Simulations Plus Reports Record Preliminary Revenues for Second Quarter FY2017

Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of consulting services and software for pharmaceutical discovery and development, today released preliminary revenues for the second quarter of its fiscal year 2017, the period ended February 28, 2017 (2QFY17).

Mr. John Kneisel, chief financial officer of Simulations Plus, Inc., stated: “In accordance with our policy to release timely financial information to our shareholders, we are releasing preliminary revenues for 2QFY17. Earnings will not be released until just prior to the filing of our quarterly report on Form 10-Q. We expect to file our 10-Q with the U.S. Securities and Exchange Commission on or before the April 10, 2017, deadline.”

Preliminary results for the quarter:

• Preliminary revenues for the three months ended February 28, 2017, were $5.64 million, compared to $5.16 million for the same period in 2016. This represents an increase of 9.3%, or $480,000.
• Preliminary revenues for the six months ended February 28, 2017, were $11.06 million, compared to $10.00 million for the same period in 2016. This represents an increase of 10.6%, or $1.06 million.
• Approximately 68% of 2QFY17 revenues were from software and software-related training services.
  • Software and software-related services were up approximately 8.0% for 2QFY17 compared to 2QFY16.
• Approximately 32% of 2QFY17 revenues were from consulting services and analytical studies including collaborations.
  • Lancaster analytical study and collaboration revenues were approximately $260,000 for 2QFY17, an increase of $110,000 when compared to 2QFY16.
  • Buffalo revenues increased by 6.1%, or $90,000, to $1.57 million from $1.48 million for 2QFY17 compared to 2QFY16.
• During 2QFY17, the company added 20 new software customers, for a total of 43 for the six months ended February 28, 2017.
• Cash as of February 28, 2017, was $7.4 million after the Company made a dividend distribution of approximately $862,000 on February 6, 2017.

John DiBella, vice president for marketing and sales of Simulations Plus, said: “We achieved strong revenue growth in the first half of our fiscal year, as we engaged with more clients than ever, continued expanding our software license base into new markets, and realized recurring renewal rates of 96% for software fees. As we shift our focus to the second half of the year, our teams will be working hard on the full pipeline of consulting service projects and new releases for several products, including a major one for our flagship program, GastroPlus™. We will also continue to recruit prospective employees to help execute our strategic growth plans. Finally, our aggressive global training workshop and conference schedule will assist us with our goal of educating more scientists and promoting our modeling & simulation solutions to different audiences, and we anticipate these activities will help our longstanding positive momentum in revenue growth to continue.”