EX-99.1 2 simulations_8k-ex9901.htm PRESS RELEASE

Exhibit 99.1

 

Simulations Plus

Integrating Science and Software

 

For Further Information:

Simulations Plus, Inc.

42505 10th Street West

Lancaster, CA 93534-7059

 

CONTACT:

Simulations Plus Investor Relations Hayden IR
Ms. Renée Bouché Mr. Cameron Donahue
661-723-7723 651-653-1854
renee@simulations-plus.com cameron@haydenir.com

 

For Immediate Release:

January 9, 2014

 

Simulations Plus Reports First Quarter FY2014 Financial Results

 

Net sales increase 15.3% to first quarter record $2.641 million; Earnings up 16.7%

 

LANCASTER, CA, January 9, 2014 – 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 2014 ended November 30, 2013 (1QFY14).

 

1QFY14 highlights compared with 1QFY13:

·Net sales increased 15.3% to first-quarter record $2.641 million from $2.290 million
·Gross profit increased 15.2% to $2.193 million from $1.903 million
·SG&A increased 15.0% to $1.071 million from $0.931 million
·R&D expenditures decreased 10.1% to $162,000 from $180,000
·Income before taxes increased 10.8% to $0.992 million from $0.896 million
·Net income increased 16.7% to $685,000 from $587,000
·Diluted earnings per share increased 16.7% to $0.042 from $0.036

 

Mr. John Kneisel, chief financial officer of Simulations Plus, said: “Increased Selling, General and Administrative (SG&A) expenses for 1QFY14 were due to increased commissions on sales to dealers in Asia, increases in salaries and wages, and increases in costs related to trade shows and travel, all of which outweighed decreases in M&A consultant fees and advertising costs. R&D expenses decreased due to increased scientific staff time spent on capitalized software development activities. A lower income tax rate for 1QFY14 resulted in a provision for income taxes of $307,000, nearly the same dollar amount as for 1QFY13 ($309,000). Cash increased to $10.55 million on November 30, 2013, compared to $10.18 million on August 31, 2013, after distributing $643,000 in dividends during 1QFY14. Shareholders’ equity was $14.35 million at the end of 1QFY14 compared to $14.24 million on August 31, 2013.”

 

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Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Fiscal year 2014 is off to a very good start with this record first quarter. Revenues and earnings are both up nicely in spite of the fact that we completed all of our recent funded collaborations prior to the quarter. Our software development activities on the next releases of ADMET Predictor™, GastroPlus™, and MedChem Studio™ are proceeding well, and we hope to release our new MembranePlus™ software product in the second calendar quarter of this year. We continue to interview candidates to expand the technical team and we continue to look for opportunities to grow the business via acquisition. Our new NCE (new chemical entity) project is proceeding well with the synthesis of a number of molecules just completed and we hope to select the contractor for testing these molecules to determine their activities against their COX-2 (cyclooxygenase-2) and COX-1 enzyme targets in the next few days.”

 

The Company has announced an investor conference call that will be webcast live at 1:15 PST/4:15 PM EST today, Thursday, January 9, 2014, which may be accessed by first registering at the following website: https://www2.gotomeeting.com/register/132664954. Upon registering, you will receive a confirmation e-mail with a unique link and instructions for joining the call. Please dial in five to ten minutes prior to the scheduled start time. For listen-only mode, you may dial (646) 307-1721, and enter access code 176-825-537.

 

About Simulations Plus, Inc.

 

Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation and modeling software, which is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, agrochemical, and food industry companies worldwide. 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 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. 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.

 

--Tables follow –

 

 

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SIMULATIONS PLUS, INC.

CONDENSED BALANCE SHEETS

As of

 

         
   November 30,   August 31, 
ASSETS        
   2013   2013 
Current assets          
Cash and cash equivalents  $10,554,707   $10,179,298 
Prepaid income taxes   64,798    301,573 
Accounts receivable, net of allowance for doubtful accounts of $0   1,866,445    1,910,615 
Contracts receivable   289,040    203,913 
Prepaid expenses and other current assets   173,075    192,173 
Deferred income taxes   188,126    184,258 
Total current assets   13,136,191    12,971,830 
Long-term assets          
Capitalized computer software development costs, net of accumulated amortization of $5,993,404 and $5,801,578   3,072,547    2,891,169 
Property and equipment, net   115,927    117,987 
Intellectual property, net of accumulated amortization of $13,125 and $11,250   61,875    63,750 
Other assets   18,445    18,445 
Total assets  $16,404,985   $16,063,181 
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Current liabilities          
Accounts payable  $235,422   $146,011 
Accrued payroll and other expenses   337,603    311,209 
Accrued bonuses to officer   30,000    60,000 
Other current liabilities   19,859    19,859 
Deferred revenue   168,241    89,227 
Total current liabilities   791,125    626,306 
           
Long-term liabilities          
Deferred income taxes   1,220,435    1,146,389 
Other long-term liabilities   43,028    47,993 
Total liabilities   2,054,588    1,820,688 
           
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 16,073,894 and 16,030,894 shares issued and outstanding   4,545    4,502 
Additional paid-in capital   4,908,456    4,842,794 
Retained earnings   9,437,396    9,395,197 
Total shareholders' equity   14,350,397    14,242,493 
           
Total liabilities and shareholders' equity  $16,404,985   $16,063,181 

 

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SIMULATIONS PLUS, INC.

CONDENSED STATEMENTS OF OPERATIONS

For the three months ended

 

 

   November 30 
   2013   2012 
         
Net sales  $2,641,000   $2,290,094 
Cost of sales   448,420    386,870 
Gross profit   2,192,580    1,903,224 
Operating expenses          
Selling, general, and administrative   1,071,091    931,060 
Research and development   162,116    180,335 
Total operating expenses   1,233,207    1,111,395 
           
Income from operations   959,373    791,829 
           
Other income (expense)          
Interest income   9,026    13,728 
Miscellaneous income   –    15,404 
Gain on currency exchange   23,709    74,654 
    –    – 
Total other income (expense)   32,735    103,786 
           
      
Income from continuing operations before provision for income taxes   992,108    895,615 
           
Provision for income taxes   (306,953)   (308,629)
           
Net Income  $685,155   $586,986 
           
Earnings per share          
Basic  $0.04   $0.04 
Diluted  $0.04   $0.04 
           
Weighted-average common shares outstanding     
Basic   16,049,707    15,927,806 
Diluted   16,366,720    16,365,552 

 

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