Simulations Plus Reports Record First Quarter FY2020 Financial Results

Keywords: financial results, investor relations
Division: Simulations Plus

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 2020, the period ended November 30, 2019 (1QFY20).

1QFY20 highlights compared with 1QFY19:

  • Net revenues increased 24.8%, or $1.9 million, to $9.4 million from $7.5 million
  • Gross profit increased 26.7%, or $1.4 million, to $6.8 million from $5.3 million
  • Gross profit as a percentage of revenues increased to 71.9% from 70.8%
  • SG&A was $3.5 million, an increase of 29.2%, or $794,000, from $2.7 million
  • SG&A as a percentage of revenues increased to 37.4% from 36.1%
  • R&D expense decreased slightly to $526,000 from $530,000
  • Income before taxes increased to $2.7 million from $2.0 million
  • Net income increased $522,000, or 34.0%, to $2.1 million from $1.5 million
  • Diluted earnings per share increased $0.02 to $0.11 from $0.09 per share

Shawn O’Connor, chief executive officer of Simulations Plus, said: “This was a very strong start to our fiscal year thereby demonstrating the effects of our investments in sales and marketing and scientific consulting resources to accelerate our revenue growth above historical levels. The quarter also benefitted from our consulting team’s response to accelerated project delivery requests from two clients in support of critical development and regulatory strategies. This underscores the value we provide our customers and the dedication of our scientists to support our client’s success. We continue to expect full-year growth in the 15-20% range.”

John Kneisel, chief financial officer of Simulations Plus, added: “Simulations Plus continues to generate strong revenue growth which produced an increase in fully diluted EPS of $0.02. Net cash provided by operations remains solid at $2.6 million this quarter. During the quarter, we adopted the provisions of ASC 842, Leases. Under the standard we have recognized operating leases as Right-of-Use assets, with a corresponding lease liability. As of the beginning of this fiscal year, we increased assets and liabilities by approximately $903,000 which will be taken to expense over the life of the respective leases. The effect on operating income was not significant as the amount expensed approximates the rental commitments; moreover, we do not anticipate any material effect on operating earnings going forward.”

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 3, 2020, to shareholders of record as of January 27, 2020. 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 Thursday, January 9, 2020. 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 601-658-992. A replay of the webcast will be available at the Investors section of the Simulations Plus website following the call.

For complete balance sheets, click here.