Simulations Plus Reports FY2016 and Fourth Quarter FY2016 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 2016 fiscal year (FY16) and fourth quarter (4Q16) ended August 31, 2016.

Results for the 2016 fiscal year (FY16):

  • Revenues were $19.97 million, representing an increase of 9.1% over $18.31 million in FY15
  • Gross profit was up 10.4% to $15.4 million, an increase of $1.45 million from $13.9 million in FY15
  • SG&A expense decreased 0.64% to $6.69 million from $6.74 million in FY15
    • As a percent of sales, SG&A decreased to 33.5% from 36.8% in FY15
  • R&D expenditures were $2.64 million in FY16, an increase of 5.8%, or $145,000 over $2.50 million in FY15
    • For FY16, $1.20 million was capitalized and $1.45 million was expensed
    • For FY15, $1.17 million was capitalized and $1.33 million was expensed
  • Net income was $4.95 million, representing an increase of 28.8% from $3.84 million in FY15
  • Net income from operations increased 23.5%
  • Net income per fully diluted share was $0.288 (29¢), representing an increase of 27.5% from $0.226 (23¢) for FY15
  • Cash was $8.03 million, a decrease of $521,000, or 6.1%, from $8.55 million at the end of FY15.

Results for the fourth quarter FY16 (4Q16):

  • Revenues were $3.96 million, representing an increase of 6.6% over $3.71 million in 4Q15
  • Gross profit was up 10.3% to $2.90 million, an increase of $270,000 from $2.63 million in 4Q15
  • SG&A increased 7.4% to $1.61 million from $1.50 million in 4Q15
  • R&D expenditures were $662,000, an increase of 22.6% from $540,000 in 4Q15
    • For 4Q16, $378,000 was capitalized and $284,000 was expensed
    • For 4Q15, $193,000 was capitalized and $347,000 was expensed
  • Net income was $789,000, representing an increase of 60.6% over $491,000 in 4Q15
  • Earnings per fully diluted share were $0.046 (5¢), representing an increase of 58.9% over $0.029 (3¢) in 4Q15

Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: “Fiscal year 2016 was an excellent year for Simulations Plus, with record revenues, an increase in net income of nearly 29% and EPS up 27.5%. We remain committed to rewarding our shareholders, as evidenced by the recently announced dividend. We have continued to improve our software offerings and released new versions of ADMET Predictor™, DDDPlus™, and KIWI during 2016, and introduced our newest product, PKPlus™, to the market just before the end of the fiscal year. Our approximately $5 million contract with a major research foundation is the first of its kind for us, and we believe future opportunities may exist for similar work in other areas. Our funded projects with the FDA continue to progress well, adding improvements to our flagship GastroPlus™ software that will be available in future releases.”

Dr. Ted Grasela, president of Simulations Plus and Cognigen, added: “We continue to find new ways of combining the expertise in Buffalo with Lancaster and solve interesting and important challenges for our clients. Our scientists are involved in industry-wide initiatives, such as the SimInhale consortium to ensure that we can incorporate emerging science into our software products and consulting services.”

John DiBella, vice president for marketing and sales for Simulations Plus, said: “This was an exciting year for us, as we made positive strides with the diversification of our user base and the consulting projects on which we worked. For FY16, software license revenue increased 11%, with 75 new organizations, or new departments at existing organizations, now utilizing our technology, growing our installed base. We realized significant growth in software licensing from contract research organizations and companies outside our core pharmaceutical market, which highlights the utility of our tools for various research activities. We also experienced a strong 88% account, and 94% revenue, renewal rate for the year. The consulting services division, which worked with more than 35 companies and continues to maintain a robust project pipeline heading into 2017, had revenue that comprised 31% of total revenue in FY16. With our continued focus on education and training, increased marketing efforts, and the upcoming releases of GastroPlus™ 9.5 and other programs, we believe we are in an excellent position to address the needs set forth by regulatory agencies and capitalize on the increased adoption of modeling and simulation technology across industries.”

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