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 third quarter of fiscal year 2018 (3QFY18) and the first nine months of fiscal year 2018 (9moFY18), the period ended May 31, 2018.
3QFY18 highlights compared with 3QFY17:
- Net revenues increased 26.7% to $8.6 million, an increase of $1.8 million from $6.7 million
- Gross profit was up 23.1% to $6.5 million, an increase of $1.2 million from $5.3 million
- SG&A was $2.6 million, an increase of 33.2% or $649,000 from $2.0 million
- R&D expenditures were $993,000 an increase of $395,000, or 66.0% over $598,000
- In 3QFY18, $485,000 was capitalized and $508,000 was expensed
- In 3QFY17, $344,000 was capitalized and $254,000 was expensed
- Income before taxes increased 10.1% to $3.4 million, an increase of $313,000 from $3.1 million
- Net income increased 15.7% to $2.4 million, an increase of $327,000 from $2.1 million
- Diluted earnings per share increased 13.7% to $0.13 from $0.12.
9moFY18 highlights compared with 9moFY17:
- Net revenues increased 28.6% to $23.0 million, an increase of $5.1 million from $17.9 million
- Gross profit was up 26.4% to $17.1 million, an increase of $3.6 million from $13.5 million
- SG&A was $7.4 million, an increase of $1.6 million, or 27.5%, from $5.8 million
- R&D expenditures were $3.0 million, an increase of $1.1 million, or 58.3% over $1.9 million
- For 9moFY18, $1.6 million was capitalized and $1.4 million was expensed
- For 9moFY17, $928,000 was capitalized and $953,000 was expensed
- Income before taxes increased 21.4% to $8.3 million, an increase of $1.5 million from $6.8 million
- Net income increased 63.8% to $7.6 million, an increase of $3.0 million from $4.6 million; this included the one-time second-quarter tax benefit of $1.5 million reported last quarter. Without the adjustment, year-to-date income would have been $6.1 million, up $1.5 million or 31.5%
- Diluted earnings per share increased 60.2% to $0.43 from $0.27, the $1.5 million tax adjustment accounted for $0.08 of the increase in diluted earnings per share
Walt Woltosz, chairman of the board of Simulations Plus, said: “Simulations Plus continues to execute on its growth strategy and deliver quantifiable value to its expanding customer base. With more than a decade of consistent growth in revenue and earnings, we believe we are well-positioned for continued success, especially as in silico modeling takes on an increasing importance with our customers. We believe simulation and modeling, and consulting services based on them, are essential components of reducing the cost and time required for drug discovery and development. I believe it is an appropriate time for me to turn over the day-to-day leadership of our strong organization to Shawn O’Connor, our experienced new CEO.”
John Kneisel, chief financial officer of Simulations Plus, added: “We continue to deliver consistent growth and profitability, and maintain a strong cash position. Consolidated cash as of May 31, 2018, was $7.2 million, and $9.9 million as of July 9, 2018. Our financial position has allowed us to make strategic investments over the last several years and enabled continued investment in research and development to bolster our strategic position in the market. This year we have released new versions of GastroPlus™, ADMET Predictor ™, PKPlus™, KIWI™, DILIsym™ and are working on NAFLDsym™. As the recognized leader in the space, with a growing base of loyal customers, these product introductions will help us capture market share and better serve the industry.”
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