Exhibit 99.1
![7D31DB5E-2666-46EF-BAF6-791B8297C46F[1]](image_001.gif)
For Further Information:
Simulations Plus, Inc.
42505 10th Street West
Lancaster, CA 93534-7059
| CONTACT: | |
| Simulations Plus Investor Relations | Hayden IR |
| Ms. Renee Bouche | Mr. Cameron Donahue |
| 661-723-7723 | 651-653-1854 |
| renee@simulations-plus.com | cameron@haydenir.com |
For Immediate Release:
January 14, 2016
Simulations Plus Reports First Quarter FY2016 Financial Results
Consolidated net revenues up 18.4%; net income increased 109%
LANCASTER, CA, January 14, 2016 – Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for all phases of pharmaceutical discovery and development from the earliest discovery through all phases of clinical trials, today reported financial results for its first quarter of fiscal year 2016, the period ended November 30, 2015 (1QFY16).
1QFY16 highlights compared with 1QFY15:
| · | Net revenues increased 18.4%, or $752,000, to a new record $4.84 million from $4.09 million |
| · | Gross profit increased 21.6% to $3.76 million from $3.09 million |
| · | SG&A was $1.68 million, a decrease of $403,000, or 19.4%, from $2.08 million |
| · | Income before taxes increased $971,000, or 30.1%, to $1.72 million from $746,000 |
| · | Net income increased $578,000, or 109%, to $1.11 million from $529,000 |
| · | Diluted earnings per share increased $0.03 to $0.06 from $0.03 per share |
John Kneisel, chief financial officer, said: “This quarter is the first truly comparative period since the Company acquired Cognigen Corporation at the beginning of our 2015 fiscal year. It reflects earnings as anticipated from the acquisition as well as quarterly expenses unencumbered by acquisition costs. Last year’s first quarter (1QFY15) operating income was substantially affected by approximately $400,000 in one-time fees and expenses that were incurred for the acquisition. We continue to maintain our strong financial position with current cash balances of approximately $7.8 million and no loans.”
Ted Grasela, president of the Company, added: “We continue to offer new and expanded consulting services to clients of both companies. In addition, software development activities have continued apace and exciting opportunities are emerging as our scientists gain cross-disciplinary experience during our collaborations.”
John DiBella, vice president for marketing and sales for Simulations Plus, said: “The positive trend of strong software sales and increasing requests for our consulting services continued in 1QFY16. The number of software units licensed saw a 29% increase compared to 1QFY15, which was driven by robust renewal rates and 23 new organizations, or new departments at existing organizations, now utilizing our technology. Education remains a key focus for us in 2016, as we have an aggressive workshop schedule planned for the U.S., Europe, and Asia to allow us to train more scientists on the applications of our technology. This, coupled with new releases of all major software products expected in FY16, gives us confidence in our ability to continue expanding our client base. In addition to our vigorous marketing and sales activities in 1QFY16, we introduced a unified Simulations Plus brand to better present our comprehensive offering of powerful software and consulting expertise, which we believe will resonate across different departments, companies, and markets. We will be embarking on a website redesign project in 2016 to support this effort.”
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Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Fiscal year 2016 is off to a very good start with this record first quarter. I am particularly excited about the upcoming release of our new PKPlus™ software, which we believe will have a significant impact on revenues and earnings later in FY16. I’m also encouraged by the contacts we’ve been making in the aerospace industry regarding the products we’ve been developing for use in the aerospace industry. These products use our artificial neural network ensemble modeling engine and we are pursuing customers and funding to develop customized tools and applications in this new market.”
Investor Conference Call
The Company has announced an investor conference call that will be webcast live at 1:15 p.m. PST/4:15 p.m. EST on Thursday, January 14, 2016, which may be joined by registering at the following website: https://attendee.gotowebinar.com/register/7532000268685717505. Upon registering, you will receive a confirmation e-mail with 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 (415) 930-5321, and enter access code 448-867-227.
About Simulations Plus, Inc.
Simulations Plus, Inc. is a premier developer of drug discovery and development software as well as a leading provider of both preclinical and clinical pharmacometric consulting services for regulatory submissions. The company is a global leader focused on improving the ways scientists use knowledge and data to predict the properties and outcomes of pharmaceutical and biotechnology agents. Our software is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies and regulatory agencies worldwide. Our innovations in integrating new and existing science in medicinal chemistry, computational chemistry, pharmaceutical science, biology, and physiology into our software have made us the leading software provider for physiologically based pharmacokinetic modeling and simulation. For more information, visit our website at www.simulations-plus.com.
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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 U.S. Securities and Exchange Commission.
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of
| (Unaudited) | (Audited) | |||||||
| November 30, | August 31, | |||||||
| 2015 | 2015 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,154,513 | $ | 8,551,275 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $0 | 4,042,436 | 1,593,707 | ||||||
| Revenues in excess of billings | 742,939 | 795,125 | ||||||
| Prepaid expenses and other current assets | 263,062 | 381,718 | ||||||
| Deferred income taxes | 161,431 | 210,972 | ||||||
| Total current assets | 12,364,381 | 11,532,797 | ||||||
| Long-term assets | ||||||||
| Capitalized computer software development costs, net of accumulated amortization of $7,879,689 and $7,632,421 | 3,818,371 | 3,798,339 | ||||||
| Property and equipment, net | 364,499 | 413,510 | ||||||
| Intellectual property, net of accumulated amortization of $953,125 and $801,250 | 5,121,875 | 5,273,750 | ||||||
| Other intangible assets net of accumulated amortization of $184,375 and $147,500 | 1,465,625 | 1,502,500 | ||||||
| Goodwill | 4,789,248 | 4,789,248 | ||||||
| Other assets | 34,082 | 34,082 | ||||||
| Total assets | $ | 27,958,081 | $ | 27,344,226 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 90,155 | $ | 209,407 | ||||
| Accrued payroll and other expenses | 501,935 | 429,580 | ||||||
| Accrued bonuses to officer | 30,250 | 121,000 | ||||||
| Income taxes payable | 385,095 | 43,602 | ||||||
| Other current liabilities | 19,859 | 19,859 | ||||||
| Current portion - Contracts payable | 2,604,404 | 2,604,404 | ||||||
| Billings in excess of revenues | 211,718 | 106,534 | ||||||
| Deferred revenue | 53,312 | 78,945 | ||||||
| Total current liabilities | 3,896,728 | 3,613,331 | ||||||
| Long-term liabilities | ||||||||
| Deferred income taxes | 3,123,517 | 3,190,419 | ||||||
| Payments due under Contracts payable | 1,000,000 | 1,000,000 | ||||||
| Other long-term liabilities | 3,309 | 8,274 | ||||||
| Total liabilities | $ | 8,023,554 | $ | 7,812,024 | ||||
| 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 16,996,001 and 16,943,001 shares issued and outstanding | 5,467 | 5,414 | ||||||
| Additional paid-in capital | 9,859,889 | 9,714,290 | ||||||
| Retained earnings | 10,069,171 | 9,812,498 | ||||||
| Total shareholders' equity | $ | 19,934,527 | $ | 19,532,202 | ||||
| $ | – | – | ||||||
| Total liabilities and shareholders' equity | $ | 27,958,081 | $ | 27,344,226 | ||||
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended November 30,
| Three months ended | ||||||||
| (Unaudited) | ||||||||
| 2015 | 2014 | |||||||
| Net Revenues | $ | 4,838,620 | $ | 4,086,192 | ||||
| Cost of revenues | 1,083,347 | 997,734 | ||||||
| Gross margin | 3,755,273 | 3,088,458 | ||||||
| Operating expenses | ||||||||
| Selling, general, and administrative | 1,676,433 | 2,079,169 | ||||||
| Research and development | 351,307 | 259,912 | ||||||
| Total operating expenses | 2,027,740 | 2,339,081 | ||||||
| Income from operations | 1,727,533 | 749,377 | ||||||
| Other income (expense) | ||||||||
| Interest income | 4,467 | 4,592 | ||||||
| Gain(loss) on currency exchange | (14,895 | ) | (7,790 | ) | ||||
| Total other income (expense) | (10,428 | ) | (3,198 | ) | ||||
| Income from operations before provision for income taxes | 1,717,105 | 746,179 | ||||||
| Provision for income taxes | (610,632 | ) | (217,275 | ) | ||||
| Net Income | $ | 1,106,473 | $ | 528,904 | ||||
| Earnings per share | ||||||||
| Basic | $ | 0.07 | $ | 0.03 | ||||
| Diluted | $ | 0.06 | $ | 0.03 | ||||
| Weighted-average common shares outstanding | ||||||||
| Basic | 16,966,089 | 16,830,319 | ||||||
| Diluted | 17,255,068 | 17,097,858 | ||||||
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