simulations plus announces leadership changes and restructuring plan

Published 02/06/2025, 13:14
simulations plus announces leadership changes and restructuring plan

Simulations Plus , Inc. (NASDAQ:SLP), based in Research Triangle Park, North Carolina, has announced several leadership changes and a restructuring plan, according to a recent SEC filing. The company, currently valued at $640 million and maintaining a strong financial health score according to InvestingPro, has demonstrated robust revenue growth of 21% over the last twelve months. John DiBella has been appointed as the Chief Revenue Officer, effective May 30, 2025. DiBella, who has been with the company since 2003, previously served as the Business Unit President for PBPK and Cheminformatics Solutions.

The company also announced the departure of Daniel Szot, the former Chief Revenue Officer, who will leave at the end of the third fiscal quarter to pursue other opportunities.

Other leadership changes include Will Frederick assuming the role of Executive Vice President and Chief Financial Officer, while Josh Fohey takes on the position of Chief Operating Officer. Jill Fiedler-Kelly has been named Interim President of Services Solutions, and Dr. Jonathan Chauvin and Erik Guffrey will serve as Co-Chief Product and Technology Officers. Additionally, Steven Chang assumes the role of Global Head of Strategic Alliances, Jenna Rouse becomes Global Head of Clinical Operations, and Murry Alper is appointed Global Head of Medical (TASE:BLWV) Communications.

Simulations Plus has also announced a restructuring plan aimed at enhancing operational efficiency and reducing operating expenses. This includes a workforce reduction of approximately 23 employees, representing about 10% of its full-time staff. The company expects to incur charges of approximately $0.7 million related to severance and employee benefits, with these expenses anticipated to be recognized in the fiscal year ending August 31, 2025. The restructuring is projected to reduce operating expenses by about $4.3 million annually. With a healthy current ratio of 4.37 and minimal debt, InvestingPro analysis suggests the company is well-positioned to manage this transition. InvestingPro subscribers have access to 10+ additional key insights about SLP’s financial health and future prospects through the comprehensive Pro Research Report.

These announcements were made through a recent SEC filing and highlight the company’s efforts to streamline operations and adjust its leadership team. Despite trading at a relatively high earnings multiple, analysts expect net income growth this year, according to InvestingPro data.

In other recent news, Simulations Plus has reported its financial results for the second quarter of fiscal year 2025. The company achieved a revenue of $22.4 million, marking a 22.5% increase compared to the previous year and exceeding both analyst and consensus estimates. However, the adjusted EBITDA fell to $6.6 million, which was a decline from the prior year and below expectations. Despite the revenue growth, the company’s software division slightly missed expectations, while the services division showed a strong performance with a 34% increase in revenue. Analysts at BTIG have adjusted their outlook, reducing the price target to $41 from $50, while maintaining a Buy rating. Citizens JMP has reaffirmed a Market Perform rating, noting the mixed performance due to increased operational expenses. Additionally, Simulations Plus has appointed Grant Thornton LLP as its new auditor, replacing Rose, Snyder & Jacobs LLC. The company also launched DILIsym 11, an updated version of its software with a new pediatric focus, enhancing its capabilities in predicting drug-induced liver injury in children.

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