Click here to close now.




















Welcome!

Microsoft Cloud Authors: Liz McMillan, Greg O'Connor, Aleksei Gavrilenko, Elizabeth White, Pat Romanski

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 Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.