Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for all stages 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 2017, the period ended November 30, 2016 (1QFY17).
1QFY17 highlights compared with 1QFY16:
- Net revenues increased 12.0%, or $579,000, to a new first quarter record $5.42 million vs. $4.84 million
- Gross profit increased 8.7% to $4.08 million from $3.76 million
- SG&A was $1.86 million, an increase of $187,000 or 11.2%, from $1.68 million
- SG&A as a percentage of revenues decreased slightly from 34.6% to 34.4%
- Income before taxes increased $250,000 or 14.6%, to $1.97 million from $1.72 million
- Net income increased $255,000 or 23.1%, to $1.36 million from $1.11 million
- Diluted earnings per share increased 22% or $0.014, to $0.078 from $0.064 per share
John Kneisel, chief financial officer of Simulations Plus, said: “Fiscal year 2017 is starting out with good first quarter profits, bolstered by strong consulting revenues. Our ability to effectively leverage our operations is enabling us to grow our bottom line at nearly twice the pace we are growing revenues, driving a 22% improvement in earnings per share.”
Ted Grasela, Company president, added: “It is rewarding to see the increase in business from both existing and new clients. This represents recognition and appreciation for the quality and value of our technology and consulting services. We are aggressively looking to expand our staff to meet the growing demand for modeling and simulation consulting support and are recruiting additional software engineers to continue development of our PBPK modeling and pharmacometrics communication platforms in order to streamline model-based drug development activities and increase license sales.
John DiBella, vice president for marketing and sales of Simulations Plus, said: “The positive trend of solid software sales and increasing requests for our consulting services continued in 1QFY17. Software license revenue increased 7.2%, driven by robust renewal rates and 28 new organizations, or new departments at existing organizations, now utilizing our technology. Revenue from consulting services increased 21.1%, as we applied our technology and expertise in a wide range of projects and engaged with 13 new clients. Education remains a key focus for us in 2017, as we have scheduled workshops for the U.S., Europe, and Asia to allow us to train more scientists on the applications of our tools. This, coupled with new releases of all major software products expected in FY17, gives us confidence in our ability to continue expanding our client base.”
Walt Woltosz, chairman and chief executive officer of Simulations Plus, concluded: “Fiscal year 2017 is off to a very good start with this record first quarter. Both divisions delivered strong performance in this first quarter, and our Buffalo division is now generating significant new revenues from our five-year, nearly $5 million consulting contract with a major research foundation in addition to our typical consulting work in that division. Software sales continue to grow as the pharmaceutical industry continues to adopt simulation and modeling technology to improve productivity and reduce wasted R&D efforts on compounds that would have failed. We expect this trend to continue in 2017, and Simulations Plus is increasingly well-positioned to benefit from this trend.”
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