Simulations Plus Reports FY2015 and Fourth Quarter FY2015 Financial Results

Keywords: financial results, gross profit, net revenues
Division: PBPK

Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of software for pharmaceutical discovery and development, today reported its financial results for its 2015 fiscal year (FY15) and fourth quarter (4Q15) ended August 31, 2015.

Results for the 2015 fiscal year (FY15):

  • Revenues were $18.31 million, representing an increase of 59.8% over $11.46 million in FY14
  • Gross profit was up 42.4% to $14.0 million, an increase of $4.17 million from $9.83 million in FY14
  • SG&A expense increased 53.5% to $6.81 million from $4.44 million in FY14
    • As a percent of sales, SG&A decreased to 37.2% from 38.7% in FY14
  • R&D expenditures were $2.50 million in FY15, an increase of 7.5% or $180,000, over $2.32 million in FY14
    • For FY15, $1.17 million was capitalized and $1.33 million was expensed
    • For FY14, $1.37 million was capitalized and $953,000 was expensed
  • Net income was $3.84 million, representing an increase of 27.0% from $3.03 million in FY14
  • Net income from operations increased 31.9%
  • Net income per fully diluted share was $0.226, representing an increase of 22.4% from $0.184 for FY14
  • Cash decreased slightly to $8.55 million, a decrease of $60,000 or 0.01%, from $8.6 million at the end of FY14 after distributing approximately $3.4 million in dividends to shareholders, and using $2.1 million for the Cognigen acquisition

Results for the fourth quarter FY15 (4Q15):

  • Revenues were $3.71 million, representing an increase of 85.8% over $2.0 million in 4Q14
  • Gross profit was up 71.4% to $2.64 million, an increase of $1.1 million from $1.54 million
  • SG&A increased 42.3% to $1.51 million from $1.06 million in 4Q14
  • R&D expenditures were $539,000, an increase of 3.9% from $519,000 in 4Q14
    • For 4Q15, $193,000 was capitalized and $346,000 was expensed
    • For 4Q14, $317,000 was capitalized and $202,000 was expensed
  • Net income was $491,000, representing an increase of 120.2% over $223,000 in 4Q14
  • Earnings per fully diluted share were $0.029, representing an increase of 114.2% over $0.013 in 4Q14

John Kneisel, chief financial officer for Simulations Plus, said: “Fiscal year 2015 was a banner year for Simulations Plus. The successful acquisition of Cognigen brought an additional $5.2 million of consulting revenues. Coupled with another strong year of organic growth of our flagship software products, we have completed another record financial year. 2015 diluted earnings per share were $0.23, a record year for the company. Cash balances of $8.55 million are substantially the same as the prior year, even after distributing $3.4 million in dividends, and using $2.1 million for the Cognigen acquisition.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Our continued growth is a tribute to our marketing and sales staff and our expanded scientific team, whose ongoing efforts to keep us out in front of the technologies in which we specialize have enabled us to hold onto our leadership position in a competitive market. New developments now underway are expected to continue this trend, and we believe our aggressive marketing and sales program and training workshops will continue to bolster our pipeline for continued growth.”

Mr. Woltosz continued, “With the strategic acquisition of our Buffalo division (Cognigen), we believe we are leading the way to the integration of mechanistic physiologically based pharmacokinetics (PBPK) modeling as a critical support tool for clinical pharmacology. This has been an exciting step forward for the combined companies, more than doubling the Simulations Plus workforce and adding synergistic capabilities to our traditional offerings.”

Dr. Ted Grasela, president of Simulations Plus and Cognigen, added, “The creative applications of our software to address challenges in pharmaceutical research and development are especially evident within the discipline of clinical pharmacology. Simulations Plus now has combined strengths in PBPK and in clinical pharmacology, which is a combination that is being encouraged by regulatory agencies worldwide.”

John DiBella, vice president for marketing and sales for Simulations Plus, said: “4Q15 was strong for both software sales and consulting services. Revenue from new licenses comprised 13% of total revenue, renewal rates exceeded 90%, and consulting service revenue comprised 42% of the total revenue. For FY15, 86 new organizations, or new departments at existing organizations, are now utilizing our technology, growing our installed base. Included among these new licenses were orders from major regulatory agencies in the US and Asia, along with companies outside our core pharmaceutical market. We also experienced a robust 91% account, and 95% revenue, renewal rate for the year. The consulting services division, which continues to maintain a robust project pipeline heading into 2016, had revenue that comprised 32% of total revenue in FY15. With our continued focus on education and training, increased marketing efforts, and the upcoming release of the standalone PKPlus™ application along with upgrades to several existing products, we believe we’re in an excellent position to address the needs set forth by regulatory agencies and capitalize on the increased adoption of modeling & simulation technology across industries.”

For complete balance sheets, click here.