Simulations Plus Reports Record Preliminary Revenues for Second Quarter FY2016

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 the second quarter of its fiscal year 2016, the period ended February 29, 2016 (2QFY16).

Mr. John Kneisel, chief financial officer of Simulations Plus, Inc., stated: “In accordance with our policy to release timely financial information to our shareholders, we are releasing preliminary revenues for 2QFY16. Earnings will not be released until just prior to the filing of our quarterly report on Form 10-Q. We expect to file our 10-Q with the U.S. Securities and Exchange Commission on or before the April 13, 2016 deadline.”

Preliminary results for the quarter:

  • Preliminary revenues for the three months ended February 29, 2016, were $5.04 million, compared to $4.57 million for the same period in 2015. This represents an increase of 10.2%, or $462,000.
  • Preliminary revenues for the six months ended February 29, 2016, were $9.88 million, compared to $8.66 million for the same period in 2015. This represents an increase of 14.1%, or $1.22 million.
  • Approximately 70% of 2QFY16 revenues were from software and software-related training services.
    • Software and software-related services were up approximately 14.5% for 2QFY16 compared to 2QFY15.
  • Approximately 30% of 2QFY16 revenues were from consulting services and analytical studies including collaborations.
    • Lancaster analytical study and collaboration revenues were approximately $145,000 for 2QFY16, a decrease of $113,000 when compared to 2QFY15.
    • Buffalo revenues increased by 10.34%, or $129,000, to $1.37 million from $1.24 million for 2QFY16 compared to 2QFY15.
  • During 2QFY16, the company added 20 new software customers, for a total of 39 for the six months ended February 29, 2016.
  • Cash as of February 29, 2016, was $7.1 million after the Company made a dividend distribution of approximately $851,000 on February 5, 2016.

John DiBella, vice president for marketing and sales of Simulations Plus, said: “This was a productive quarter for us, as we experienced solid sales growth in both software and consulting services. It is important to note that revenue from software renewals was a bit below our historical average due to unexpected employee turnover at several companies. We believe these were isolated events and expect some of this revenue to be recovered in future quarters. Fortunately, we were able to offset this with strong new software license revenue and an increase in consulting work, demonstrating our increasingly diversified business model. With new product releases expected to be available soon, coupled with an aggressive training workshop and conference schedule over the next few months, we hope to educate more scientists and expect our longstanding positive momentum in revenue growth to continue.”