Welcome!

.NET Authors: Lori MacVittie, Yeshim Deniz, Ivan Antsipau, Liz McMillan, Michael Bushong

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
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.