Simulations Plus Reports Record First Quarter FY2021 Financial Results

LANCASTER, Calif.--(BUSINESS WIRE)-- 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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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

 

Contacts

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

 
 

Source: Simulations Plus, Inc.

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