Simulations Plus, Inc. (Nasdaq:SLP), the leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemicals, and consumer goods industries, today reported financial results for its first quarter of fiscal year 2019, the period ended November 30, 2018 (1QFY19).
1QFY19 highlights compared with 1QFY18:
- Net revenues increased 6.6%, or $467,000, to $7.5 million from $7.1 million
- Gross profit increased slightly and remained at $5.3 million
- Gross profit as a percentage of revenues decreased from 75.5% to 70.8%
- SG&A was $2.7 million, an increase of 12.9%, or $311,000, from $2.4 million
- SG&A as a percentage of revenues increased to 36.1% from 34.1%
- R&D expense increased 46.8% or $169,000, to $530,000 from $361,000
- Income before taxes decreased $495,000, to $2.0 million from $2.5 million
- Net income decreased $180,000, or 10.5%, to $1.5 million from $1.7 million
- Diluted earnings per share decreased $0.01 to $0.09 from $0.10 per share
Shawn O’Connor, chief executive officer of Simulations Plus, said: “Strong first quarter revenue growth in addition to key new business closures after quarter end support our outlook for full year revenue growth of 10-15%. We are investing in sales and marketing initiatives and our consulting service organization’s staff to respond to the opportunities we see in the marketplace. These investments impacted our expenses in this quarter but will position us well in quarters ahead to achieve anticipated profitable growth. Certain expenses lines, such as R&D, will remain higher, but expected revenue growth in coming quarters should move us back towards historical profitability levels as expenses as a percent of revenues are more in-line with historical levels.”
John Kneisel, chief financial officer of Simulations Plus, added: “During the quarter, we completed our implementation of FASB Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), a new guidance on Revenue Recognition. ASC 606 had minimal impact on our current revenue, we expect it may have some impact on the timing of revenue recognition and service revenue margins on certain contracts going forward, but we do not anticipate significant changes to our annual historical service margins due to the minimal number of projects for which the standard changed revenue recognition.”
Quarterly Dividend Declared
The Company’s Board of Directors has declared a cash dividend of $0.06 per share of the Company’s common stock payable on February 1, 2019, to shareholders of record as of January 25, 2019. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.
Investor Conference Call
The Company has announced an investor conference call that will be webcast live at 1:15 p.m. PST/4:15 p.m. EST on Wednesday, January 9, 2019. The live webcast/teleconference will be accessible by registering here. Please dial in five to ten minutes prior to the scheduled start time. A live, listen-only webcast will also be available by dialing (914) 614-3221, and entering access code 793-421-673. A replay of the webcast will be available at the Investors section of the Simulations Plus website following the call.
For a condensed consolidated statement of operations & consildated balance sheets table visit businesswire.com