Simulations Plus, Inc. (SLP) has reported a 4.40 percent rise in profit for the quarter ended Feb. 28, 2017. The company has earned $1.20 million, or $0.07 a share in the quarter, compared with $1.15 million, or $0.07 a share for the same period last year.
Revenue during the quarter grew 10.49 percent to $5.71 million from $5.16 million in the previous year period. Gross margin for the quarter contracted 276 basis points over the previous year period to 72.76 percent. Total expenses were 68.54 percent of quarterly revenues, up from 66.77 percent for the same period last year. That has resulted in a contraction of 177 basis points in operating margin to 31.46 percent.
Operating income for the quarter was $1.79 million, compared with $1.72 million in the previous year period.
John Kneisel, chief financial officer of Simulations Plus, said: "We continue our trend of consistent revenue and earnings growth. As of today, cash remains in excess of $8.5 million after our two quarterly dividend distributions totaling over $1.7 million this fiscal year. This quarter, we will make our final payment of $1 million to TSRL as part of the royalty agreement buyout announced in May 2014, which has proven to be a strategically valuable decision for the Company."
Working capital increases sharply
Simulations Plus, Inc. has recorded an increase in the working capital over the last year. It stood at $11.85 million as at Feb. 28, 2017, up 31.99 percent or $2.87 million from $8.98 million on Feb. 29, 2016. Current ratio was at 6.54 as on Feb. 28, 2017, up from 3.54 on Feb. 29, 2016.
Days sales outstanding went up to 69 days for the quarter compared with 36 days for the same period last year.
At the same time, days payable outstanding went up to 9 days for the quarter from 8 for the same period last year.
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