Drug discovery and development software developer Simulations Plus (SLP) reported upbeat results in its third quarter with revenue climbing 26.7% to $8.6 million, driven by margin increases. The company said simulation and modeling, and consulting services based on silico modeling is gaining traction among its customers and is helping Simulations Plus to achieve consistent growth.
As for earnings, the company met analysts’ expectations with profit jumping 15.7% to $2.4 million. On a per share basis, earnings increased 13.7% to $0.13. The double-digit increase in earnings was helped by the increase in revenue, while partially offset by increased expenses.
“Simulations Plus continues to execute on its growth strategy and deliver quantifiable value to its expanding customer base. With more than a decade of consistent growth in revenue and earnings, we believe we are well-positioned for continued success, especially as in silico modeling takes on an increasing importance with our customers,” said Walt Woltosz CEO.
Simulations Plus also declared a quarterly cash dividend of $0.06 per share of the company’s common stock payable on August 2, 2018, to shareholders of record as of July 26, 2018.
Despite the upbeat results, the Lancaster, California-based company’s stock dipped more than 3% in after-hours trading. Shares of Simulations Plus had a splendid run since the beginning of 2018 jumping about 50% and surging 60% in the past one year.