Simulations Plus Inc. announced Tuesday preliminary revenues for its fiscal third quarter, showing growth of less than 1 percent.
The Lancaster company, which provides software and consulting services for pharmaceutical research, reported preliminary revenues for the three months ended May 31 of $5.96 million, compared to $5.94 million for the same period in 2015. That represents an increase of 0.4 percent, compared to growth of 12.9 percent during the previous quarter.
The company said the increase, although small, meant the third quarter had the most revenue of any in the company’s history. It plans to release full results for the quarter before the July 15 filing deadline.
Company officials also said the quarter was disappointing, but the fundamental demand for Simlations Plus products remains strong.
“Revenue for our Buffalo division was impacted by an unusual confluence of routine challenges, which usually do not occur all at once,” Dr. Ted Grasela, president of Simulations Plus, said in a statement. “Clinical trial failures remain common, and these issues will impact the timing of consulting projects or cancel them altogether. Typically, these challenges are not in concentrated batches like this.”
Shares of Simulations Plus closed down 11 cents or 1.4 percent to $7.69 on the Nasdaq.