News Release

Highlights — Third Quarter Fiscal 2012

• Net revenue of $286 million, a 19% increase year on year.
• Income from operations of $20.9 million or 7.3% of net revenue.
• EPS of 29 cents on net income of $17.7 million.
• Gross business wins of $496 million, a gross book to bill of 1.7. Net business wins of $450 million, a net book to bill of 1.6.
• Backlog increased 19% year on year to $2.7 billion.
• Announces plans to proceed with a full listing on NASDAQ, replacing its current NASDAQ ADR programme and to withdraw from the Irish Stock Exchange.

DUBLIN--(BUSINESS WIRE)-- ICON (NASDAQ:ICLR) (ISIN:IE0005711209) , a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the third quarter ended September 30, 2012.

Net revenues for the quarter grew 19% to $286 million compared to $241 million in the same quarter last year.

Income from operations, before restructuring and other non-recurring charges, for the quarter was $20.9 million or 7.3% of net revenue, compared with $1.1 million or 0.5% of net revenue for the same period last year. Net income before restructuring and other non-recurring charges was $17.7 million or 29 cents per share compared to $1.5 million or 2 cents per share in Q3 2011.

US GAAP income from operations for the quarter was $20.9 million or 7.3% of net revenue, compared with US GAAP losses from operations of $3.7 million or 1.5% of net revenue in the same period last year. US GAAP net income for the quarter was $17.7 million or 29 cents per share compared to a loss of $2.7 million or 4 cents per share last year.

Year-to-date net revenues were $815 million representing a 16% increase over the same period last year.

Year to date income from operations, before restructuring and other non-recurring charges recorded in the second quarter, was $49.3 million or 6.0% of net revenue compared to $32.6 million or 4.6% of net revenue in the same period last year. Net income year to date, excluding restructuring and other non-recurring charges recorded in the second quarter, was $39.6 million or 66 cents per share. In the same period last year, net income year to date, before restructuring and other non-recurring charges was $27.4 million or 45 cents per share.

Year to date US GAAP income from operations was $43.6 million or 5.3% of net revenue, compared to $22.8 million or 3.2% of net revenue for the same period last year. US GAAP net income year to date was $34.7 million or 57 cents per share compared to $18.8 million or 31 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 38 days at September 30, 2012, compared to 52 days at September 30, 2011.

For the quarter ended September 30, 2012, cash generated from operating activities was $29.3 million and capital expenditure was $6.6 million. Cash paid in respect of acquisitions was $17.4 million for the quarter. The company's net cash amounted to $180 million at September 30, 2012 compared with net cash of $168 million at June 30, 2012.

In our Annual Report for 2011 it was noted that ICON has been considering the structure of its share listings due to its international operations and profile. ICON now plans, subject to finalising the necessary details and arrangements, to proceed with a full listing of shares on NASDAQ and terminate the current NASDAQ ADR programme. It is the company's view that this change will provide benefits to shareholders, including removing some barriers to ownerships and also the potential for further index inclusion for the stock. As a result of this change, ICON believes the Irish Stock Exchange listing will no longer be necessary and accordingly it is the company's plan to withdraw from the Irish Stock Exchange. Once the necessary details and arrangements are finalised, we will announce a date for a shareholder meeting to vote on the resolutions required to implement these listing changes.

CEO Ciaran Murray commented, "I am happy with our progress so far in 2012. We have recorded $1.5bn of gross bookings in the first three quarters of the year, produced 16% growth in revenue year to date and our margin recovery continues to go to plan. We continue to strive to be the CRO partner of choice for the biopharma industry and to differentiate our company through our people, industry leading innovation and expanding value added service offerings."

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including non-GAAP operating and net income and non-GAAP diluted earnings per share. While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, ICON believes certain non-GAAP information is useful to investors for historical comparison purposes.

ICON will hold its third quarter conference call today, November 1, 2012 at 9:00 EST [13:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at http://investor.iconplc.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 "Investors". 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.

ICON plc is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. The company specialises in the strategic development, management and analysis of programs that support clinical development - from compound selection to Phase I-IV clinical studies. With headquarters in Dublin, Ireland, ICON currently, operates from 82 locations in 40 countries and has approximately 9,280 employees. Further information is available at www.iconplc.com.

Source: ICON plc

ICON/ICLR-F

ICON plc
Consolidated Income Statements (Unaudited) (Before restructuring and other non-recurring charges)
Three and Nine Months ended September 30, 2012 and September 30, 2011
(Dollars, in thousands, except share and per share data)
		Three Months Ended					Nine Months Ended
		September 30,		September 30,			September 30,		September 30,
		2012		2011			2012		2011
Gross Revenue		374,965		335,332			1,097,640		958,575
Reimbursable expenses		89,463		94,560			282,798		255,461
Net Revenue		285,502		240,772			814,842		703,114
Costs and expenses
Direct costs		183,332		158,343			525,743		453,679
Selling, general and administrative		70,690		71,629			207,615		188,856
Depreciation and amortization		10,601		9,667			32,233		27,969
Total costs and expenses		264,623		239,639			765,591		670,504
Income from operations		20,879		1,133			49,251		32,610
Net interest (expense)/income		(252)		131			(518)		303
Income before provision for income taxes		20,627		1,264			48,733		32,913
Provision for income taxes		2,889		(202)			9,129		5,559
Net income		17,738		1,466			39,604		27,354
Net income per ordinary share
Basic		$0.30		$0.02			$0.66		$0.45
Diluted		$0.29		$0.02			$0.66		$0.45
Weighted average number of ordinary shares
Basic		59,754,010		60,471,985			59,939,570		60,381,814
Diluted		60,366,137		61,063,020			60,391,199		61,096,464

	ICON plc
	Consolidated Income Statements (Unaudited) (US GAAP)
	Three and Nine Months ended September 30, 2012 and September 30, 2011
	(Dollars, in thousands, except share and per share data)
			Three Months Ended					Six Months Ended
			September 30,		September 30,			September 30,		September 30,
			2012		2011			2012		2011
	Gross Revenue		374,965		335,332			1,097,640		958,575
	Reimbursable expenses		89,463		94,560			282,798		255,461
	Net Revenue		285,502		240,772			814,842		703,114
	Costs and expenses
	Direct costs		183,332		158,343			525,743		453,679
	Selling, general and administrative		70,690		71,629			207,615		188,856
	Depreciation and amortization		10,601		9,667			32,233		27,969
	Restructuring and other non-recurring charges		-		4,815			5,636		9,817
	Total costs and expenses		264,623		244,454			771,227		680,321
	Income/(loss) from operations		20,879		(3,682)			43,615		22,793
	Net interest (expense)/income		(252)		131			(518)		303
	Income/(loss) before provision for income taxes		20,627		(3,551)			43,097		23,096
	Provision for income taxes		2,889		(888)			8,424		4,329
	Net income/(loss)		17,738		(2,663)			34,673		18,767
	Net income/(loss) per ordinary share
	Basic		$0.30		($0.04)			$0.58		$0.31
	Diluted		$0.29		($0.04)			$0.57		$0.31
	Weighted average number of ordinary shares
	Basic		59,754,010		60,471,985			59,939,570		60,381,814
	Diluted		60,366,137		61,063,020			60,391,199		61,096,464

ICON plc
Summary Balance Sheet Data
September 30, 2012 and December 31, 2011
(Dollars, in thousands)
				September 30,				December 31,
				2012				2011
				(Unaudited)				(Audited)
Net cash				179,913				174,177
Accounts receivable				231,097				201,338
Unbilled revenue				114,356				126,850
Payments on account				(185,835)				(150,792)
Total				159,618				177,396
Working Capital				209,148				253,514
Total Assets				1,135,229				1,035,467
Shareholder's Equity				719,041				681,544

ICON
Investor Relations, 1-888-381-7923
or
Brendan Brennan, Chief Financial Officer
+ 353 —1-291-2000
or
Sam Farthing, VP Investor Relations
+ 353 —1-291-2000

Source: ICON

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