Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for 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 2017 (3QFY17) and the first nine months of fiscal year 2017 (9moFY17), the period ended May 31, 2017.

3QFY17 highlights compared with 3QFY16:

• Net revenues increased 12.2% to $6.75 million, an increase of $736,000 from $6.01 million
  • An all-time high for any quarter
• Gross profit was up 10.1% to $5.30 million, an increase of $486,000 from $4.82 million
• SG&A was $1.95 million, an increase of 16.3% or $274,000 from $1.68 million
  • Includes approximately $144,000 in one-time charges for the acquisition of DILIsym Services, Inc. that were expensed in the quarter
• R&D expenditures were $598,000, a decrease of $19,000, or 3.2% over $617,000
  • In 3QFY17, $344,000 was capitalized and $254,000 was expensed
  • In 3QFY16, $269,000 was capitalized and $348,000 was expensed
• Income before taxes increased 10.2% to $3.08 million, an increase of $284,000 from $2.80 million
• Net income increased 8.9% to $2.08 million, an increase of $171,000 from $1.91 million
  • Reduced by the one-time charges for the acquisition of DILIsym Services, Inc.
• Diluted earnings per share increased 6.7% to $0.12 from $0.11

9moFY17 highlights compared with 9moFY16:

• Net revenues increased 11.6% to $17.87 million, an increase of $1.86 million from $16.01 million
• Gross profit was up 8.5% to $13.54 million, an increase of $1.06 million from $12.47 million
• SG&A was $5.77 million, an increase of $687,000, or 13.5%, from $5.08 million
  • Includes approximately $261,000 in one-time charges for the acquisition of DILIsym Services, Inc. that were expensed in the first nine months
• R&D expenditures were $1.89 million, a decrease of $84,000, or 4.3% over $1.97 million
  • For 9moFY17, $928,000 was capitalized and $953,000 was expensed
  • For 9moFY16, $814,000 was capitalized and $1.16 million was expensed
• Income before taxes increased 10.1% to $6.84 million, an increase of $628,000 from $6.21 million
• Net income increased 11.4% to $4.64 million, an increase of $476,000 from $4.16 million
  • Reduced by the one-time charges for the acquisition of DILIsym Services, Inc.
• Diluted earnings per share increased 9.9% to $0.27 from $0.24

John Kneisel, chief financial officer of Simulations Plus, said: “The Company continues to produce record financial results and maintains a strong cash position. Consolidated cash as of July 7, 2017, was $6.0 million, after approximately $5.0 million of distributions related to the acquisition of DILIsym Services were made just after the May 31, 2017 quarterly close. In addition, during the quarter ended May 31, 2017, the Company made a dividend distribution of approximately $862,000 on May 15, 2017, and the final payment of $1,000,000 to TSRL was made in April. The strong and consistent profitability has enabled the Board of Directors to identify accretive acquisitions and return cash to shareholders in the form of a cash dividend, and has allowed management to take steps to improve the balance sheet and eliminate long-term royalty agreements.”

John DiBella, vice president for marketing and sales of Simulations Plus, said: “Simulations Plus continues to engage with more companies across a variety of markets, and this is reflected in the strong revenue performance from both software licensing and consulting services seen in both 3QFY17 and 9moFY17. We added 63 new software clients and achieved 23% growth in consulting service revenue through the first nine months of the fiscal year, and the scientists that have recently joined the company are actively contributing to the increasing number of new projects. We have added staff on our marketing and sales team over the past two months and, coupled with increased promotional activities from our new distributor channels in India and Korea, we expect to expand our global reach and end fiscal year 2017 on a positive note.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, concluded: “June marked the 20^th anniversary of Simulations Plus’ 1997 initial public offering of one million shares at $5 per share, with another 2.2 million shares (~69%) held by insiders. Our initial market cap was $16 million. As of last Friday’s close, our market cap was approximately $223 million and the total number of shares after two stock splits, some stock repurchases, and new shares issued in acquisitions and for exercised stock options, is now approximately 17.25 million, with approximately 37% held by insiders. As of June, we became part of the Russell 3000® index, underscoring our progress and attracting new institutional investors. Having completed the exciting acquisition of DILIsym Services, Inc. on June 1, we are almost halfway through our first fiscal quarter that will include the additional revenues and earnings from that division, which achieved just over $3 million in revenues and approximately $720,000 in net earnings during 2016. More importantly, we are now in a position to advance the modeling of drug-induced liver injury through the synergies with our traditional software offerings, and thereby we expect to further expand the market for our software and consulting services.”

For complete balance sheets, click here.