Simulations Plus Increases Net Income 49 Percent

Drug modeling software company Simulations Plus Inc. beat analyst estimates for its second fiscal quarter, with net income increasing a whopping 49 percent.The Lancaster-based company, which makes a platform used by the pharmaceutical industry for drug research and development, reported an adjusted net income of $3.2 million (15 cents a share) for the quarter ended Feb. 28, compared to adjusted net income of $2.15 million (12 cents) for the same quarter a year ago. Revenue increased 27 percent year over year to $13.1 million.Analysts had expected earnings of 14 cents a share on revenue of $12.9 million, according to Zacks Consensus Estimate.“While we expect growth to normalize in the second half of our fiscal year, and are maintaining our full-year growth targets of 15 to 20 percent, this first-half performance underscores the strength and diversification of our business model,” Shawn O’Connor, chief executive at Simulations Plus, said during a conference call on Monday.Added O’Connor: “We have built a global organization selling an expanding portfolio of software and services to pharma and regulatory customers, and our growth is increasingly facilitating cross-selling as we leverage our industry leadership. This growth is largely dropping to our bottom line, increasing profitability and bolstering our ability to make additional strategic acquisitions.”The company announced earnings on Monday. Shares of Simulations Plus (SLP) closed Wednesday up 92 cents, or 1.5 percent, to $61.87 on the Nasdaq.