Simulations Plus Inc. reported lower net income in the fiscal fourth quarter, blaming one-time costs associated with an acquisition.
The Lancaster pharmaceutical software company reported net income of $250,000 (1.3 cents a share) for the quarter ending Aug. 31, compared with $350,000 (1.5 cents) in the same period a year earlier. Revenue increased 27 percent to $2 million.
In September, Simulations Plus bought Cognigen Corp., a Buffalo, N.Y. company that helps drug makers seek regulatory approval for their products. The deal was valued at $7 million. Cognigen will operate as a subsidiary under its own name.
Cogninen President Ted Grasela will keep his title and continue to operate the New York company.
“This is an exciting step forward for both Simulations Plus and Cognigen,” Simulations Plus Chief Executive Walt Woltosz said in a prepared statement.
Shares closed down 22 cents or 3.4 percent to $6.26 on the Nasdaq.