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Simulations Plus Reports Third Quarter FY2010 Financial Results

^{Published on 2010-07-16 05:05:53 - Market Wire}
 

LANCASTER, Calif.--([ BUSINESS WIRE ])--Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported financial results for its third quarter of fiscal year 2010 ended May 31, 2010 (3QFY10).

3QFY10 highlights compared with 3QFY09:

• Consolidated revenues increased 14.9% to record $3.1 million from $2.7 million
• Pharmaceutical software and services revenues up 17.1% to $2.32 million from $1.99 million
• Words+ subsidiary revenues up 9.1% to $794,000 from $728,000
• Gross profit up 13.6% to $2.42 million from $2.13 million
• SG&A increased 13.0% to $1.12 million from $0.99 million
• R&D expense decreased 20.4% to $234,000 from $294,000
• Income before income taxes up 25.2% to $1.11 million from $0.89 million
• Net income up 30.0% to $740,000 from $569,000
• Diluted earnings per share $0.044, an increase of 30.8% from $0.034

First nine months FY10 (9moFY10) highlights compared with 9moFY09:

• Consolidated revenues increased 16.5% to record $8.5 million from $7.3 million
• Pharmaceutical software and services revenues up 21.0% to $6.3 million from $5.2 million
• Words+ subsidiary revenues up 5.2% to $2.2 million from $2.1 million
• Gross profit up 17.4% to $6.5 million from $5.5 million
• SG&A increased 9.6% to $3.2 million from $2.9 million
• R&D expense decreased 12.0% to $748,000 from $849,000
• Income before income taxes up 44.6% to $2.7 million from $1.9 million
• Net income up 45.0% to $1.8 million from $1.2 million
• Diluted earnings per share $0.11, an increase of 51.1% from $0.07
• Cash increased to $8.6 million from $7.5 million at the beginning of the fiscal year
• Shareholdersa™ equity increased 21% to $12.8 million from $10.6 million at the beginning of the fiscal year

Ms. Momoko Beran, chief financial officer of Simulations Plus, said, aWea™ve again experienced a new record quarter as well as a new record for the first nine months. Shareholder equity continued to grow to $12.8 million from $10.6 million at the beginning of the fiscal year. Cash increased to $8.6 million as of May 31 from $7.5 million at the beginning of the fiscal year, in spite of spending approximately $603,000, including brokerage fees, to repurchase about 257,000 shares of our stock on the open market. Since May 31, we have repurchased approximately 52,000 additional shares at an average price of $2.39, for about $127,000, including brokerage fees. We are authorized to repurchase a little over 690,000 remaining shares between now and next February, and it is currently our intention to do so. The Company does not disclose the specifics of its repurchase strategy, other than to say that our goal is to buy back as many shares as we can within the constraints imposed on repurchasing, and at prices management determines subject to market conditions.a

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added, aSimulations Plus continues to set the standards for simulation and modeling software used in pharmaceutical research and development. GastroPlusa" Version 7.0 will be released during the fourth quarter, a major upgrade that will add three important market-expanding capabilities for drug-drug interaction, ocular drug delivery, and nasal/pulmonary drug delivery. New versions of ADMET Predictora" and MedChem Studioa" (formerly ClassPharmera") will also be released in the fourth quarter, marking the culmination of several man-years of effort that provide major improvements to all of these programs. We continue to receive consulting contracts at a steady pace that serve as evidence of our world-class expertise in absorption and pharmacokinetics. And our search for accretive acquisitions and for talented staff to expand our Life Sciences and Marketing and Sales teams is ongoing.a

About Simulations Plus, Inc.

Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation software, which is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies worldwide. We also provide a productivity tool called Abbreviate! for PCs and the Apple iPhone as well as an educational software series for science students in middle and high schools known as FutureLab^a". Our wholly owned subsidiary, Words+, Inc., provides assistive technologies to persons with disabilities, including the computerized communication system used by world-famous theoretical astrophysicist Professor Stephen Hawking. For more information, visit our Web sites at [ www.simulations-plus.com ] and [ www.words-plus.com ].

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995a" With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like abelieve,a aexpecta and aanticipatea mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the Securities and Exchange Commission.