John Kneisel, CFO, stated: "This quarter represents the first quarter where we're reporting preliminary consolidated annual and Q4 revenues that include three divisions - Simulations Plus, Cognigen, and the newly acquired DILIsym Services, which acquisition was completed on June 1. Net income will not be released until we complete our annual audit and review of our Annual Report on Form 10-K. We expect to file our 10-K with the U.S. Securities and Exchange Commission on or before the November 14, deadline."
John Kneisel, CFO of Simulations Plus, stated: "In accordance with our policy to release timely financial information to our shareholders, we are releasing preliminary revenues for Q3. Earnings will not be released until just prior to the filing of our quarterly report on Form 10-Q. We expect to file our 10-Q with the U.S. Securities and Exchange Commission on or before the July 10, 2017 deadline." Preliminary revenues for the three months ended May 31, 2017, were $6.69M, compared to $6.01M for the same period in 2016. This represents an increase of 11.3%, or $680,000.
Simulations Plus announced that it has entered into a Stock Purchase Agreement with DILIsym Services, Inc. of Research Triangle Park, North Carolina. Pursuant to the Agreement, upon closing, DILIsym Services will become a wholly owned subsidiary of Simulations Plus and will continue to operate under the DILIsym Services name. This accretive acquisition will result in the total number of Simulations Plus employees increasing from 68 to 79, and is expected to add more than $3M to the revenues of the combined company in the coming fiscal year 2018. The Agreement calls for the acquisition of DILIsym Services by Simulations Plus with DILIsym Services becoming a wholly owned subsidiary of Simulations Plus following the closing of the acquisition, which is subject to final due diligence and other closing conditions. The closing date of the proposed acquisition is anticipated to be June 1, 2017. Under the terms of the Agreement, Simulations Plus will pay the shareholders of DILIsym Services cash consideration of up to $10M, comprised of $5M up front plus an earn-out of up to an additional $5M over the next three years, based on the profitability of the DILIsym Services division. The Agreement provides that $1M of the total up-front consideration will be held back for 18 months to satisfy any indemnifiable claims that may arise pursuant to the terms of the Agreement.
HIGHER: RetailMeNot (SALE), up 49.1% after it agreed to be acquired by Harland Clarke for $11.60 per share... Aurinia Pharmaceuticals (AUPH), up 4.3% after the stock was initiated with an Overweight rating at Cantor. DOWN AFTER EARNINGS: Simulations Plus (SLP), down 8.7%... SeaChange (SEAC), down 4.1%. ALSO LOWER: Cytori Therapeutics (CYTX), down 19.2% after it filed to sell common stock.
Reports Q2 revenue $5.71M, one estimate $5.54M. Walt Woltosz, chairman and chief executive officer of Simulations Plus, concluded: "Once again, we have achieved record results for the quarter. Our momentum continues, and with the need for increased productivity and a reduction in the time and cost to bring new drugs to market, we expect the trend for ever-increasing use of modeling and simulation in pharmaceutical research to continue for the foreseeable future."