Simulations Plus (SLP) Tops Q2 EPS by 1c, Revenues Beat

Simulations Plus (NASDAQ: SLP) reported Q2 EPS of $0.15, $0.01 better than the analyst estimate of $0.14. Revenue for the quarter came in at $13.1 million versus the consensus estimate of $12.84 million.

Q2 Financial highlights compared with the corresponding period last fiscal year:

• Revenue increased 27% to $13.1 million
• Gross profit increased 33% to $10.2 million
• Gross margin was 78%, up from 74%
• Net income increased 49% to $3.2 million
• Diluted earnings per share increased 25% to $0.15 per share

Shawn O’Connor, chief executive officer of Simulations Plus, said: “We delivered excellent 27% overall revenue growth, outpacing our annual targets. During the quarter, we also successfully completed our first sponsored conference, the MIDD+ Scientific Conference, a two-day event focused on delivering customized modeling and simulation content specifically for pharmaceutical scientists and their organizations, which was widely attended. We also won several funded collaboration projects and released new versions of GastroPlus® and Monolix Suite™. In summary, this was a productive quarter for Simulations Plus and an encouraging first six months of the fiscal year.”

“While we expect growth to normalize in the second-half of our fiscal year, and are maintaining our full-year growth targets of 15-20%, this first-half performance underscores the strength and diversification of our business model,” continued Mr. O’Connor. “We have built a global organization selling an expanding portfolio of software and services to pharma and regulatory customers, and our growth is increasingly facilitating cross-selling as we leverage our industry leadership. This growth is largely dropping to our bottom line, increasing profitability and bolstering our ability to make additional strategic acquisitions.”

For earnings history and earnings-related data on Simulations Plus (SLP) click here.

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