Simulations Plus Reports First Quarter FY2016 Financial Results

Division: PBPK

Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for all phases of pharmaceutical discovery and development from the earliest discovery through all phases of clinical trials, today reported financial results for its first quarter of fiscal year 2016, the period ended November 30, 2015 (1QFY16).

1QFY16 highlights compared with 1QFY15:

  • Net revenues increased 18.4%, or $752,000, to a new record $4.84 million from $4.09 million
  • Gross profit increased 21.6% to $3.76 million from $3.09 million
  • SG&A was $1.68 million, a decrease of $403,000, or 19.4%, from $2.08 million
  • Income before taxes increased $971,000, or 30.1%, to $1.72 million from $746,000
  • Net income increased $578,000, or 109%, to $1.11 million from $529,000
  • Diluted earnings per share increased $0.03 to $0.06 from $0.03 per share

John Kneisel, chief financial officer, said: “This quarter is the first truly comparative period since the Company acquired Cognigen Corporation at the beginning of our 2015 fiscal year. It reflects earnings as anticipated from the acquisition as well as quarterly expenses unencumbered by acquisition costs. Last year’s first quarter (1QFY15) operating income was substantially affected by approximately $400,000 in one-time fees and expenses that were incurred for the acquisition. We continue to maintain our strong financial position with current cash balances of approximately $7.8 million and no loans.”

Ted Grasela, president of the Company, added: “We continue to offer new and expanded consulting services to clients of both companies. In addition, software development activities have continued apace and exciting opportunities are emerging as our scientists gain cross-disciplinary experience during our collaborations.”

John DiBella, vice president for marketing and sales for Simulations Plus, said: “The positive trend of strong software sales and increasing requests for our consulting services continued in 1QFY16. The number of software units licensed saw a 29% increase compared to 1QFY15, which was driven by robust renewal rates and 23 new organizations, or new departments at existing organizations, now utilizing our technology. Education remains a key focus for us in 2016, as we have an aggressive workshop schedule planned for the U.S., Europe, and Asia to allow us to train more scientists on the applications of our technology. This, coupled with new releases of all major software products expected in FY16, gives us confidence in our ability to continue expanding our client base. In addition to our vigorous marketing and sales activities in 1QFY16, we introduced a unified Simulations Plus brand to better present our comprehensive offering of powerful software and consulting expertise, which we believe will resonate across different departments, companies, and markets. We will be embarking on a website redesign project in 2016 to support this effort.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Fiscal year 2016 is off to a very good start with this record first quarter. I am particularly excited about the upcoming release of our new PKPlus™ software, which we believe will have a significant impact on revenues and earnings later in FY16. I’m also encouraged by the contacts we’ve been making in the aerospace industry regarding the products we’ve been developing for use in the aerospace industry. These products use our artificial neural network ensemble modeling engine and we are pursuing customers and funding to develop customized tools and applications in this new market.”

For complete balance sheets, click here.