002. But Icon Laboratories continues to be a problem area for the firm, which provides clinical research on a contract basis to pharmaceutical and biotechnology industries.
The division lost $1.2 million in the three months, its largest quarterly loss to date, and the firm was reluctant to state whether it had yet turned a corner, acknowledging in a conference call that previous predictions for the division had been wide of the mark. The laboratories division accounts for about 10 per cent of Icon's business. Chief executive Mr Peter Gray said Icon was disappointed with the performance of the laboratories, which dragged the firms' operating margins down from 14 per cent to 11.1 per cent.
He was upbeat, however, about new business won. Icon secured a record $134 million in new business in the quarter and now has a backlog exceeding $400 million, of which it expects $217 million to be earned in the next 12 months.
Chairman Dr John Climax said the performance "has given us an excellent start to fiscal 2004". "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 firm said the $11 million-plus acquisition of clinical research group Globomax was completed last month and would begin to feed through to the company's figures this quarter.
It also announced the appointment of Mr Shuji Higuchi as a non-executive director. Mr Higuchi has 38 years' experience in the pharmaceutical industry.
