Welcome!

Microsoft Cloud Authors: Liz McMillan, Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham

News Feed Item

Simulations Plus Reports Third Quarter FY2014 Financial Results

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 2014 ended May 31, 2014 (3QFY14) and first nine months of fiscal year 2014 (9moFY14) compared to the third quarter (3QFY13) and first nine months of fiscal year 2013 (9moFY13).

3QFY14 highlights compared with 3QFY13:

  • Net sales increased 20.9% to $3.741 million, an increase of $646,000 from $3.095 million
    • A large renewal order and one study contract slipped from Q2 into Q3 ($300,000)
    • Excluding this shift, the Company set a new record for revenues (11.2% increase)
  • Gross profit was up 32.9% to $3.513 million, an increase of $870,000 from $2.643 million
  • SG&A was $1.204 million, an increase of 33.3% or $301,000 from $0.904 million
    • Increased commissions on higher Asian sales, as well as increased marketing labor and travel, consulting and professional fees, and increases in salaries and wages, drove the increased SG&A
  • R&D expenditures were $552,000, an increase of $94,000 or 20.5% over $458,000
    • In 3QFY14, $317,000 was capitalized and $235,000 was expensed
    • In 3QFY13, $252,000 was capitalized and $206,000 was expensed
    • Increases were due to expanded staff, and increases in salaries and stock-based compensation for existing employees
  • Income before taxes increased 35.2% to $2.089 million, an increase of $544,000 from $1.546 million
  • Net income increased 31.6% to $1.307 million , an increase of $314,000 from $993,000
  • Diluted earnings per share increased 30.7% to $0.079 from $0.061

9moFY14 highlights compared with 9moFY13:

  • Net sales were $9.463 million, an increase of $960,000 or 11.3% from $8.503 million
  • Gross profit was $8.295 million, an increase of $1.129 million or 15.8% from $7.165 million
  • SG&A was $3.379 million, an increase of $689,000 or 25.6% from $2.690 million
    • Increased commissions on higher Asian sales, as well as increased marketing labor and travel, consulting and professional fees, and increases in salaries and wages, drove the increased SG&A
  • R&D expenditures were $1.803 million , an increase of $335,000, or 22.8% over $1.468 million
    • In 3QFY14, $1,052,000 was capitalized and $751,000 was expensed
    • In 3QFY13, $834,000 was capitalized and $634,000 was expensed
    • Increases were due to expanded staff, and increases in salaries and stock-based compensation for existing employees
  • Income before taxes increased 5.3% to $4.225 million, an increase of $212,000 from $4.014 million
  • Net income increased 6.1% to $2.803 million , an increase of $161,000 from $2.642 million
  • Diluted earnings per share was $0.171, an increase of 5.7% from $0.162

Mr. John Kneisel, chief financial officer of Simulations Plus, said: “Simulations Plus delivered record revenue growth of 20.9%, of which 8.7% was attributable to customer budget realignments. In fact, the quarter would have been a record even excluding the $300,000 in orders which shifted from the second quarter into this quarter. As expected with this growth, we experienced an increase in commission expense. Our marketing expenses have increased as we continue our aggressive sales strategy of attending more trade shows and conferences, both domestically and internationally. During this last quarter, we negotiated an agreement with TSRL, which led to increased professional fees. We anticipate this agreement will have a significant positive impact on future earnings, as we will no longer be paying royalties on GastroPlus™, but will have a fixed amortization expense of $150,000 per quarter. R&D expenses increased due to increased scientific staff. After distributing just over $800,000 in dividends during 3QFY14, and disbursing $2.5 million to TSRL, cash on May 31 was a healthy $7.8 million.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Simulations Plus continues to grow both software license sales and our consulting services business. Renewals continue to be strong, coming in at 91% for the quarter, and 20 new customers joined the Simulations Plus family of users. Also, as we announced yesterday, the Environmental Protection Agency acquired several new software licenses during this fourth quarter. Our strategy for expansion into the Asian market is proving effective, as 18% of revenue came from that territory. We continue to enhance our software products to maintain our best-in-class standing across the products line. We added to our talent in this quarter, hiring new scientists and engineers to grow organically and we continue to seek accretive acquisition possibilities. Our dividend provides a nice return to our shareholders, and although the Board of Directors reserves the right to modify or discontinue the dividend at any time to meet the needs of the business, we do not anticipate any changes at this time.”

Investor Conference Call

The Company will hold an investor conference call on Tuesday, July 8, at 1:15 PM PT/4:15 PM ET. The call will be webcast live and may be joined by registering at the following website: https://www2.gotomeeting.com/register/915571978. 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) 307-1724, and enter access code 649-164-171.

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.

 

SIMULATIONS PLUS, INC.

CONDENSED  STATEMENTS OF OPERATIONS

For the three and nine months ended May 31,

(Unaudited)

       
Three months ended Nine months ended
2014   2013 2014   2013
 
Net sales $ 3,740,567 $ 3,094,779 $ 9,463,059 $ 8,502,994
Cost of sales   227,600     451,935     1,168,219     1,337,583  
Gross profit   3,512,967     2,642,844     8,294,840     7,165,411  
Operating expenses
Selling, general, and administrative 1,204,312 903,589 3,378,950 2,689,632
Research and development   234,685     206,424     750,808     634,281  
Total operating expenses   1,438,997     1,110,013     4,129,758     3,323,913  
 
Income from operations   2,073,970     1,532,831     4,165,082     3,841,498  
 
Other income (expense)
Interest income 8,017 9,203 25,000 40,005
Interest expense - - - -

Miscellaneous income

- 4,694 - 35,488
Gain on currency exchange 7,340 (980 ) 35,477 96,662
Total other income (expense)   15,357     12,917     60,477     172,155  
Income from continuing operations before
provision for income taxes 2,089,327 1,545,748 4,225,559 4,013,653
Provision for income taxes   (781,778 )   (552,518 )   (1,422,991 )   (1,371,862 )
Net Income $ 1,307,549   $ 993,230   $ 2,802,568   $ 2,641,791  
 
Earnings per share
Basic $ 0.08 $ 0.06 $ 0.17 $ 0.17
Diluted $ 0.08 $ 0.06 $ 0.17 $ 0.16
 
Weighted-average common shares outstanding
Basic 16,193,976 16,024,467 16,117,198 15,984,819
Diluted 16,455,078 16,335,608 16,361,695 16,307,618
 
 

SIMULATIONS PLUS, INC.

CONDENSED BALANCE SHEETS

at May 31, 2014 (Unaudited) and August 31, 2013 (Audited)

 
      (Unaudited)   (Audited)
May 31, August 31,
2014 2013
ASSETS
Current assets
Cash and cash equivalents $ 7,757,972 $ 10,179,298
Income tax refund receivable/Prepaid 946,518 301,573
Accounts receivable, net of allowance for doubtful accounts of $0 3,219,743 1,910,615
Contracts receivable 124,270 203,913
Prepaid expenses and other current assets 119,180 192,173
Deferred income taxes   217,655   184,258
Total current assets 12,385,338 12,971,830
Long-term assets
Capitalized computer software development costs,
net of accumulated amortization of $6,385,815 and $5,443,703 3,358,632 2,891,169
Property and equipment, net 103,596 117,987
Intellectual property, net of accumulated amortization of $41,875 and $11,250 6,033,125 63,750
Other assets   18,445   18,445
Total assets $ 21,899,136 $ 16,063,181
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 177,356 $ 146,011
Accrued payroll and other expenses 349,464 311,209
Accrued bonuses to officer 90,000 60,000
Other Current Liabilities 19,859 19,859
Current portion - Contract payable 750,000 -
Deferred revenue   234,671   89,227
Total current liabilities 1,621,350 626,306
 
Long-term liabilities
Deferred income taxes 2,529,371 1,146,389
Payments due under Contract payable 1,750,000 -
Other long-term liabilities   33,099   47,993
Total liabilities 5,933,820 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
16,335,804 and 16,030,894 shares issued and outstanding 4,807 4,502
Additional paid-in capital 6,021,432 4,842,794
Retained earnings   9,939,077   9,395,197
 
Total shareholders' equity   15,965,316   14,242,493
 
Total liabilities and shareholders' equity $ 21,899,136 $ 16,063,181

 

 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...