Simulations Plus (NASDAQ: SLP) reported Q4 EPS of $0.11, $0.01 better than the analyst estimate of $0.10. Revenue for the quarter came in at $9.4 million versus the consensus estimate of $8.61 million.

1QFY20 highlights compared with 1QFY19:

• Net revenues increased 24.8%, or $1.9 million, to $9.4 million from $7.5 million
• Gross profit increased 26.7%, or $1.4 million, to $6.8 million from $5.3 million
• Gross profit as a percentage of revenues increased to 71.9% from 70.8%
• SG&A was $3.5 million, an increase of 29.2%, or $794,000, from $2.7 million
• SG&A as a percentage of revenues increased to 37.4% from 36.1%
• R&D expense decreased slightly to $526,000 from $530,000
• Income before taxes increased to $2.7 million from $2.0 million
• Net income increased $522,000, or 34.0%, to $2.1 million from $1.5 million
• Diluted earnings per share increased $0.02 to $0.11 from $0.09 per share

Shawn O’Connor, chief executive officer of Simulations Plus, said: “This was a very strong start to our fiscal year thereby demonstrating the effects of our investments in sales and marketing and scientific consulting resources to accelerate our revenue growth above historical levels. The quarter also benefitted from our consulting team’s response to accelerated project delivery requests from two clients in support of critical development and regulatory strategies. This underscores the value we provide our customers and the dedication of our scientists to support our client’s success. We continue to expect full-year growth in the 15-20% range.”

John Kneisel, chief financial officer of Simulations Plus, added: “Simulations Plus continues to generate strong revenue growth which produced an increase in fully diluted EPS of $0.02. Net cash provided by operations remains solid at $2.6 million this quarter. During the quarter, we adopted the provisions of ASC 842, Leases. Under the standard we have recognized operating leases as Right-of-Use assets, with a corresponding lease liability. As of the beginning of this fiscal year, we increased assets and liabilities by approximately $903,000 which will be taken to expense over the life of the respective leases. The effect on operating income was not significant as the amount expensed approximates the rental commitments; moreover, we do not anticipate any material effect on operating earnings going forward.”

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