Simulations Plus Inc. had a strong start to fiscal 2018, with record-breaking revenue and an earnings jump of more than 20 percent compared to the first quarter of last year.
The Lancaster technology firm, which builds drug modeling software for the pharmaceutical industry, reported unaudited profits of $1.8 million, or 10 cents a share, for the fiscal first quarter ended Nov. 30. Simulations Plus had earnings of 8 cents a share for the same quarter last year.
The company’s earnings were slightly higher than predicted by the sole analyst who covers Simulations Plus, Howard Halpern at Taglich Bros. in New York, who had expected earnings of 9 cents a share, according to Thomson Financial.
Simulations Plus generated $7.1 million in revenue during the first quarter, a new high for the firm. The company reported revenue of $5.4 million for the same quarter a year ago.
Halpern had predicted revenue of around $6.6 million in the quarter.
The company pegged its gains to its recent acquisition of Dilisym Services Inc., which produces software for modeling drug-induced liver injury. Simulations Plus completed the purchase in June.
“Revenue growth in our core divisions in Lancaster and Buffalo coupled with the new revenues and profits from Dilisym services … (resulted) in a strong start to the new fiscal year,” John Kneisel, chief financial officer of Simulations Plus, said in a statement.
Simulations Plus (SLP) reported earnings after trading ended Tuesday. Shares jumped Tuesday 35 cents, or about 2 percent, to close at $15.85 on the Nasdaq.