Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for pharmaceutical discovery and development from the earliest discovery through all phases of clinical trials, today released preliminary revenues for its fiscal fourth quarter (4QFY17) and full fiscal year 2017 (FY2017) ended August 31, 2017.
Mr. John R. Kneisel, chief financial officer of Simulations Plus, stated: “This quarter represents the first quarter where we’re reporting preliminary consolidated annual and fourth quarter revenues that include three divisions – Simulations Plus (Lancaster, CA), Cognigen (Buffalo, NY), and the newly acquired DILIsym Services, Inc. (Research Triangle Park, NC), which acquisition was completed on June 1, 2017. Net income will not be released until we complete our annual audit and review of our Annual Report on Form 10-K. We expect to file our 10-K with the U.S. Securities and Exchange Commission on or before the November 14, 2017, deadline.”
Preliminary results for the fiscal year:
- Consolidated software and software-related services increased 7.7% to a record $14.9 million for FY2017 compared to $13.8 million in FY2016
- Consolidated consulting revenues increased 50.5%, or $3.1 million, to $9.2 million compared to $6.1 million in FY2016
- Total preliminary consolidated revenues for FY2017 increased 20.9%, or $4.2 million, to a record $24.1 million, compared to $20.0 million for FY2016
- For FY2017, approximately 61.7% of revenues came from software licenses and software-related services and approximately 38.3% of revenues came from consulting studies and collaborations
- As of August 31, 2017, consolidated cash was $6.2 million after significant cash distributions made this fiscal year, which included: the final $1 million payment to TSRL in April; approximately $5 million of DILIsym Services, Inc. acquisition-related payments disbursed subsequent to May 31, 2017; and a distribution of approximately $863,000 in cash dividends to shareholders on August 4, 2017 (for a total of $3.45 million in dividends distributed to shareholders during FY2017). Cash as of today is $7.2 million.
Preliminary results for the quarter:
- Consolidated software and software-related services increased 12.2% to a record $2.9 million for 4QFY17 compared to $2.6 million in 4QFY16; DILIsym Services, Inc., accounted for approximately $200,000 of software-related revenues in this quarter
- Consolidated 4QFY17 consulting revenues increased 144.9%, or $2.0 million, to $3.4 million from $1.4 million in 4QFY16; DILIsym Services, Inc., accounted for $1.0 million of consulting revenues in this quarter. Buffalo Division (Cognigen) revenues were up over $800,000 over 4QFY16 and up $400,000 over 3QFY17
- Total preliminary revenues for 4QFY17 increased 58.3% to $6.3 million, a new fourth quarter record, compared to $4.0 million reported for 4QFY16
- For the quarter, approximately 46.2% of revenues came from software and software-related services, and approximately 53.8% of revenues came from consulting studies and collaborations
- During 4QFY17, the company added 25 new software customers and a total of 88 for FY2017
- Annual recurring customer renewal rate was 88% (total accounts) and 94% based on revenue.
Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “These results represent solid evidence of the continued strong financial performance of Simulations Plus in all three divisions. Our scientific and administrative staffs continue to perform as the elite professionals they are, providing outstanding shareholder value by the excellent products, services, and globally famous support they provide to our customers. I could not be more proud of our teams in every division. The addition of DILIsym Services, Inc., to the Simulations Plus family took place at the beginning of our fourth fiscal quarter, and we are already realizing beneficial synergies in products and services with our new team members, as we have done for the past three years with our Cognigen teammates. Lancaster and Buffalo have worked together for three years in applying physiologically based pharmacokinetics (PBPK) to address issues in clinical pharmacology, and Cognigen scientists are now well-trained in applying GastroPlus™ PBPK models in their consulting work. In addition, just since June 1, we are already testing a software methodology for linking our GastroPlus physiologically based pharmacokinetics (PBPK) outputs to the DILIsym® simulation for drug-induced liver injury. These three divisions complement each other beautifully, and we expect to see further growth as we work together to provide solutions to our pharmaceutical, food, cosmetics, and chemical industry customers.”
John Kneisel concluded: “Our policy has been to release preliminary consolidated revenues every quarter; however, as stated in our June 15, 2017, press release, this is the last quarter where we will release preliminary revenues at the end of the quarter. The growth of the Company and the shifting of revenue from primarily software (with its straightforward revenue recognition) to an increased percentage of consulting projects across the three divisions has made the process of compiling revenues more complicated. Beginning with our 2018 fiscal year, our policy will be to release our final and complete revenues in conjunction with the filing of our quarterly and annual earnings releases and/or SEC filings– Forms 10-Q and 10-K.”