Current Report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

(Date of the earliest event reported)

Simulations Plus, Inc.

(Exact name of registrant as specified in its charter)

California

(State or other jurisdiction

of incorporation)

000-32046

(Commission

File Number)

95-4595609

(I.R.S. Employer

Identification No.)

42505 10^th Street West, Lancaster, California 93534

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code

Item 2.01 Results of Operations and Financial Condition

On November 9, 2006, Simulations Plus, Inc., a California corporation (the "Company"), issued a press release reporting preliminary financial results for the fiscal year ending August 31, 2006. A copy of the press release hereto is attached as Exhibit 99.1 to this current report and is incorporated herein by reference.

On the same date, the company’s CEO presented financial results for the fiscal year ending August 31, 2006 at Earnings Conference Call. A copy of the Power Point Presentation hereto is attached as Exhibit 99.2 to this current report and is incorporated herein by reference.

This report on Form 8-K (the "Report"), including the disclosures set forth herein, contains certain forward-looking statements that involve substantial risks and uncertainties. When used herein, the terms "anticipates," "expects," "estimates," "believes" and similar expressions, as they relate to us or our management, are intended to identify such forward-looking statements. Forward-looking statements in this Report or hereafter, including in other publicly available documents filed with the Securities and Exchange Commission (the "Commission"), reports to the stockholders of Simulations Plus, Inc., a California corporation (the "Company" or "us," "our" or "we") and other publicly available statements issued or released by us involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management's best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission, each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.

Item 9.01 Financial Statements and Exhibits

Press Release dated November 9, 2006.

Power Point Presentation for the Earnings Conference Call on November 9, 2006.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	SIMULATIONS PLUS, INC.

Dated: November 9, 2006	By:	/s/ Momoko Beran
		Momoko Beran Chief Financial Officer

Exhibit Number	Description
99.1	Press Release dated November 9, 2006.
99.2	Power Point Presentation for the Earnings Conference Call on November 9, 2006.

Simulations Plus Reports Preliminary FY2006 Financial Results

Annual Revenues Up 23%, Net Earnings Up 158%

LANCASTER, CA, November 9, 2006 - Simulations Plus, Inc. (AMEX: SLP), a leading provider of ADMET absorption simulation and neural net structure-to-property prediction software for pharmaceutical discovery and development, today reported its preliminary financial results for its 2006 fiscal year (FY06) ended August 31, 2006.

Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: “These results are considered preliminary because we have not yet completed the final review of our 10-KSB. We believe that all adjustments have been made and that the numbers reported here will not have any significant change; however, there is always the possibility that the review process could result in some changes. We expect to file our 10-KSB within the next couple of weeks when the reviews have been completed. As noted in the press release concerning our conference call, we are providing results at this time because our CEO will not be available next week and we did not want to delay the conference call until after his return.”

Ms. Beran continued: “I am happy to report that consolidated revenues for the fourth quarter were $1,766,000, an increase of 44% from $1,230,000 in the fourth quarter of fiscal year 2005 (FY05). Revenues from pharmaceutical software and services were up 113% to $1,007,000 from $473,000 in the fourth quarter of FY05. Fourth quarter revenues for our Words+ subsidiary increased 0.3% to $759,000 from $757,000 in the fourth quarter of FY05. SG&A increased by approximately 41% to $860,000 in the fourth quarter of FY06, compared to $612,000 in the fourth quarter of FY05, due to increases in selling expenses such as commissions and trade shows, accrued bonuses to the Company’s CEO and Corporate Secretary, increases in the stipends paid to outside members of the board of directors for the first time since the Company incorporated, recruitment expenses, legal and accounting fees, and salary increases along with payroll-related expenses such as health insurance, payroll taxes, and 401(k) matching contributions, which outweighed decreases in investor relations and repairs.

“Net income before taxes for the fourth quarter increased 294% to $370,000 from $94,000 in the fourth quarter of FY05. Fourth quarter earnings were impacted by a provision for income taxes of $121,000 that will not actually be paid, but rather will be a write-off from our deferred tax asset. Consolidated net earnings for the quarter increased 3,013% to $249,000, or $0.03 per diluted share, as compared to net earnings of $8,000, or $0.002 per diluted share for the fourth quarter of fiscal year 2005.

“For the entire fiscal year 2006, revenues increased 23.2% to $5,855,000 from $4,753,000 for FY05. Sales of pharmaceutical software licenses and services were $3,186,000, an increase of 54.0 % over $2,069,000 in FY05, while our Words+ subsidiary’s sales were $2,669,000, a decrease of 0.6% from $2,684,000 in FY05. Net income before taxes for FY06 increased 155.5% to $889,000 from $348,000 in FY05. Net earnings for FY06 were $676,000, or $0.08 per diluted share, an increase of 158% over $262,000, or $0.03 per diluted share for FY05. Shareholders’ equity at the end of FY06 increased 16.6% to $5,669,000, as compared to $4,862,000 at the end of FY05.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, noted: “Fiscal year 2006 has been an exciting year for Simulations Plus, with significant growth in revenues and earnings, many new customers, expansion of our Life Sciences team, significant improvement in products across the board, and strengthening in our marketing and sales activities in both companies. Cash is excellent, we remain debt-free, and we are looking for additional opportunities to expand. Although there are three weeks left in the first quarter of FY07, and we often see a surge in the last three weeks, I can tell you now that sales for the first quarter will already set a new first quarter record.”

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 have two other businesses that are based on our proprietary technologies: a wholly owned subsidiary, Words+, Inc., which provides assistive technologies to persons with disabilities; and an educational software series for science students in middle and high schools known as FutureLab^™. For more information, visit our Web site at www.simulations-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. 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, 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.

Investor Relations Conference - Call November 9, 2006

Introduction and Welcome Why preliminary results CEO out of country next week - Agenda -Fiscal year 2006 summary -Strategy going forward -Guidance going forward - Questions and Answers

Fiscal year 2006 Summary - Gross revenues = $5.855 MM (up 23%) - SG&A = $2.97 MM - R&D = $0.45 MM Income Before Income Taxes = $0.89 MM - Net Earnings = $0.68 MM ($0.083/share) (up 156%) - Cash flow = ($69,000) - after spending about $800,000 on acquisitions - so most the cash was recovered during the same fiscal year Acquisition: Certain assets of Bioreason, Inc. from its Acquisition: Certain assets of Bioreason, Inc. from its creditors in November 2005 - Staffing: Life Sciences team nearly doubled and still growing

Progress - - ADMET Modeler Predictor/ADMET Modeler - - Merged into single program - New model to predict binding affinity of potential new drug molecules to HIV integrase to be released soon - Method for rapid calculation of a certain type of electrical charge developed charge developed - speed reduced from over 700 CPU hours to about 10 seconds with acceptable accuracy - Additional state-of-the the-art modeling methods incorporated into art modeling methods incorporated into ADMET Modeler -Developed method for visualization of input sensitivities for complex models to guide chemists in how to modify molecules complex models to guide chemists in how to modify molecules to improve their properties Demonstrated combined use of ADMET Predictor and ClassPharmer together

Progress - 2 ClassPharmer - -Acquired as version 3.5 - slow, limited - slow, limited - Merged ClassPharmer and ChemTK to produce ClassPharmer 4.0 - Dramatic speed increase Able to handle much larger number of molecules Version 4.1 released in ____, Version 4.2 will release soon - Very successful first year renewals + new customers - renewals + new customers DDDPlus - - Significant improvements over version 1.0 completed - Polymer matrix formulations More accurate physical model of dissolution Addition of surfactant effects Optimization of in vitro experiments to better mimic experiments in vivoin vivo - -Evaluation by major pharma with subsequent license with subsequent license

Progress - 3 - GastroPlus - - Flagship product and biggest money maker -- Becoming a standard part of studies in several major pharmaceutical companies - pharmaceutical companies - Released version 5.0 in December 2005 added physiologically based pharmacokinetics (PBPK) modeling - Particle size distribution added in version 5.1 released in ____. - Numerous improvements in user convenience features completed Version 5.2 nearing release

Progress - 4 - Words+ subsidiary Added consulting marketing and sales manager - Expanded U.S. sales force - SAM software migrated to PC SAM software migrated to PC’s from PDA Improved MicroCommPac (part of almost every (part of almost every system) - New laptop provides improved margins on Medicare/Medicaid systems - Popular software voice synthesizer option added

Strategy Going Forward Expand product line and services - - Pharmaceutical software - New functionalities for current products Completion of MembranePlus™ - Seeking opportunities to partner or acquire new products - - Pharmaceutical consulting services - Expanding Simulation Technologies team to handle growing demand - - Words+ subsidiary -Expanded platforms for SAM™ software - Internationalize software (French, German) to expand markets - Forge additional collaborative relationships within academia, government, and industry organizations Continue aggressive marketing and sales activities begun last year in both companies

Summary - Company is strong and growing - No debt -Strong cash flow and consistent growth in shareholders’ equity demonstrates real growth Cash spent on acquisitions was substantially replaced in one year Growing dedicated and extremely talented workforce working to grow the product lines in both businesses Expanding marketing and sales efforts in both businesses Guidance for FY2007: We expect revenues to be > $6.8 MM Slides available by eSlides available by e-mail on request through info@simulations- plus.com