Simulations Plus, Inc. (NASDAQ: SLP) stock rose over 6% in the pre-market session of July 11th, 2019 (Source: Google finance) after the company in the third quarter of FY 19 has reported the 16.2% growth in the net revenue to $9.9 million. Net income increased 20.1% to $2.9 million in the third quarter. Income from operations for the third quarter of FY19 was $3.9 million, up 13.6% compared to $3.4 million in the year-ago quarter. This was primarily the result of revenue growth outpacing the increase in costs and with slightly higher gross margins. Consolidated cash as of May 31, 2019, was $10.3 million, and $12.9 million as of July 8, 2019.
In the Lancaster Division, overall revenue grew 7% year-over-year and 8% year-to-date. Buffalo revenues were up 30.7% to $2.5 million, and RTP revenues were up 43.5% to $1.4 million over the same period last year. Software revenue at $5.4 million is a record for the company in the third quarter with the highest level of renewal business. Consulting revenue in this Division grew 53%. On its small base, reflecting the demand however for collaborative efforts for GastroPlus enhancements and PBPK modeling assistance. Further, 81% of the revenue was from renewals, 10% from new licenses and 9% from consulting. The renewal rates were 85% based on accounts and 93% based on fees. The license units of 284 were up 5% year-over-year. The company has added 7 new commercial companies and 11 non-profit groups. The company have projects with 28 companies and 4 funded collaborations.
The gross profit rose 16.6% to $7.6 million, representing a 76.6% gross margin in the third quarter of fiscal 2019 compared to $6.5 million or 76.3% gross margin in the same quarter last year. Plus the sales increase this quarter of about $300,000 compared to the prior year due mainly to growth in labor count, as well as salary and benefit, increases accounting for the majority of the change.
SLP has declared a cash dividend of $0.06 per share of the Company’s common stock payable on August 1, 2019, to shareholders of record as of July 25, 2019.
Meanwhile, internationally, the company made progress as well. While the company did not add personnel in Europe during the third quarter, the company had hired two additional consultants who will begin in the fourth quarter in Europe, doubling the staff in this geography. In Asia, the company had completed the expansion of the existing distributor relationships to include the DILIsym products.