Lancaster software company Simulations Plus’ profit fell 22 percent in the first fiscal quarter ended Nov. 30, due to the closure of several large customers and ongoing restructuring of the firm, the company reported Tuesday. The company, which designs and licenses software used in pharmaceutical drug research, reported net income of $587,000 (4 cents a share) compared to $755,000 (6 cents) in the same period last year. Revenue increased 1.9 percent to $2.3 million. The company attributed its lower profits to ongoing restructuring following the sale of a former subsidiary last year, increased commissions and the site closures of several large customers. “A perfect storm of site closures for four large customers and major reorganizations within three other customers resulted in nearly $450,000 in lost revenues,” said Chief Executive Walt Woltosz, in a statement. Woltosz noted that aside from the closures and structural changes, the company retained 90 percent of its remaining customers and added software licenses to both new and existing customers. In Nov. 2011 the company sold off its Words+ subsidiary, which designs communications products for the disabled, to focus on its software development business. Its current focus is on the development of a new software program that will simulate molecules used in malaria treatment drugs. Shares of Simulations Plus closed at $4.18, down 12 cents or nearly 3 percent in trading on the Nasdaq.
