Consolidated net earnings up 23.1% on 12%
revenue increase
Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of
simulation and modeling software and consulting services for all
stages of pharmaceutical discovery and development from the
earliest discovery through all phases of clinical trials, today
reported financial results for its first quarter of fiscal year
2017, the period ended November 30, 2016 (1QFY17).
1QFY17 highlights compared with 1QFY16:
- Net revenues increased 12.0%, or
$579,000, to a new first quarter record $5.42 million vs. $4.84
million
- Gross profit increased 8.7% to $4.08
million from $3.76 million
- SG&A was $1.86 million, an increase
of $187,000 or 11.2%, from $1.68 million
- SG&A as a percentage of revenues
decreased slightly from 34.6% to 34.4%
- Income before taxes increased $250,000
or 14.6%, to $1.97 million from $1.72 million
- Net income increased $255,000 or 23.1%,
to $1.36 million from $1.11 million
- Diluted earnings per share increased
22% or $0.014, to $0.078 from $0.064 per share
John Kneisel, chief financial officer of Simulations Plus, said:
“Fiscal year 2017 is starting out with good first quarter profits,
bolstered by strong consulting revenues. Our ability to effectively
leverage our operations is enabling us to grow our bottom line at
nearly twice the pace we are growing revenues, driving a 22%
improvement in earnings per share.”
Ted Grasela, Company president, added: “It is rewarding to see
the increase in business from both existing and new clients. This
represents recognition and appreciation for the quality and value
of our technology and consulting services. We are aggressively
looking to expand our staff to meet the growing demand for modeling
and simulation consulting support and are recruiting additional
software engineers to continue development of our PBPK modeling and
pharmacometrics communication platforms in order to streamline
model-based drug development activities and increase license
sales.
John DiBella, vice president for marketing and sales of
Simulations Plus, said: “The positive trend of solid software sales
and increasing requests for our consulting services continued in
1QFY17. Software license revenue increased 7.2%, driven by robust
renewal rates and 28 new organizations, or new departments at
existing organizations, now utilizing our technology. Revenue from
consulting services increased 21.1%, as we applied our technology
and expertise in a wide range of projects and engaged with 13 new
clients. Education remains a key focus for us in 2017, as we have
scheduled workshops for the U.S., Europe, and Asia to allow us to
train more scientists on the applications of our tools. This,
coupled with new releases of all major software products expected
in FY17, gives us confidence in our ability to continue expanding
our client base.”
Walt Woltosz, chairman and chief executive officer of
Simulations Plus, concluded: “Fiscal year 2017 is off to a very
good start with this record first quarter. Both divisions delivered
strong performance in this first quarter, and our Buffalo division
is now generating significant new revenues from our five-year,
nearly $5 million consulting contract with a major research
foundation in addition to our typical consulting work in that
division. Software sales continue to grow as the pharmaceutical
industry continues to adopt simulation and modeling technology to
improve productivity and reduce wasted R&D efforts on compounds
that would have failed. We expect this trend to continue in 2017,
and Simulations Plus is increasingly well-positioned to benefit
from this trend.”
Investor Conference Call
The Company has announced an investor conference call that will
be webcast live at 1:15 p.m. PST/4:15 p.m. EST on Monday, January
9, 2017. All interested parties may join the call by registering
here. 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 (415) 655-0052, and enter access code 187-204-517. A
replay will be available on the Simulations Plus website following
the call.
About Simulations Plus, Inc.
Simulations Plus, Inc., is a premier developer of drug discovery
and development software licensed to and used in the conduct of
drug research by major pharmaceutical and biotechnology companies
and regulatory agencies worldwide. The Company is also a leading
provider of both preclinical and clinical pharmacometric consulting
services for regulatory submissions and 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 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) November 30, August
31, ASSETS
2016
2016
Current assets Cash and cash equivalents $ 8,844,664 $
8,030,284 Accounts receivable, net of allowance for doubtful
accounts of $0 3,417,479 3,009,517 Revenues in excess of billings
1,035,078 694,131 Prepaid income taxes - 555,486 Prepaid expenses
and other current assets
314,707
410,811 Total current assets
13,611,928 12,700,229 Long-term
assets
Capitalized computer software development
costs, net of accumulated amortization of $8,897,704 and
$8,613,487
3,963,739 4,013,127 Property and equipment, net 271,997 256,381
Intellectual property, net of accumulated amortization of
$1,560,625 and $1,408,750 4,514,375 4,666,250 Other intangible
assets net of accumulated amortization of $331,875 and $295,000
1,318,125 1,355,000 Goodwill 4,789,248 4,789,248 Other assets
34,082 34,082 Total
assets $ 28,503,494
$ 27,814,317
LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities Accounts payable $ 211,800 $ 108,111 Accrued
payroll and other expenses 563,377 481,610 Accrued bonuses to
officers 15,250 121,000 Income taxes payable 100,942 - Other
current liabilities 3,309 8,274 Current portion - Contracts payable
1,000,000 1,000,000 Billings in excess of revenues 196,799 230,100
Deferred revenue
152,290
176,422 Total current liabilities
2,243,767 2,125,517
Long-term liabilities Deferred income taxes
2,905,061 2,956,206 Total
liabilities
$ 5,148,828 $
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 7,231 7,227
Additional paid-in capital 11,497,832 11,376,007 Retained earnings
11,849,603 11,349,360 Total
shareholders' equity
$ 23,354,666
$ 22,732,594
Total liabilities and shareholders' equity
$ 28,503,494
$ 27,814,317
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
For the three months ended November
30,
(Unaudited)
2016
2015
Net Revenues $ 5,417,934 $ 4,838,620
Cost of
revenues 1,335,983
1,083,347 Gross margin
4,081,951 3,755,273
Operating expenses Selling, general, and administrative
1,863,555 1,676,433 Research and development
290,300 351,307
Total operating expenses
2,153,855
2,027,740 Income from
operations 1,928,096
1,727,533 Other income (expense)
Interest income 4,456 4,467 Gain(loss) on currency exchange
34,928 (14,895
)
Total other income (expense)
39,384 (10,428
)
Income from operations before provision
for income taxes
1,967,480 1,717,105 Provision for income taxes
(605,915 ) (610,632
) Net Income $
1,361,565 $
1,106,473 Earnings per
share Basic
$ 0.08 $ 0.07 Diluted
$ 0.08 $ 0.06
Weighted-average common shares outstanding Basic
17,226,192 16,966,089 Diluted
17,409,134
17,255,068
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version on businesswire.com: http://www.businesswire.com/news/home/20170109006345/en/
Simulations Plus Investor
RelationsMs. Renee Bouche,
661-723-7723renee@simulations-plus.comorHayden IRMr. Cameron Donahue,
651-653-1854cameron@haydenir.com
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