Simulations Plus Reports Preliminary Revenues for Fourth Quarter and Fiscal Year 2017
October 03 2017 - 8:30AM
Business Wire
Company Reports Record Fourth-Quarter and
Full-Year Revenues
Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of
simulation and modeling software and consulting services for
pharmaceutical discovery and development from the earliest
discovery through all phases of clinical trials, today released
preliminary revenues for its fiscal fourth quarter (4QFY17) and
full fiscal year 2017 (FY2017) ended August 31, 2017.
Mr. John R. Kneisel, chief financial officer of Simulations
Plus, stated: “This quarter represents the first quarter where
we’re reporting preliminary consolidated annual and fourth quarter
revenues that include three divisions – Simulations Plus
(Lancaster, CA), Cognigen (Buffalo, NY), and the newly acquired
DILIsym Services, Inc. (Research Triangle Park, NC), which
acquisition was completed on June 1, 2017. Net income will not be
released until we complete 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, 2017, deadline.”
Preliminary results for the fiscal year:
- Consolidated software and
software-related services increased 7.7% to a record $14.9 million
for FY2017 compared to $13.8 million in FY2016
- Consolidated consulting revenues
increased 50.5%, or $3.1 million, to $9.2 million compared to $6.1
million in FY2016
- Total preliminary consolidated revenues
for FY2017 increased 20.9%, or $4.2 million, to a record $24.1
million, compared to $20.0 million for FY2016
- For FY2017, approximately 61.7% of
revenues came from software licenses and software-related services
and approximately 38.3% of revenues came from consulting studies
and collaborations
- As of August 31, 2017, consolidated
cash was $6.2 million after significant cash distributions made
this fiscal year, which included: the final $1 million payment to
TSRL in April; approximately $5 million of DILIsym Services, Inc.
acquisition-related payments disbursed subsequent to May 31, 2017;
and a distribution of approximately $863,000 in cash dividends to
shareholders on August 4, 2017 (for a total of $3.45 million in
dividends distributed to shareholders during FY2017). Cash as of
today is $7.2 million.
Preliminary results for the quarter:
- Consolidated software and
software-related services increased 12.2% to a record $2.9 million
for 4QFY17 compared to $2.6 million in 4QFY16; DILIsym Services,
Inc., accounted for approximately $200,000 of software-related
revenues in this quarter
- Consolidated 4QFY17 consulting revenues
increased 144.9%, or $2.0 million, to $3.4 million from $1.4
million in 4QFY16; DILIsym Services, Inc., accounted for $1.0
million of consulting revenues in this quarter. Buffalo Division
(Cognigen) revenues were up over $800,000 over 4QFY16 and up
$400,000 over 3QFY17
- Total preliminary revenues for 4QFY17
increased 58.3% to $6.3 million, a new fourth quarter record,
compared to $4.0 million reported for 4QFY16
- For the quarter, approximately 46.2% of
revenues came from software and software-related services, and
approximately 53.8% of revenues came from consulting studies and
collaborations
- During 4QFY17, the company added 25 new
software customers and a total of 88 for FY2017
- Annual recurring customer renewal rate
was 88% (total accounts) and 94% based on revenue.
Walt Woltosz, chairman and chief executive officer of
Simulations Plus, added: “These results represent solid evidence of
the continued strong financial performance of Simulations Plus in
all three divisions. Our scientific and administrative staffs
continue to perform as the elite professionals they are, providing
outstanding shareholder value by the excellent products, services,
and globally famous support they provide to our customers. I could
not be more proud of our teams in every division. The addition of
DILIsym Services, Inc., to the Simulations Plus family took place
at the beginning of our fourth fiscal quarter, and we are already
realizing beneficial synergies in products and services with our
new team members, as we have done for the past three years with our
Cognigen teammates. Lancaster and Buffalo have worked together for
three years in applying physiologically based pharmacokinetics
(PBPK) to address issues in clinical pharmacology, and Cognigen
scientists are now well-trained in applying GastroPlus™ PBPK models
in their consulting work. In addition, just since June 1, we are
already testing a software methodology for linking our GastroPlus
physiologically based pharmacokinetics (PBPK) outputs to the
DILIsym® simulation for drug-induced liver injury. These three
divisions complement each other beautifully, and we expect to see
further growth as we work together to provide solutions to our
pharmaceutical, food, cosmetics, and chemical industry
customers.”
John Kneisel concluded: “Our policy has been to release
preliminary consolidated revenues every quarter; however, as stated
in our June 15, 2017, press release, this is the last quarter where
we will release preliminary revenues at the end of the quarter. The
growth of the Company and the shifting of revenue from primarily
software (with its straightforward revenue recognition) to an
increased percentage of consulting projects across the three
divisions has made the process of compiling revenues more
complicated. Beginning with our 2018 fiscal year, our policy will
be to release our final and complete revenues in conjunction with
the filing of our quarterly and annual earnings releases and/or SEC
filings-- Forms 10-Q and 10-K.”
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 and quantitative systems pharmacology models
for drug-induced liver injury and nonalcoholic fatty liver disease.
The company is a global leader focused on improving the ways
scientists use knowledge and data to predict the properties and
outcomes of pharmaceutical, biotechnology, and chemical agents. Our
software is licensed to and used in the conduct of drug research by
major pharmaceutical, biotechnology, chemical, and consumer goods
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 properly manage the new combined 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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