Eye Catching Stock: Simulations Plus, Inc. (NASDAQ: SLP)

Simulations Plus, Inc. (NASDAQ: SLP) spotted trading 1.54% off 52-week high price. On the other end, the stock has been noted 109.96% away from the low price over the last 52-weeks. The stock changed 11.91% to recent value of $54.59. The stock transacted 248793 shares during most recent day however it has an average volume of 221.77K shares.

Simulations Plus, Inc. (SLP) recently stated financial results for its third quarter of fiscal year 2020 (3QFY20) and the first nine months of fiscal year 2020 (9moFY20), the period ended May 31, 2020.

9moFY20 highlights contrast with 9moFY19:

  • Net revenues increased 23.5% to $32.0M, a raise of $6.1M over $25.9M
  • Gross profit was up 25.3% to $24.1M, a raise of $4.9M over $19.2M
  • SG&A was $12.6M, a raise of $4.0M, or 46.8%, over $8.6M
  • SG&A as a percentage of revenues increased to 39.5% from 33.2%, inclusive of $1.4M in one-time transaction costs related to the Lixoft acquisition
  • Total R&D expenditures were $3.8M, a raise of $500,000, or 15.4% over $3.3M
    • For 9moFY20, $1.7M was capitalized and $2.0M was expensed
    • For 9moFY19, $1.4M was capitalized and $1.9M was expensed
  • Income before taxes increased 9.1% to $9.4M, a raise of $779.000 over $8.6M
  • Net income increased 9.5% to $7.1M, a raise of $620,000 over $6.5M
  • Diluted earnings per share increased 7.6% to $0.39 from $0.36. One-time transaction costs related to the Lixoft acquisition of $1.4M (approx. $1.1M net of tax) effected a $0.06 decrease in 9moFY20 diluted earnings per share

Shawn O’Connor, chief executive officer of Simulations Plus, stated: “Keeping with historical seasonality trends, the third quarter was again a strong quarter with revenue increasing 24% year-over-year to $12.3M, demonstrating the important progress we have made to accelerate growth. A solid base of recurring revenue and a large backlog of project-based service business have minimized the impact from current economic conditions resulting from the effects of the COVID-19 pandemic. While certain new consumer software license and service projects were delayed in recent months, we continue to believe opportunities have been delayed, but not lost. Our backlog remains healthy, and we are encouraged by the pickup of new software license closures and consulting contracts at the end of the quarter. We expect double-digit, year-over-year revenue growth in the fiscal fourth quarter, despite the impact of seasonality on a sequential basis.”

“The integration of Lixoft is going well and initial feedback from the marketplace has been positive as consumers acknowledge the strengthening of our offerings with the Monolix Suite,” Mr. O’Connor continued. “We are collaborating across the enterprise to fully integrate our sales and marketing efforts and leverage our existing infrastructure to extract maximum synergies and present a unified approach to our consumers.”

John Kneisel, chief financial officer of Simulations Plus, added: “The dependable cash flow generation of our business was further improved with the immediately accretive acquisition of Lixoft in the third quarter. Following this cash investment, our financial position remains strong with a solid balance sheet that includes $7M in unrestricted cash and no outstanding borrowed debt at the end of the third quarter and access to additional capital via a new, undrawn $3.5M line of credit. Through a steady approach to growth and the prudent allocation of capital, we are able to maintain the economic engine of our business, invest for future growth, and return capital to shareholders in the form of quarterly cash dividends.”

Its earnings per share (EPS) expected to touch remained 14.20% for this year while earning per share for the next 5-years is expected to reach at 15.00%. SLP has a gross margin of 73.70% and an operating margin of 29.90% while its profit margin remained 24.30% for the last 12 months. The price moved ahead of 19.29% from the mean of 20 days, 32.26% from mean of 50 days SMA and performed 52.80% from mean of 200 days price. Company’s performance for the week was 9.77%, 44.80% for month and YTD performance remained 87.79%.

 

Leave a Reply

Your email address will not be published. Required fields are marked *