Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation solutions for the pharmaceutical and biotechnology industries, today reported financial results for its fourth quarter and full year 2021 fiscal year, ended August 31, 2021.
“We finished the year in a better position than we anticipated following our third quarter earnings report driven by both strong GastroPlus® sales and continued momentum in ADMET Predictor® sales following the introduction of new product functionality,” said Shawn O’Connor, chief executive officer. “We also benefitted from our consulting services business returning to more normalized operations with an increasing backlog and improved pipeline of new opportunities, furthering our belief that the events of the third quarter were a short-term occurrence, and the business remains fundamentally healthy.”
Fourth Quarter Financial Highlights (compared with the corresponding period last fiscal year):
- Total revenue increased 3% to $9.8 million
- Software revenue increased 14% to $5.4 million, representing 55% of total revenue
- Services revenue declined 7% to $4.4 million, representing 45% of total revenue
- Gross profit increased 3% to $7.1 million
- Gross margin was unchanged at 72%
- Net income was $0.3 million compared to $2.2 million for the period last fiscal year
- Diluted earnings per share was $0.01 compared to $0.11 for the period last fiscal year
Full Year Financial Highlights (compared with the corresponding period last fiscal year):
- Total revenue increased 12% to $46.5 million
- Software revenue increased 28% to $27.7 million, representing 60% of total revenue
- Services revenue declined 6% to $18.8 million, representing 40% of total revenue
- Gross profit increased 16% to $35.9 million
- Gross margin increased from 74% to 77%
- Net income was $9.8 million compared to $9.3 million for the period last fiscal year
- Diluted earnings per share was $0.47 compared to $0.50 for the period last fiscal year
Fiscal 2022 Financial Outlook
The Company expects full year fiscal 2022 total revenue to be in the range of $51 million to $53 million, representing 10% to 15% year-over-year growth.
Software revenue is expected to be in the range of 55% to 60% of total revenue and services revenue is expected to be in the range of 40% to 45% of total revenue. Services revenue is expected to recover sequentially throughout fiscal 2022 and any acquisitions would be incremental to the revenue growth target above.
Mr. O’Connor concluded, “We believe our proven business model and increasing software revenue mix will enable us to grow our bottom line faster than our top line, while generating strong cash flows to further strengthen our balance sheet. Our already strong balance sheet reduces the need to secure additional capital as we’re evaluating strategic acquisition opportunities that we believe can further position us for success and support our revenue CAGR target above 20% as we’ve achieved since our Cognigen acquisition in fiscal 2015.”
Quarterly Dividend Declared
On October 13, 2021, the Company’s Board of Directors declared a cash dividend of $0.06 per share of the Company’s common stock, payable on November 1, 2021, to shareholders of record as of October 25, 2021. 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 will host a conference call on October 25, 2021, at 5 p.m. Eastern Time. All interested parties are invited to join the call by registering here or by calling 1-201-389-0879. Please join five to 10 minutes before the scheduled start time. The call will be simulcast live on the Internet, and the webcast will be available on the Investors page of the Simulations Plus website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call.
For complete balance sheets, click here.