Simulations Plus Reports Preliminary Revenues for Fourth Quarter and Fiscal Year 2016
September 12 2016 - 8:30AM
Business Wire
Company Reports Record Fourth-Quarter and
Full-Year Revenues
Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of
consulting services and software for pharmaceutical discovery and
development, today released preliminary revenues for its fiscal
fourth quarter (4QFY16) and full fiscal year 2016 (FY2016) ended
August 31, 2016.
Mr. John R. Kneisel, chief financial officer of Simulations
Plus, stated: “We have completed our second year of operations
following our September 2014 acquisition of Cognigen Corporation;
an acquisition which delivered the expected benefits such as
expanded addressable market, synergies across our software and
consulting business, increased scale, and greater profitability. In
accordance with our policy to release timely financial information
to our shareholders, we are releasing preliminary consolidated
annual and fourth quarter revenues. Net income will not be released
until completion of 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,
2016 deadline.”
Preliminary results for the fiscal year:
- Consolidated software and
software-related services increased 10.7% to a record $13.85
million for FY2016 compared to $12.5 million in FY2015
- Consolidated consulting revenues
increased 4.1%, or $238,000, to $6.04 million compared to $5.80
million in FY2015
- Total preliminary consolidated revenues
for FY2016 increased 8.6%, or $1.57 million, to a record $19.89
million, compared to $18.31 million for FY2015
- For FY2016, approximately 69.5% of
revenues came from software licenses and software-related services
and approximately 30.5% of revenues came from consulting studies
and collaborations
- Cash remains strong. As of August 31,
2016, cash was $8.0 million after distributing approximately
$861,000 in dividends to shareholders on August 18, 2016 (for a
total of $3.41 million in dividends distributed during FY2016),
along with payments to TSRL and the final payment of $720,000 for
the Cognigen acquisition made in July. Cash as of today is $8.5
million.
Preliminary results for the quarter:
- Consolidated software and
software-related services increased 19.1% to a record $2.60 million
for 4QFY16 compared to $2.18 million in 4QFY15
- Consolidated 4QFY16 consulting revenues
decreased 16.6%, or $225,000, to $1.28 million from $1.53 million
in 4QFY15, impacted by several customers’ failed clinical trials
and delayed trials that we noted last quarter
- Total preliminary revenues for 4QFY16
increased 4.4% to $3.87 million, a new fourth quarter record,
compared to $3.71 million reported for 4QFY15
- For the quarter, approximately 66.3% of
revenues came from software and software-related services, and
approximately 33.7% of revenues came from consulting studies and
collaborations
- During 4QFY16, the company added 21 new
software customers and a total of 76 for FY2016
- Annual recurring customer renewal rate
was 88% (total accounts) and 95% based on revenue.
John DiBella, vice president for marketing and sales of
Simulations Plus, said: “As anticipated, FY2016 finished on a solid
note, with a substantial percentage of software revenue growth
coming from new clients, including several licenses from
non-pharmaceutical markets subscribing to our tools. The pipeline
for PBPK and pharmacometric modeling projects is strong and
continues to improve as we head into FY2017, helping to offset a
modest decrease in consulting revenue in the fourth quarter of
fiscal year 2016. We have a busy fall season ahead of us, as we are
attending numerous conferences to promote several new product
releases, including PKPlus™, and hosting trainings and workshops
around the globe to continue to educate industry and regulatory
scientists on mechanistic modeling & simulation. We believe
these efforts should help us maintain our longstanding revenue
growth momentum.”
Walt Woltosz, chairman and chief executive officer of
Simulations Plus, added: “We’re very pleased with a 19% increase in
software and software-related services revenues. Of course, we’re
not satisfied with the negative growth in consulting revenues for
the fourth quarter, but we are pleased that for the fiscal year,
consulting revenues showed over four percent increase in spite of
the negative impact of the third and fourth quarter effects when
some of our customers’ clinical trials failed and some were
delayed. With our announcement of the launch of PKPlus™ two weeks
ago and continued growth in our other software revenues and in our
consulting business, we are expecting a strong new fiscal
year.”
About Simulations Plus, Inc.
Simulations Plus, Inc., is a premier developer of drug discovery
and development software as well as a leading provider of both
preclinical and clinical pharmacometric consulting services for
regulatory submissions. The company is a global leader focused on
improving the ways scientists use knowledge and data to predict the
properties and outcomes of pharmaceutical and biotechnology agents.
Our software is licensed to and used in the conduct of drug
research by major pharmaceutical and biotechnology companies and
regulatory agencies worldwide. Our innovations in integrating new
and existing science in medicinal chemistry, computational
chemistry, pharmaceutical science, biology, and physiology into our
software have made us the leading software provider for
physiologically based pharmacokinetic modeling and simulation. For
more information, visit our website at
www.simulations-plus.com.
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Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995 – With the exception of historical
information, the matters discussed in this press release are
forward-looking statements that involve a number of risks and
uncertainties. Words like “believe,” “expect” and “anticipate” mean
that these are our best estimates as of this writing, but that
there can be no assurances that expected or anticipated results or
events will actually take place, so our actual future results could
differ significantly from those statements. Factors that could
cause or contribute to such differences include, but are not
limited to: our ability to maintain our competitive advantages,
acceptance of new software and improved versions of our existing
software by our customers, the general economics of the
pharmaceutical industry, our ability to finance growth, our ability
to continue to attract and retain highly qualified technical staff,
our ability to identify and close acquisitions on terms favorable
to the Company, and a sustainable market. Further information on
our risk factors is contained in our quarterly and annual reports
as filed with the U.S. Securities and Exchange Commission.
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Simulations Plus Investor
RelationsMs. Renee Bouche,
661-723-7723renee@simulations-plus.comorHayden IRMr. Cameron Donahue,
651-653-1854cameron@haydenir.com
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