Simulations Plus (NASDAQ: SLP) reported Q3 EPS of $0.11, versus $0.08 reported last year. Revenue for the quarter came in at $8 million versus the consensus estimate of $7.51 million.

4QFY19 highlights compared with 4QFY18:

• Revenues increased 20.0% to $8.0 million, an increase of $1.3 million over $6.7 million
• Gross profit was up 25.6% to $5.7 million, an increase of $1.2 million over $4.6 million
• SG&A was $3.2 million, an increase of 42.6%, or $951,000, over $2.2 million
• Total R&D expenditures were $1.0 million, an increase of $89,000, or 9.4%, over $951,000
  • For 4QFY19, $437,000 was capitalized and $603,000 was expensed
  • For 4QFY18, $514,000 was capitalized and $437,000 was expensed
• Income before taxes increased 7.9% to $2.0 million, an increase of $146,000 over $1.8 million
• Net income increased 53.9% to $2.1 million, an increase of $721,000 over $1.3 million
• Earnings per fully diluted share increased $0.03 to $0.11 from $0.08

Shawn O’Connor, chief executive officer of Simulations Plus, said: “We delivered 20% fourth quarter growth, a strong end to a solid year of growth for Simulations Plus as full-year revenue grew 14.5%. This progress is due to targeted investments in our sales and marketing infrastructure, which enabled us to achieve an increased revenue growth rate in excess of historical levels while maintaining excellent gross margins and overall profitability. We enter our fiscal year 2020 with strong market momentum, high backlogs and successful progress across our key objectives to extend our sales and marketing resources and capacity to deliver our strategic consulting services efficiently to our clients.”

John Kneisel, chief financial officer of Simulations Plus, added: “Continued investment in our sales and marketing and supporting teams’ infrastructure and higher R&D spending led to increases in our operating expenses. We believe these investments will help us continue to accelerate our revenue growth. Of special note, in the fourth quarter we benefited from tax deductions from stock compensation expense as employees took advantage of the increased value of their options. Overall, we continue to generate solid profitability and free cash flow, even after paying our regular quarterly dividend.”

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