Simulations Plus, Inc. (NASDAQ:SLP) reported stronger-than-expected earnings for its second quarter.
The company, based in Lancaster, Calif. announced net revenues increased 15%, or $1.1 million, to $8.5 million from $7.4 million
Gross profit was $6.3 million, up $1.0 million, or 19.5%, from $5.2 million. Net income decreased $1.4 million, or 39.6%, to $2.1 million from $3.5 million, due mainly to the Company recording in the prior-year (2QFY18) a $1.5 million one-time adjustment to deferred taxes based on the Tax Cuts and Jobs Act passed in the prior fiscal year.
Diluted earnings per share decreased $0.07, to $0.12 from $0.19 per share.
CEO Shawn O’Connor said: "As expected, our revenue growth accelerated in the second quarter, in line with historical seasonality and benefiting from double-digit growth in consulting services.
"This progress reinforced our confidence in our full-year revenue growth outlook of 10-15%, and this does not yet benefit from the ongoing investments in sales and marketing initiatives designed to drive future growth. In particular, we are adding to our consulting services team in an effort to address the growing demand and expanding opportunities we see in the marketplace."
Moreover, SLP’s Board of Directors has declared a cash dividend of $0.06 per share of the Company’s common stock payable on May 1, to shareholders of record as of April 24.
Simulations Plus, develops drug discovery and development software as well as a leading provider of both pre-clinical and clinical pharmacometric consulting services for regulatory submissions and quantitative systems pharmacology models for drug-induced liver injury and non-alcoholic fatty liver disease
Shares bounced $1.26, or 6.3%, to $21.22
