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Jul 10, 2019
  |  Press Release

Simulations Plus Reports Third Quarter FY2019 Financial Results

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 2019 (3QFY19) and the first nine months of fiscal year 2019 (9moFY19), the period ended May 31, 2019.

3QFY19 highlights compared with 3QFY18:

  • Net revenues increased 16.2% to $9.9 million, an increase of $1.4 million over $8.6 million
  • Gross profit was up 16.6% to $7.6 million, an increase of $1.1 million over $6.5 million
  • SG&A was $3.1 million, an increase of 18.6% or $483,000 over $2.6 million
  • Total R&D expenditures were $1,066,000, an increase of $73,000, or 7.4% over $993,000
    • In 3QFY19, $422,000 was capitalized and $643,000 was expensed
    • In 3QFY18, $485,000 was capitalized and $508,000 was expensed
  • Income before taxes increased 13.4% to $3.9 million, an increase of $456,000 over $3.4 million
  • Net income increased 20.1% to $2.9 million, an increase of $483,000 over $2.4 million
  • Diluted earnings per share increased 18.8% to $0.16 from $0.13

9moFY19 highlights compared with 9moFY18:

  • Net revenues increased 12.9% to $25.9 million, an increase of $3.0 million over $23.0 million
  • Gross profit was up 12.3% to $19.2 million, an increase of $2.1 million over $17.1 million
  • SG&A was $8.6 million, an increase of $1.3 million, or 17.2%, over $7.4 million
  • Total R&D expenditures were $3.3 million, an increase of $274,000, or 9.2% over $3.0 million
    • For 9moFY19, $1.4 million was capitalized and $1.9 million was expensed
    • For 9moFY18, $1.6 million was capitalized and $1.4 million was expensed
  • Income before taxes increased 3.3% to $8.6 million, an increase of $271,000 over $8.3 million
  • Net income decreased 14.1% to $6.5 million, a decrease of $1.1 million from $7.6 million; this change included the one-time second-quarter tax benefit of $1.5 million reported in FY18. Without the adjustment, year-to-date income would have been up $427,000, or 7.0%
  • Diluted earnings per share decreased 14.9% to $0.36 from $0.43. In FY18, the major change in diluted earnings per share came from the $1.5 million tax adjustment that accounted for an $0.08 increase in diluted earnings per share

Shawn O’Connor, chief executive officer of Simulations Plus, said: “During the quarter, we continued to make significant progress with the key initiatives we set forth at the beginning of the year. These initiatives include investments in sales and marketing strategies to take advantage of increasing adoption of modeling and simulation applications in the pharmaceutical market. In addition, we have accelerated our efforts to attract scientific talent to increase our services capacity. We have initiated efforts to increase our local presence in global markets. These efforts are beginning to show returns in our increased growth rate.”

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, 2019, was $10.3 million, and $12.9 million as of July 8, 2019. Since the beginning of this fiscal year, we continued to invest in and have released new versions of all our major programs. In just the last six months, we have released new versions of GastroPlus®ADMET Predictor®KIWI™, DILIsym®and NAFLDsym®. We continue to expand our base of loyal customers.”

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 August 1, 2019, to shareholders of record as of July 25, 2019. 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 invites all interested persons to attend its conference call at 4:15 p.m. Eastern Time on July 10, 2019. 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 teleconference will also be available by dialing (914) 614-3221, and entering access code 952-038-001. A replay of the webcast will be available at the Investors section of the Simulations Plus website following the call.

For a condensed consolidated statement of operations & consildated balance sheets table visit businesswire.com

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