Record second quarter as revenues grow
10.5%, 6MoFY17 net income up 13.6%
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.”
Investor Conference Call
The Company will host a conference call on April 10, 2017, at
4:15 p.m. Eastern Time. All interested parties are invited to join
the call by registering at:
https://attendee.gotowebinar.com/register/4180367779839643905. On
registering, you will receive a confirmation e-mail with
instructions for joining the call. Please dial in five to ten
minutes prior to the scheduled start time. For listen-only mode,
you may dial +1 (631) 992-3221, and enter access code
784-451-032.
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.
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited) (Audited)
February 28, August 31, ASSETS
2017
2016
Current assets Cash and cash equivalents $ 7,426,811 $
8,030,284 Accounts receivable, net of allowance for doubtful
accounts of $0 4,668,219 3,009,517 Revenues in excess of billings
1,223,520 694,131 Prepaid income taxes 374,405 555,486 Prepaid
expenses and other current assets
296,394
410,811 Total current assets 13,989,349
12,700,229
Long-term assets
Capitalized computer software development
costs, net of accumulated amortization of $9,187,363 and
$8,613,487
4,023,627 4,013,127 Property and equipment, net 280,631 256,381
Intellectual property, net of accumulated amortization of
$1,712,500 and $1,408,750 4,362,500 4,666,250 Other intangible
assets net of accumulated amortization of $368,750 and $295,000
1,281,250 1,355,000 Goodwill 4,789,248 4,789,248 Other assets
34,082 34,082 Total
assets $ 28,760,687
$ 27,814,317
LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities Accounts payable $ 221,355 $ 108,111 Accrued
payroll and other expenses 538,575 481,610 Accrued bonuses to
officers 30,500 121,000 Other current liabilities - 8,274 Current
portion - Contracts payable 1,000,000 1,000,000 Billings in excess
of revenues 155,073 230,100 Deferred revenue
194,938 176,422 Total current
liabilities 2,140,441 2,125,517
Long-term liabilities
Deferred income taxes
2,755,636
2,956,206 Total liabilities
$
4,896,077 $ 5,081,723
Commitments and contingencies Shareholders'
equity Preferred stock, $0.001 par value 10,000,000 shares
authorized no shares issued and outstanding $ - $ - Common stock,
$0.001 par value 50,000,000 shares authorized 17,230,478 and
17,225,478 shares issued and outstanding 7,241 7,227 Additional
paid-in capital 11,673,696 11,376,007 Retained earnings
12,183,673 11,349,360 Total
shareholders' equity
$ 23,864,610
$ 22,732,594 Total liabilities and
shareholders' equity $
28,760,687 $
27,814,317
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
For the three and six months ended
February 28, 2017 and February 29, 2016
Three months ended Six months
ended (Unaudited) (Unaudited)
2017
2016
2017
2016
Net Revenues $ 5,705,590 $ 5,163,726 $ 11,123,525 $
10,002,346
Cost of revenues 1,553,952
1,263,741
2,889,935 2,347,088
Gross margin 4,151,638
3,899,985 8,233,590
7,655,258 Operating expenses
Selling, general, and administrative 1,948,136 1,722,844 3,811,692
3,399,278 Research and development
408,536
461,389
698,836 812,696
Total operating expenses
2,356,672
2,184,233 4,510,528
4,211,974 Income from
operations 1,794,966
1,715,752 3,723,062
3,443,284 Other income
(expense) Interest income 4,429 4,486 8,886 8,953
Gain (loss) on currency exchange
(14,441 )
(28,330 ) 20,486
(43,224 ) Total other
income (expense)
(10,012 )
(23,844 ) 29,372
(34,271 ) Income
before provision for income taxes 1,784,954 1,691,908 3,752,434
3,409,013 Provision for income taxes
(589,194
) (546,559 )
(1,195,109 )
(1,157,191 ) Net Income
$ 1,195,760
$ 1,145,349
$ 2,557,325
$ 2,251,822
Earnings per share Basic
$ 0.07 $
0.07 $ 0.15 $ 0.13 Diluted
$ 0.07 $ 0.07 $ 0.15
$ 0.13 Weighted-average common shares
outstanding Basic
17,233,017 17,005,649
17,229,586 16,985,869 Diluted
17,438,508
17,268,144 17,421,457 17,230,099
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version on businesswire.com: http://www.businesswire.com/news/home/20170410006115/en/
Simulations Plus Investor
RelationsMs. Renee
Bouche661-723-7723renee@simulations-plus.comorHayden IRMr. Cameron
Donahue651-653-1854cameron@haydenir.com
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