Simulations Plus Announces Large Consulting Contract

Keywords: investor relations
Division: PBPK

Simulations Plus, Inc. (AMEX: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, announced today that it has signed a new, multi-year consulting contract with a top ten pharmaceutical company that will significantly fund the further development of its flagship GastroPlus(™) software program.

Momoko Beran, chief financial officer for Simulations Plus, stated: “Terms of the consulting contract are confidential, but the value of this contract is the equivalent of some of our larger software licenses. We will recognize the revenues for this effort on a quarterly basis as we earn the revenues. Thus, it will not impact the fiscal year that ends today, but we expect it to add both revenues and earnings over the next two years.”

Ms. Beran added: “Regarding the current fiscal year ending today, the guidance we provided in our December 13, 2005, conference call was a good estimate of the revenues we achieved. In keeping with our practice of not providing preliminary figures, I will wait until we complete the 10K so we can provide finalized revenues and earnings, but suffice it to say for now that this was an outstanding fourth quarter and fiscal year. I would also like to point out that the recent announcement regarding acceleration of options has no effect on earnings per share as all of those options were already counted in fully diluted earnings.”