Simulations Plus Inc. reported an increase in net income as well as net revenue for its second fiscal quarter, which the company partly credits to growth in license sales and consulting revenues.
The Lancaster software developer reported net income of $1.15 million (7 cents a share) for the second quarter ended Feb. 29, compared with net income of $970,233 (6 cents) for the same quarter a year ago. Net revenue increased 13 percent to $5.16 million.
“The addition of the recently announced 5-year, $4.7 million contract for data management and consulting services with a major research foundation will add significantly to the revenue growth of our Buffalo division,” Ted Grasela, president of Simulations Plus, said in a statement.
Cash on hand for the company is above $8 million after two dividend distributions, which totaled over $1.7 million. Simulations Plus will use approximately $1.5 million of that cash to make a payment to pharmaceutical company TSRL Inc. of Ann Arbor, Mich. as part of a royalty agreement buyout.
On Thursday, shares closed down 9 cents, or 1 percent, to $8.73 on the Nasdaq.