Simulations Plus Reports First Quarter FY2019 Financial Results
LANCASTER, Calif.--(BUSINESS WIRE)--Jan 9, 2019--Simulations Plus, Inc. (Nasdaq:SLP), the leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemicals, and consumer goods industries, today reported financial results for its first quarter of fiscal year 2019, the period ended November 30, 2018 (1QFY19).
1QFY19 highlights compared with 1QFY18:Net revenues increased 6.6%, or $467,000, to $7.5 million from $7.1 million Gross profit increased slightly and remained at $5.3 million Gross profit as a percentage of revenues decreased from 75.5% to 70.8% SG&A was $2.7 million, an increase of 12.9%, or $311,000, from $2.4 million SG&A as a percentage of revenues increased to 36.1% from 34.1% R&D expense increased 46.8% or $169,000, to $530,000 from $361,000 Income before taxes decreased $495,000, to $2.0 million from $2.5 million Net income decreased $180,000, or 10.5%, to $1.5 million from $1.7 million Diluted earnings per share decreased $0.01 to $0.09 from $0.10 per share
Shawn O’Connor, chief executive officer of Simulations Plus, said: “Strong first quarter revenue growth in addition to key new business closures after quarter end support our outlook for full year revenue growth of 10-15%. We are investing in sales and marketing initiatives and our consulting service organization’s staff to respond to the opportunities we see in the marketplace. These investments impacted our expenses in this quarter but will position us well in quarters ahead to achieve anticipated profitable growth. Certain expenses lines, such as R&D, will remain higher, but expected revenue growth in coming quarters should move us back towards historical profitability levels as expenses as a percent of revenues are more in-line with historical levels.”
John Kneisel, chief financial officer of Simulations Plus, added: “During the quarter, we completed our implementation of FASB Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), a new guidance on Revenue Recognition. ASC 606 had minimal impact on our current revenue, we expect it may have some impact on the timing of revenue recognition and service revenue margins on certain contracts going forward, but we do not anticipate significant changes to our annual historical service margins due to the minimal number of projects for which the standard changed revenue recognition.”
Quarterly Dividend Declared
The Company’s Board of Directors has declared a cash dividend of $0.06 per share of the Company’s common stock payable on February 1, 2019, to shareholders of record as of January 25, 2019. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.
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 Wednesday, January 9, 2019. The live webcast/teleconference will be accessible by registering here. Please dial in five to ten minutes prior to the scheduled start time. A live, listen-only webcast will also be available by dialing (914) 614-3221, and entering access code 793-421-673. A replay of the webcast will be available at the Investors section of the Simulations Plus website following the call.
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. 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 our new software products as well as 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, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20190109005804/en/
CONTACT: Simulations Plus Investor Relations
Ms. Renee Bouche
Mr. Cameron Donahue
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: TECHNOLOGY SOFTWARE HEALTH PHARMACEUTICAL
SOURCE: Simulations Plus, Inc.
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PUB: 01/09/2019 04:05 PM/DISC: 01/09/2019 04:05 PM