Lancaster software development company Simulations Plus Inc. released preliminary earnings for its fiscal third quarter Monday, and the company said it is predicting record revenue.
Revenue hit $3.1 million in the quarter ended May 31, an increase of 10.5 percent over the same period a year earlier. The company also said it expects its 23rd consecutive profitable quarter, though it did not release net income.
The company, which designs and licenses software used in pharmaceutical drug research, said 11 percent of revenue came from new licenses and 7.5 percent from consulting studies and collaborations.
The company focused during the quarter on the development and implementation of a new software program that simulates molecules used in malaria treatment drugs. Company officials pointed to its launch as key to the quarter’s success.
“New software licenses increased again, due in part to our successful molecule-design project for malaria last year, and our funded consulting contracts and collaborations have progressed smoothly,” said Chairman and Chief Executive Walt Woltosz in a statement.
The company experienced difficulty in its first fiscal quarter, as profits fell 22 percent due to continued restructuring following the 2011 sale of its Words+ subsidiary, which designs communications products for the disabled. However, it bounced back in the second quarter.
Shares gained 9 cents, or more than 2 percent, to close at $4.48 on the Nasdaq.