(1) 1.3 cent drop in net revenues, from 6.6 cents to 5.3 cents, was due to a couple of things: (a) A R&D tax credit was applied last year's quarter increased the profits last year. No tax credit (or a smaller tax credit) was applied this year. (b) Increased sales and R&D efforts this year added to costs - but these expenses should improve sales in 6-9 months.
(2) Future sales growth trends will continue - double digits growth is possible in both sales and net profits. New revenues this quarter came from new licenses - 13 new customers added. The licenses renew every year - with a 90% renewal rate. License revenues are better than one time consulting service revenues.
(3) The two new collaboration agreements will each fund one full-time scientist employee for nearly a full year. This saves the company 300K-400K in development costs in total and ultimately creates a need for the customers to buy more licenses or use additional features of the software that add to the license cost.
(4) Training courses are increasing in frequency. These courses introduce new companies to the software and how to use it. Two intro courses were conducted in China earlier this year for the first time.
(5) A malaria project is not a revenue source in the near term, but it may bring in research grants and future patent royalty income. SLP spent $120K plus employee labor on the malaria project.