Icon $2.7m in red after restructuring

IRISH CLINICAL trials company Icon reported a 7 per cent rise in revenue to $241 million (€171.9 million) in the third quarter.

However, the company posted a net loss of $2.7 million for the same period after restructuring costs of $4.8 million pushed the company into the red.

Before restructuring charges, operating income was $1.1 million compared to $17.6 million for the same period last year. The company enjoyed net business wins of $431 million in the quarter.

Backlog grew 16 per cent year on year to $2.2 billion. Earnings per share, excluding restructuring charges, was $0.02. In year-to-date performance, revenue in the first nine months was $703 million, representing a 5 per cent increase over the same period last year. But net income before restructuring charges was $27.4 million or 45 cent per share compared to $65 million or $1.07 per share last year.

The company, which was founded in Dublin in 1990 by John Climax and Ronan Lambe, also announced details of a $50 million share buy-back programme to commence in the fourth quarter.

The Nasdaq-listed company, which has a secondary listing in Dublin, said it undertook cost reduction steps which led to the restructuring costs of $4.8 million.

The company is estimating a 15 to 20 per cent growth in revenue next year.