Simulations Plus Reports Record Second Quarter Fiscal 2021 Financial Results

Division: Simulations Plus

Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemical, and consumer goods industries, today reported financial results for its second quarter of fiscal 2021, ending February 28, 2021.

Q2 Financial highlights compared with the corresponding period last fiscal year:

  • Revenue increased 27% to $13.1 million
  • Gross profit increased 33% to $10.2 million
  • Gross margin was 78%, up from 74%
  • Net income increased 49% to $3.2 million
  • Diluted earnings per share increased 25% to $0.15 per share

YTD Financial highlights compared with the corresponding period last fiscal year:

  • Revenue increased 21% to $23.8 million
  • Gross profit increased 28% to $18.5 million
  • Gross margin was 78%, up from 73%
  • Net income increased 35% to $5.7 million
  • Diluted earnings per share increased 17% to $0.27 per share

Shawn O’Connor, chief executive officer of Simulations Plus, said: “We delivered excellent 27% overall revenue growth, outpacing our annual targets. During the quarter, we also successfully completed our first sponsored conference, the MIDD+ Scientific Conference, a two-day event focused on delivering customized modeling and simulation content specifically for pharmaceutical scientists and their organizations, which was widely attended. We also won several funded collaboration projects and released new versions of GastroPlus® and Monolix Suite™. In summary, this was a productive quarter for Simulations Plus and an encouraging first six months of the fiscal year.”

“While we expect growth to normalize in the second-half of our fiscal year, and are maintaining our full-year growth targets of 15-20%, this first-half performance underscores the strength and diversification of our business model,” continued Mr. O’Connor. “We have built a global organization selling an expanding portfolio of software and services to pharma and regulatory customers, and our growth is increasingly facilitating cross-selling as we leverage our industry leadership. This growth is largely dropping to our bottom line, increasing profitability and bolstering our ability to make additional strategic acquisitions.”

Quarterly Dividend Declared

The Company’s Board of Directors has declared a cash dividend of $0.06 per share of the Company’s common stock payable on May 3, 2021, to shareholders of record as of April 26, 2021. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.

Investor Conference Call

The Company has announced an investor conference call that will be webcast live at 1:15 p.m. PDT/4:15 p.m. EDT on Monday, April 12, 2021. The live webcast/teleconference will be accessible by registering here or by calling 1-201-389-0879. Please join five to ten minutes before the scheduled start time. The call will be simulcast live on the Internet, and the webcast will be available on the Investors page of the Simulations Plus website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call.

Stream the webcast here.

Download Slides

For complete balance sheets, click here.