Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of software for pharmaceutical discovery and development, today reported its financial results for its 2018 fiscal year (FY18) and fourth quarter (4Q18) ended August 31, 2018.
Results for the 2018 fiscal year (FY18):
- Revenues were $29.7 million, up 22.9% over $24.1 million in FY17
- Gross profit was up 21.5%, or $3.8 million, to $21.7 million, from $17.8 million in FY17
- SG&A expense increased 16.9% to $9.6 million from $8.2 million in FY17
- As a percent of sales, SG&A decreased 1.7% to 32.3% from 34.0% in FY17
- R&D expenditures were $3.9 million in FY18, up 45%, or $1.2 million, over $2.7 million in FY17
- For FY18, $2.1 million was capitalized and $1.8 million was expensed
- For FY17, $1.4 million was capitalized and $1.4 million was expensed
- Operating income was $10.3 million up $2.0 million from $8.3 million in FY17
- Net income, inclusive of a $1.2 million income tax benefit, was $8.9 million, up 54.4% from $5.8 million in FY17
- Net income from operations increased 23.0%
- Net income per fully diluted share was $0.50, up 51.4%, or $0.17, from $0.33 for FY17
- Cash was $9.4 million, an increase of $3.2 million, or 51.2%, from $6.2 million at the end of FY17. Cash today is $9.5 million
Results for the fourth quarter of FY18 (4Q18):
- Revenues were $6.7 million, up $422,000, or 6.7%, compared to $6.3 million in 4Q17
- Gross profit was up 6.4% to $4.6 million, an increase of $274,000 from $4.3 million in 4Q17
- SG&A decreased 8.2%, or $200,000, to $2.2 million from $2.4 million in 4Q17
- R&D expenditures were $951,000, an increase of 9.3% from $870,000 in 4Q17
- For 4Q18, $514,000 was capitalized and $437,000 was expensed
- For 4Q17, $455,000 was capitalized and $415,000 was expensed
- Operating income was $1.9 million up $452,000, or 31.3%, from $1.4 million in 4Q17
- Net income was $1.34 million, up 16.2% from $1.15 million in 4Q17
- Earnings per fully diluted share were $0.07, up 14.6%, or $0.01, over $0.06 in 4Q17
Shawn O’Connor, chief executive officer of Simulations Plus, said: “Fiscal 2018 financial results for the Company were excellent, continuing the trend of strong revenue growth and profitability the Company has enjoyed for many years. Software revenues, representing 57% of total revenues, grew 13% in fiscal 2018 while consulting revenues, representing 43% of revenues, grew at a rate of 38%. Each division contributed to this outstanding performance. Our Lancaster, CA division continued its steady and consistent growth overall and an increased demand from clients driving 70% growth in its service business. Cognigen continues to grow with an increasing number of clients and projects from new and existing clients. DILIsym, in its first full year since its acquisition, contributed $4.3 million to fiscal 2018 revenues. Lastly, the Company generated cash from operations of $9.3 million in fiscal 2018 supporting the continuance of its quarterly dividend to shareholders this past year.”
“The pharmaceutical industry continues its efforts to reduce the timelines and cost of the drug development process,” added Mr. O’Connor. “Today, there is growing momentum to adopt and apply model-based software tools and methodologies in pharmaceutical drug development, drug safety and efficacy and personalized medicine within the industry. The Company is well positioned to support these efforts with its portfolio of software products and skilled consulting resources.”