Simulations Plus Reports Preliminary Revenues for Fourth Quarter and Fiscal Year 2015

Keywords: preliminary revenues
Division: PBPK

Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of consulting services and software for pharmaceutical discovery and development, today released preliminary revenues for its fiscal fourth quarter (4QFY15) and full-year 2015 (FY2015) ended August 31, 2015.

Mr. John R Kneisel, chief financial officer of Simulations Plus, stated: “We have just completed our first year of operations following our September 2014 acquisition of Cognigen Corporation, an acquisition which delivered the expected benefits such as expanded addressable market, increased scale, and greater profitability. In accordance with our policy to release timely financial information to our shareholders, we are releasing preliminary consolidated revenues for 4QFY15. Net income will not be known until income taxes have been determined and our auditors review 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 30, 2015 deadline.”

Preliminary results for the quarter:

  • Preliminary revenues for 4QFY15 increased 82.9% to $3.65 million, compared to $2.0 million reported for Simulations Plus for 4QFY14.
    • Consolidated software and software-related services increased 14.9% to a record $2.18 million for 4QFY15 compared to 4QFY14.
    • Cognigen Corporation 4QFY15 revenues were $1.34 million compared to $1.40 million in the third quarter of this fiscal year.
  • For the quarter, approximately 59.7% of revenues came from software and software-related services, and approximately 40.3% of revenues came from consulting studies and collaborations.

Preliminary results for the fiscal year:

  • Preliminary revenues for FY2015 were $18.26 million, compared to $11.46 million for FY2014; this represents an increase of 59.3%, or $6.80 million. $5.15 million of the 2015 revenue increase is attributed to the Cognigen Corporation acquisition.
  • For FY2015, approximately 68.5% of revenues came from software licenses and software-related services, and approximately 31.5% of revenues came from consulting studies and collaborations.
  • Cash as of September 8, 2015, was $8.4 million, after a dividend distribution of approximately $847,000 was made on July 30, 2015.

John DiBella, vice president for marketing and sales of Simulations Plus, said: “We continue to ride a wave of positive sales momentum on all fronts, as we saw strong gains in revenue from both software licenses and consulting services. It is important to note when comparing 4th quarters, in 4QFY14 we instituted changes to how multiyear license revenue was recognized and, as a result, accrued a positive adjustment to revenue from previous quarters of $0.19 million. Eliminating this one-time correction, revenue for software and software-related services would have increased 26.7%. The recent news regarding the second U.S. FDA grant award in as many years further confirms our position as the premier provider of modeling and simulation software and services for the pharmaceutical industry. This, coupled with several new product releases expected this fall, positions us nicely as we enter FY16.”

Ted Grasela, president of Simulations Plus, added: “I’m encouraged by the strong preliminary results we are reporting today. We continue to identify ways in which we can improve the profitability of the company and work together on solving some of the vexing industry challenges of pharmaceutical research and development. I’m looking forward to fiscal year 2016 and working with the Simulations Plus and Cognigen teams to continue the excellent history of growth for Simulations Plus.”