Simulations Plus Reports Record Preliminary Revenues for Third Quarter FY2017
June 15 2017 - 8:30AM
Business Wire
Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of
consulting services and software for pharmaceutical discovery and
development, today released preliminary revenues for the third
quarter of its fiscal year 2017, the period ended May 31, 2017
(3QFY17).
Mr. John Kneisel, chief financial officer of Simulations Plus,
Inc., stated: “In accordance with our policy to release timely
financial information to our shareholders, we are releasing
preliminary revenues for 3QFY17. Earnings will not be released
until just prior to the filing of our quarterly report on Form
10-Q. We expect to file our 10-Q with the U.S. Securities and
Exchange Commission on or before the July 10, 2017 deadline.”
Kneisel continued, “Next quarter will be the last time we will
release preliminary revenues at the end of the quarter, likely
occurring at the end of September. With the continued growth of the
Company, the revenue mix has shifted from mostly software, for
which revenue recognition is straightforward, to a much higher
percentage of consulting projects over three divisions. Compiling
revenues for a variety of contract types and master services
agreements is now much more complicated. As a result, beginning
with the new fiscal year we will adjust our policy and follow the
approach of the majority of public companies, releasing our
complete results in conjunction with the filing of our periodic
results on Form 10-Q and 10-K with the SEC.”
Preliminary results for the quarter:
- Preliminary revenues for the three
months ended May 31, 2017, were $6.69 million, compared to $6.01
million for the same period in 2016. This represents an increase of
11.3%, or $680,000.
- Preliminary revenues for the nine
months ended May 31, 2017, were $17.82 million, compared to $16.01
million for the same period in 2016. This represents an increase of
11.2% or $1.8 million.
- Approximately 71.2% of 3QFY17 revenues
were from software and software-related training services.
- Software and software-related services
were up approximately 4.9% for 3QFY17 compared to 3QFY16.
- Approximately 28.8% of 3QFY17 revenues
were from consulting services and analytical studies including
collaborations.
- Lancaster analytical study and
collaboration revenues were approximately $219,000 for 3QFY17
increasing by $66,000, or 43.5%, compared to 3QFY16.
- Buffalo preliminary revenues increased
by 29.4%, or $397,000, to $1.74 million for 3QFY17 from $1.3
million for 3QFY16.
- During 3QFY17, the company added 20 new
software customers and a total of 63 for the nine months ended May
31, 2017.
- Cash remains strong: as of May 31,
2017, cash was $8.2 million. Consolidated cash as of June 12, 2017,
was $5.6 million. On June 1, 2017, the Company acquired DILIsym
Services, Inc. of Research Triangle Park, North Carolina, and
approximately $5 million of acquisition-related payments were
disbursed subsequent to May 31, 2017. In addition, during the
quarter ended May 31, 2017, the Company made a dividend
distribution of approximately $862,000 on May 15, 2017, and the
final payment of $1,000,000 to TSRL was made in April.
John DiBella, vice president for marketing and sales of
Simulations Plus, said: “Our record third quarter revenue numbers
were driven by the sustained increase in requests for consulting
services in both Buffalo and Lancaster. To meet this strong demand,
we added several scientists to our teams in the third fiscal
quarter. While we also achieved growth in software and
software-related services in the third quarter, it was below our
normal levels, as our software renewal revenue was impacted by the
merger of two companies and the resulting synchronization of
software licenses that would have been an additional $110,000. We
still delivered 20% growth in the number of license units sold,
achieved robust sales performance in Asia, and continued to
penetrate into non-pharmaceutical markets. With the recent release
of GastroPlus™ v9.5, expected new versions of PKPlus™ and
MembranePlus™, and workshops scheduled in Korea, the United States,
and Japan this fall, and of course the acquisition of DILIsym
Services, Inc. that we expect to add to revenues and earnings, we
look forward to ending our fiscal year 2017 on a high note.”
Dr. Ted Grasela, president of Simulations Plus, added, “Our
clients recognize the value of the synergies between Buffalo and
Lancaster as reflected in the growing demand for our services. I
look forward to building high-value relationships with our new
colleagues in DILIsym.”
Walt Woltosz, chairman and chief executive officer of
Simulations Plus, said: “The third fiscal quarter is yet another in
a long string of record quarters for Simulations Plus, with growth
on all fronts. The especially strong growth in consulting services
in both Lancaster and Buffalo is evidence of the value our
scientific teams provide. We now begin our first quarter including
our DILIsym Services, Inc. division in Research Triangle Park,
North Carolina, and we expect additional growth in both revenues
and earnings from that division.”
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.
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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