Simulations Plus Reports Third Quarter FY2015 Financial Results

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

Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for all phases of pharmaceutical discovery and development from the earliest discovery through all phases of clinical trials, today reported financial results for its third quarter of fiscal year 2015 ended May 31, 2015 (3QFY15), and first nine months of fiscal year 2015 (9moFY15), compared to the third quarter (3QFY14) and first nine months of fiscal year 2014 (9moFY14).

3QFY15 highlights compared with 3QFY14:

  • Net revenues increased 58.9% to $5.94 million, an increase of $2.20 million from $3.74 million
  • Gross profit was up 37.4% to $4.83 million, an increase of $1.31 million from $3.51 million
  • SG&A was $1.62 million, an increase of 34.9% or $420,000 from $1.20 million
  • R&D expenditures were $594,000, an increase of $42,000 or 7.6% over $552,000
    • In 3QFY15, $246,000 was capitalized and $348,000 was expensed
    • In 3QFY14, $317,000 was capitalized and $235,000 was expensed
  • Income before taxes increased 35.1% to $2.82 million, an increase of $733,000 from $2.09 million
  • Net income increased 41.7% to $1.85 million, an increase of $545,000 from $1.31 million
  • Diluted earnings per share increased 36.5% to $0.108 from $0.079

9moFY15 highlights compared with 9moFY14:

  • Net revenues increased 54.3% to $14.60 million, an increase of $5.14 million from $9.46 million
  • Gross profit was up 37.0% to $11.36 million, an increase of $3.07 million from $8.29 million
  • SG&A was $5.30 million, an increase of $1.92 million or 57.0% from $3.38 million
  • R&D expenditures were $1.96 million, an increase of $154,000, or 8.5% over $1.8 million
    • For 9moFY15, $976,000 was capitalized and $982,000 was expensed
    • For 9moFY14, $1.05 million was capitalized and $751,000 was expensed
  • Income before taxes increased 18.6% to $5.01 million, an increase of $788,000 from $4.23 million
  • Net income increased 19.6% to $3.35 million, an increase of $549,000 from $2.80 million
  • Diluted earnings per share increased 14.6% to $0.196 from $0.171

Mr. John Kneisel, chief financial officer of Simulations Plus, said: “The Company delivered record results aided by a strong quarter of software sales and consulting revenues. Year-to-date diluted earnings per share reached the 20¢ mark. After distributing just over $800,000 in dividends during 3QFY15, cash on May 31 was a healthy $6.4 million and is currently at $7.8 million.”

Ted Grasela, president of Simulations Plus and its wholly owned subsidiary, Cognigen Corporation, added: “Strong collaborations between our scientists have identified new and innovative ways of using modeling and simulation to bring valuable insights to our clients’ research and development programs. The strategic and synergistic benefits of the Cognigen acquisition are being realized and we look forward to finding even more synergies between the talent and technologies of the two Simulations Plus divisions.”

Walt Woltosz, chairman and CEO of Simulations Plus and Cognigen, added: “We believe the combined Simulations Plus/Cognigen team, which now spans all aspects of drug development from early discovery chemistry through clinical trials and on to generics, provides the most comprehensive offering of powerful software and consulting expertise available to the pharmaceutical industry today. We’re realizing the potential we expected from joining the predominantly preclinical and early clinical capabilities of Simulations Plus with the world-class clinical trial data analysis and reporting expertise of Cognigen, with a number of projects now using the expertise from both teams to meet customers’ needs. Scientists from both divisions are learning about the methods used by each other, which will enable them to communicate the advantages of working with our organization as they go out to scientific meetings and conferences, and to provide training at customer sites. We believe this is just the beginning, as more and more managers in drug development are recognizing the tremendous potential of model-based drug development through best-in-class software and top-notch consulting expertise.”

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