Simulations Plus, Inc. (SLP) has reported a 28.81 percent rise in profit for the year ended Aug. 31, 2016. The company has earned $4.95 million, or $0.29 a share in the year, compared with $3.84 million, or $0.23 a share for the last year.
Revenue during the year grew 9.05 percent to $19.97 million from $18.31 million in the previous year. Gross margin for the year expanded 94 basis points over the previous year to 76.96 percent. Total expenses were 63.79 percent of annual revenues, down from 68.02 percent for the last year. This has led to an improvement of 423 basis points in operating margin to 36.21 percent.
Operating income for the year was $7.23 million, compared with $5.86 million in the previous year.
Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: "Fiscal year 2016 was an excellent year for Simulations Plus, with record revenues, an increase in net income of nearly 29% and EPS up 27.5%. We remain committed to rewarding our shareholders, as evidenced by the recently announced dividend. We have continued to improve our software offerings and released new versions of ADMET Predictor™, DDDPlus™, and KIWI during 2016, and introduced our newest product, PKPlus™, to the market just before the end of the fiscal year. Our approximately $5 million contract with a major research foundation is the first of its kind for us, and we believe future opportunities may exist for similar work in other areas. Our funded projects with the FDA continue to progress well, adding improvements to our flagship GastroPlus™ software that will be available in future releases."
Working capital increases sharply
Simulations Plus, Inc. has recorded an increase in the working capital over the last year. It stood at $10.80 million as at Aug. 31, 2016, up 36.42 percent or $2.88 million from $7.92 million on Aug. 31, 2015. Current ratio was at 6.08 as on Aug. 31, 2016, up from 3.19 on Aug. 31, 2015.
Days sales outstanding went up to 64 days for the year compared with 56 days for the same period last year.
At the same time, days payable outstanding went down to 10 days for the year from 14 for the same period last year.
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