Simulations Plus Reports Third Quarter Fiscal 2021 Financial Results


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LANCASTER, Calif .– (COMMERCIAL THREAD) – Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemical and consumer goods industries, today released its financial results for its third quarter of fiscal 2021, ended May 31, 2021.

Third Quarter Fiscal 2021 Financial Highlights (compared to the corresponding period of the previous financial year):

  • Total revenues increased 4% to $ 12.8 million;

  • Software revenue increased 21% to $ 8.3 million;

  • Services revenue fell 18% to $ 4.5 million;

  • Gross profit increased 7% to $ 10.3 million;

  • The gross margin went from 78% to 81%;

  • Net income increased 29% to $ 3.8 million;

  • Diluted earnings per share increased 13% to $ 0.18 per share.

Financial highlights for the current year (compared to the corresponding period of the previous financial year):

  • Total revenue increased 14% to $ 36.6 million;

  • Software revenue increased 32% to $ 22.3 million;

  • Services revenue fell 6% to $ 14.3 million;

  • Gross profit increased 20% to $ 28.8 million;

  • The gross margin went from 75% to 79%;

  • Net income increased 33% to $ 9.5 million;

  • Diluted earnings per share increased 18% to $ 0.46 per share.

Shawn O’Connor, President and CEO of Simulations Plus, said, “Our software business continued to perform well in the quarter, with revenue up 21% from last year, with updates. Product day and cross-selling initiatives resulting in accelerated growth rates. . However, our overall growth rate has been subdued due to a higher than normal number of late quarter project delays and drug development program cancellations in our services business, which has historically seen hard times. periods of volatility. Despite these delays and cancellations, our service pipeline continued to expand and the backlog increased during the quarter. While these trends are encouraging and support our long-term outlook, delays in service projects will impact growth rates for the remainder of our fiscal year, and we now expect full-year revenue growth. from 5 to 10%.

Mr. O’Connor concluded, “The acceleration in software revenue growth and leverage in our business model continues to support strong and growing profitability, as evidenced by our top nine net income. months of fiscal year 2021 already exceeding net profit for full fiscal year 2020. . With a strong track record, growing industry adoption of artificial intelligence-based simulation software and outsourced services, and accelerating software sales, we believe we are well positioned to succeed and continue to aim for Annual revenue growth rate exceeding 15% over the next several years after fiscal 2021.

Quarterly dividend declared

The Board of Directors of the Company declared a cash dividend of $ 0.06 per common share of the Company, payable on August 2, 2021, to shareholders of record on July 26, 2021. The declaration of any future dividends will be determined by the board of directors quarterly and will depend on earnings, financial condition, capital requirements and other factors.

Investor conference call

The Company will host a conference call on July 12, 2021 at 4:15 p.m. EST. All interested parties are invited to join the call by registering here or by calling 1-201-389-0879. Please register 5-10 minutes before the scheduled start time. The call will be webcast live and will be available on the Investors page of the Simulations Plus website at https://www.simulations-plus.com/investorscorporate-profile/corporate-profile/. A replay of the webcast will be available on the website approximately one hour after the call.

About Simulations Plus, Inc.

Serving customers worldwide for 25 years, Simulations Plus, Inc., is a leading provider of modeling and simulation software and consulting services supporting drug discovery, development research and submissions. regulatory. With our subsidiaries Cognigen, DILIsym Services and Lixoft, we offer solutions that link machine learning, physiological pharmacokinetics, pharmacology / toxicology of quantitative systems and population PK / PD modeling approaches. Our technology is licensed and applied by leading pharmaceutical, biotechnology, chemical, consumer goods companies and regulatory agencies around the world. For more information, visit our website at www.simulations-plus.com. follow us on Twitter | Read our Environmental, social and governance (ESG) report.

Safe Harbor Declaration under the Private Securities Litigation Reform Act 1995 – With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe”, “expect” and “anticipate” mean that these are our best estimates at the time of writing, but that there can be no assurance that the results or expected or anticipated events will actually happen. could differ materially from these statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, the acceptance of new software and improved versions of our existing software by our customers, the general economy of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical personnel, our ability to identify and complete acquisitions on terms favorable to the Company, and a sustainable market. Further information about our risk factors is contained in our quarterly and annual reports and filed with the United States Securities and Exchange Commission.

SIMULATIONS PLUS, INC.
SUMMARY CONSOLIDATED STATEMENTS OF RESULTS AND OVERALL PROFIT
For the three and nine months ended May 31, 2021 and 2020

Three months ended

Nine months ended

(Unaudited)

(Unaudited)

(in thousands, except amounts per common share)

2021

2020

2021

2020

Income

$

12 777

$

12,298

$

36 625

$

32,049

Cost of income

2,471

2,666

7 815

7 975

Gross margin

10,306

9,632

28 810

24,074

Operating Expenses
Selling, general and administrative expenses

5,094

5,023

14 960

12 646

Research and development

670

752

2,771

2,026

Total operating expenses

5 764

5 775

17,731

14 672

Income from operations

4,542

3 857

11,079

9,402

Other income (expenses)
Interest income

37

5

156

27

Interest charges

(22

)

Change in the value of the contingent consideration

(121

)

(81

)

(364

)

(81

)

Income / (Loss) on foreign exchange

33

(1

)

61

1

Total other income (expense), net

(51

)

(77

)

(169

)

(53

)

Profit before provision for income taxes

4,491

3,780

10 910

9 349

Provision for income taxes

(704

)

(844

)

(1,433

)

(2,205

)

Net revenue

$

3 787

$

2 936

$

9,477

$

7,144

Earnings per share
Basic

$

0.19

$

0.17

$

0.47

$

0.40

Diluted

$

0.18

$

0.16

$

0.46

$

0.39

Weighted average common shares outstanding
Basic

20 105

17,735

20,014

17 661

Diluted

20 802

18,427

20,750

18 334

Other comprehensive income, net of tax
Currency conversion adjustments

40

30

36

30

Overall income

$

3 827

$

2 966

$

9,513

$

7 174

SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

(Checked)

(in thousands, except for amounts per share and per share)

May 31st

August 31

ASSETS

2021

2020

Current assets
Cash and cash equivalents

$

58 811

$

49,207

Accounts receivable, net of allowance for doubtful accounts of $ 100 and $ 50

12 962

7 422

Revenue greater than billings

3 883

3 093

Prepaid income taxes

492

970

Prepaid expenses and other current assets

1,602

1,596

short term investments

60 948

66,804

Total current assets

138,698

129,092

Long-term assets
Capitalized software development costs, net of accumulated amortization of $ 14,616 and $ 13,582

7 326

6,087

Property and equipment, net

1,260

438

Operating right of use assets

1,405

927

Intellectual property, net of accumulated depreciation of $ 6,159 and $ 5,087

10 826

11,898

Other intangible assets, net of accumulated amortization of $ 2,054 and $ 1,642

6,596

7,008

Good will

12 921

12 921

other assets

51

51

Total assets

$

179,083

$

168,422

LIABILITIES AND EQUITY
Current liabilities
Accounts payable

$

298

$

351

Payroll and other expenses

2,598

2 251

Taxes payable on income

16

Current portion – contracts payable

3,333

2,000

Billings greater than revenue

127

141

Operating lease liability, current part

426

463

Deferred revenue

542

300

Total current liabilities

7,340

5,506

Long-term liabilities
Net deferred taxes

2,270

2 354

Operating lease liability

980

463

Payments due under contracts payable

3,095

4,064

Total responsibilities

13 685

12,387

Commitments and contingencies
Equity
Preferred shares, par value of $ 0.001 10,000,000 authorized shares, no shares issued and outstanding

Common shares, par value of $ 0.001 and additional paid-up capital – 50,000,000 authorized shares, 20,121,040 and 19,923,277 shares issued and outstanding

131,994

128,541

Retained earnings

33 310

27,436

Cumulative other comprehensive income

94

58

Total equity

165,398

156,035

Total liabilities and equity

$

179,083

$

168,422


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