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 first quarter of fiscal year 2011 ended November 30, 2010 (1QFY11).
1QFY11 highlights compared with 1QFY10:
- Consolidated revenues up 15.4% to record $2.811 million from $2.437 million
- Pharmaceutical software and services revenues up 18.2% to $2.050 million from $1.735 million
- Words+ subsidiary revenues up 8.3% to $761,000 from $702,000
- Gross profit up 13.1% to $2.070 million from $1.830 million
- SG&A increased 5.8% to $1.062 million from $1.004 million
- R&D expenditures decreased 14.4% to $395,000 from $462,000
- Income before income taxes up 24.7% to $0.825 million from $0.661 million
- Net income up 32.0% to $568,000 from $430,000
- Diluted earnings per share up 34% to $0.0343 from $0.0256
Ms. Momoko Beran, chief financial officer of Simulations Plus, said, “We’re pleased to report these results that show continued strong performance in both business units. Cash at the end of 1QFY11 was $8.873 million compared to $7.973 million at the end of 1QFY10, and compared to $9.63 million at the beginning of the quarter. We used $1.190 million of our cash to repurchase 397,680 shares during the first quarter. Although we incurred this expenditure, shareholders’ equity increased 15.4% to $12.482 million compared to $10.812 million in 1QFY10.”
Walt Woltosz, chairman and chief executive officer of Simulations Plus, added, “This is yet another record first quarter for both revenues and earnings. We’ve experienced steady growth and new record quarter-over-quarter performance for a number of years, including through the recent global downturn for so many other businesses. We believe our emphasis on providing the very best in our product areas, an aggressive marketing and sales program, strong customer support, and frugal expense management have been the keys to this success. We continue to seek accretive acquisitions, and while we’ve investigated a number of them in the past couple of years, after due diligence we discovered either inadequate technology or unfavorable business terms for our shareholders. This area remains a high priority and we will continue to seek favorable acquisitions. We are also expanding staff and outsourcing some activities in order to enhance and expand our product lines.”
The Company has announced an earnings conference call for Friday, January 14, at 11:00 EST, which can be joined by going to: https://www2.gotomeeting.com/register/911775626. For listen-only mode, dial 516-453-0014 and enter access code 481-048-688.
About Simulations Plus, Inc.
Simulations Plus, Inc. is a premier developer of groundbreaking drug discovery and development simulation software, which is licensed and used worldwide by major pharmaceutical and biotechnology companies for drug research and in the study of environmental toxicology. 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™. Our wholly owned subsidiary, Words+, Inc., provides assistive technologies to persons with disabilities. Simulations Plus, Inc. is headquartered in Southern California and trades on the NASDAQ Capital Market under the symbol “SLP.” 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 1995 – 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 “believe,” “expect” and “anticipate” 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.
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SIMULATIONS PLUS, INC. AND SUBSIDIARY |
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Condensed Consolidated Balance Sheets |
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| at November 30, 2010 (Unaudited) and August 31, 2010 (Audited) | |||||||||
| ASSETS | |||||||||
| November 30, | August 31, | ||||||||
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2010 |
2010 |
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| Current assets | |||||||||
| Cash and cash equivalents | $ | 8,873,080 | $ | 9,631,762 | |||||
| Income tax refund receivable | 259,434 | 225,510 | |||||||
| Accounts receivable, net of allowance for doubtful accounts | |||||||||
| and estimated contractual discounts of $395,358 and $421,118 | 1,537,713 | 1,291,350 | |||||||
| Contracts receivable | 166,669 | 184,081 | |||||||
| Inventory | 522,478 | 554,867 | |||||||
| Prepaid expenses and other current assets | 105,193 | 138,163 | |||||||
| Deferred income taxes | 310,024 | 364,264 | |||||||
| Total current assets | 11,774,591 | 12,389,997 | |||||||
| Capitalized computer software development costs, | |||||||||
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net of accumulated amortization of $4,674,008 and $4,487,757 |
2,187,458 | 2,186,419 | |||||||
| Property and equipment, net | 75,364 | 55,984 | |||||||
| Customer relationships, net of accumulated amortization of $120,935 and $118,442 | 7,107 | 9,600 | |||||||
| Other assets | 18,445 | 18,445 | |||||||
| Total assets | $ | 14,062,965 | $ | 14,660,445 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable | $ | 309,480 | $ | 239,424 | |||||
| Accrued payroll and other expenses | 506,632 | 511,106 | |||||||
| Accrued bonuses to officer | 103,402 | 60,000 | |||||||
| Accrued income taxes | 102,914 | 261,861 | |||||||
| Accrued warranty and service costs | 39,605 | 35,586 | |||||||
| Deferred revenue | 33,170 | 96,092 | |||||||
| Total current liabilities | 1,095,203 | 1,204,069 | |||||||
| Long-term liabilities | |||||||||
| Deferred income taxes | 486,072 | 410,523 | |||||||
| Total liabilities | 1,581,275 | 1,614,592 | |||||||
| Commitments and contingencies | |||||||||
| Shareholders' equity | |||||||||
| Preferred stock, $0.001 par value | |||||||||
| 10,000,000 shares authorized | |||||||||
| no shares issued and outstanding | - | - | |||||||
| Common stock, $0.001 par value | |||||||||
| 50,000,000 shares authorized | |||||||||
| 15,501,979 and 15,833,006 shares issued and outstanding | 3,973 | 4,304 | |||||||
| Additional paid-in capital | 4,759,943 | 5,891,268 | |||||||
| Retained earnings | 7,717,774 | 7,150,281 | |||||||
| Total shareholders' equity | 12,481,690 | 13,045,853 | |||||||
| Total liabilities and shareholders' equity | $ | 14,062,965 | $ | 14,660,445 | |||||
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SIMULATIONS PLUS, INC. AND SUBSIDIARY |
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Condensed Consolidated Statements of Operations |
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| For the three months ended November 30 | ||||||||||
| (Unaudited) | ||||||||||
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2010 |
2009 |
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| Net sales | $ | 2,811,286 | $ | 2,437,052 | ||||||
| Cost of sales | 740,983 | 606,889 | ||||||||
| Gross profit | 2,070,303 | 1,830,163 | ||||||||
| Operating expenses | ||||||||||
| Selling, general, and administrative | 1,062,375 | 1,004,273 | ||||||||
| Research and development | 208,039 | 261,325 | ||||||||
| Total operating expenses | 1,270,414 | 1,265,598 | ||||||||
| Income from operations | 799,889 | 564,565 | ||||||||
| Other income (expense) | ||||||||||
| Interest income | 24,641 | 22,486 | ||||||||
| Miscellaneous income | 231 | 231 | ||||||||
| Gain on currency exchange | - | 73,232 | ||||||||
| Gain on sale of assets | - | 1,024 | ||||||||
| Interest expense | (118 | ) | (302 | ) | ||||||
| Total other income (expense) | 24,754 | 96,671 | ||||||||
| Income before income taxes | 824,643 | 661,236 | ||||||||
| Provision for income taxes | (257,150 | ) | (231,433 | ) | ||||||
| Net income | $ | 567,493 | $ | 429,803 | ||||||
| Basic earnings per share | $ | 0.04 | $ | 0.03 | ||||||
| Diluted earnings per share | $ | 0.03 | $ | 0.03 | ||||||
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Weighted-average common shares outstanding |
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| Basic | 15,691,345 | 15,648,630 | ||||||||
| Diluted | 16,525,142 | 16,775,287 | ||||||||