First quarter revenue of $10.7 million,
reflecting 14% year-over-year growth
Board of Directors announces quarterly
dividend of $0.06 per share
Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of
modeling and simulation solutions for the pharmaceutical,
biotechnology, chemicals, and consumer goods industries, today
reported financial results for its first quarter of fiscal year
2021.
Financial highlights compared with the corresponding period last
fiscal year:
- Revenue increased 14% to $10.7 million
- Gross profit increased 22% to $8.3 million
- Gross margin was 77%, up from 72%
- Net income increased 21% to $2.5 million
- Diluted earnings per share increased 9% to $0.12
Shawn O’Connor, chief executive officer of Simulations Plus,
said: “Our first quarter financial results were in line with our
expectations highlighted by strong, double-digit revenue growth and
increased profitability, despite a challenging comparison to the
first quarter of fiscal 2020 that benefited from unusually strong
results in our DILIsym division. The strategic investments in our
sales and marketing infrastructure, and a growing reliance on
modeling and simulation in the drug development ecosystem continue
to facilitate strong revenue growth, as Simulations Plus bolsters
its already strong position in the marketplace. The acquisition of
Lixoft has meaningfully expanded our addressable market. In
addition, this acquisition has had the desired impact of increasing
the mix of software revenue, helping expand our overall
profitability.”
“We recently signed a large COVID-19-related consulting services
project with a large pharmaceutical client, validating the
resources we devoted to our COVID-19 initiative and demonstrating
the increasing value we play in support of our clients,” added Mr.
O’Connor. “We also signed a new three-year project with a large
private foundation as well as three new projects with a large
non-profit biotechnology institute. Looking ahead, demand for our
consulting services remains strong and next generation releases of
several of our software products that are scheduled for fiscal 2021
reinforce our confidence in delivering another year of organic
growth of 15% to 20% in fiscal 2021.”
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 February
1, 2021, to shareholders of record as of January 25, 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. PST/4:15 p.m. EST on Monday, January
11, 2021. The live webcast/teleconference will be accessible by
here or by calling 1-201-389-0879. Please join 5 to 10 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.
About Simulations Plus, Inc.
Simulations Plus, Inc., is a leading provider of modeling and
simulation software and consulting services supporting drug
discovery, development research, and regulatory submissions. With
our subsidiaries, Cognigen, DILIsym Services, and Lixoft, we offer
solutions which bridge machine learning, physiologically based
pharmacokinetics, quantitative systems pharmacology/toxicology, and
population PK/PD modeling approaches. Our technology is licensed
and applied by major pharmaceutical, biotechnology, chemical,
consumer goods companies and regulatory agencies worldwide. For
more information, visit our website at
www.simulations-plus.com.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995 – With the exception of historical
information, the matters discussed in this press release are
forward-looking statements that involve a number of risks and
uncertainties. Our actual future results could differ significantly
from those statements. Factors that could cause or contribute to
such differences include, but are not limited to: our ability to
maintain our competitive advantages, acceptance of our new software
products as well as improved versions of our existing software by
our customers, the general economics of the pharmaceutical
industry, our ability to finance growth, our ability to continue to
attract and retain highly qualified technical staff, and a
sustainable market. Further information on our risk factors is
contained in our quarterly and annual reports and filed with the
U.S. Securities and Exchange Commission.
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--Tables follow --
SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited) For the three months ended
November 30, (in thousands, except per common share
amounts)
2020
2019
Revenues
$
10,701
$
9,401
Cost of revenues
2,433
2,643
Gross margin
8,268
6,758
Operating expenses Selling, general, and administrative
4,408
3,514
Research and development
809
526
Total operating expenses
5,217
4,040
Income from operations
3,051
2,718
Other income (expense) Interest income
61
11
Change in value of contingent consideration
(121
)
—
Income on currency exchange
5
4
Total other income (expense)
(55
)
15
Income before provision for income taxes
2,996
2,733
Provision for income taxes
(517
)
(675
)
Net income
$
2,479
$
2,058
Earnings per share Basic
$
0.12
$
0.12
Diluted
$
0.12
$
0.11
Weighted-average common shares outstanding Basic
19,930
17,609
Diluted
20,799
18,307
SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited) (Audited) (in
thousands, except share and per share amounts)
November 30,
August 31, ASSETS
2020
2020
Current assets Cash and cash equivalents
$
27,651
$
49,207
Accounts receivable, net of allowance for doubtful accounts of $50
and $50
7,331
7,422
Revenues in excess of billings
2,837
3,093
Prepaid income taxes
560
970
Prepaid expenses and other current assets
1,738
1,596
Short-term investments
91,115
66,804
Total current assets
131,232
129,092
Long-term assets Capitalized computer software development
costs, net of accumulated amortization of $13,906 and $13,582
6,490
6,087
Property and equipment, net
596
438
Operating lease right of use assets
768
927
Intellectual property, net of accumulated amortization of $5,444
and $5,087
11,541
11,898
Other intangible assets, net of accumulated amortization of $1,779
and $1,642
6,871
7,008
Goodwill
12,921
12,921
Other assets
51
51
Total assets
$
170,470
$
168,422
LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities Accounts payable
$
332
$
351
Accrued payroll and other expenses
2,300
2,251
Current portion - contracts payable
2,000
2,000
Billings in excess of revenues
206
141
Operating lease liability, current portion
395
463
Deferred revenue
244
300
Total current liabilities
5,477
5,506
Long-term liabilities Deferred income taxes, net
2,401
2,354
Operating lease liability
376
463
Payments due under contracts payable
4,185
4,064
Total liabilities
12,439
12,387
Commitments and contingencies Shareholders'
equity Preferred stock, $0.001 par value 10,000,000 shares
authorized, no shares issued and outstanding
-
-
Common stock, $0.001 par value and additional paid in capital —
50,000,000 shares authorized, 19,958,760 and 19,923,277 shares
issued and outstanding
129,253
128,541
Retained earnings
28,720
27,436
Accumulated other comprehensive income
58
58
Total shareholders' equity
158,031
156,035
Total liabilities and shareholders' equity
$
170,470
$
168,422
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210111005233/en/
Simulations Plus Investor Relations
Ms. Renee Bouche 661-723-7723 renee@simulations-plus.com
Hayden IR Mr. Cameron Donahue
651-653-1854 slp@haydenir.com
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