Simulations Plus Reports Second Quarter FY2017 Financial Results

Keywords: financial results, gross profit, net revenues
Division: Simulations Plus

Simulations Plus, Inc. (Nasdaq: SLP), the premier provider of simulation and modeling software and consulting services for all phases of pharmaceutical discovery and development from the earliest discovery through all phases of clinical trials, today reported financial results for its second quarter of fiscal year 2017, the period ended February 28, 2017 (2QFY17).

2QFY17 highlights compared with 2QFY16:

  • Net revenues increased 10.5%, or $542,000, to a record $5.71 million from $5.16 million
  • Gross profit increased 6.5%, or $252,000, to $4.15 million from $3.90 million
  • SG&A increased 13.1%, or $226,000, to $1.95 million from $1.72 million
  • Income before taxes increased 5.5%, or $93,000, to $1.78 million from $1.69 million
  • Net income increased 4.4% to $1.20 million, or $0.07 per share, compared to $1.15 million, or $0.07 per share in 2QFY16

6MoFY17 highlights compared with 6MoFY16:

  • Net revenues increased 11.2%, or $1.12 million, to a record $11.12 million from $10 million
  • Gross profit increased 7.6%, or $578,000, to $8.23 million from $7.66 million
  • SG&A increased 12.1%, or $412,000, to $3.81 million from $3.4 million
  • R&D expenditures decreased 5.5%, or $75,000, to $1.28 million from $1.36 million in 6MoFY16
    • In 6MoFY17, $584,000 was capitalized and $699,000 was expensed
    • In 6MoFY16, $545,000 was capitalized and $813,000 was expensed
  • Income before taxes increased 10.1%, or $343,000, to $3.75 million from $3.41 million
  • Net income increased 13.6% to $2.56 million, or $0.15 per share, compared to $2.25 million, or $0.13 per share, in 6MoFY16

John Kneisel, chief financial officer of Simulations Plus, said: “We continue our trend of consistent revenue and earnings growth. As of today, cash remains in excess of $8.5 million after our two quarterly dividend distributions totaling over $1.7 million this fiscal year. This quarter, we will make our final payment of $1 million to TSRL as part of the royalty agreement buyout announced in May 2014, which has proven to be a strategically valuable decision for the Company.”

John DiBella, vice president for marketing and sales of Simulations Plus, said: “The first half of 2017 has seen us realize robust gains across all business categories, with software renewal rates of 96% in terms of fees, 43 software customers added, including new licenses at all major regulatory agencies, and 18% revenue growth in consulting services. With the recent releases of GastroPlus™ 9.5 and ADMET Predictor™ 8.1, coupled with the upcoming new versions of MembranePlus™ and PKPlus™, increased staffing, and the new distribution agreement in South Korea, we are well-positioned to penetrate new markets and close out the second half of the year on a strong note.”

Ted Grasela, president of Simulations Plus, added: “We have been successful in our recruitment efforts and are on-boarding software engineers and scientists to sustain our growth. We have accelerated development of the KIWI modeling and communication platform. Our goal is to drive model-informed drug development and bring new ways of collaboration between multidisciplinary scientists. The addition of scientists will bring in new creativity and extend our range of modeling and simulation services so that we can meet the needs of the changing business models favoring outsourcing in the pharmaceutical industry.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, concluded: “Once again, we have achieved record results for the quarter. Our momentum continues, and with the need for increased productivity and a reduction in the time and cost to bring new drugs to market, we expect the trend for ever-increasing use of modeling and simulation in pharmaceutical research to continue for the foreseeable future.”

For complete balance sheets, click here.