Simulations Plus Receives Large Multi-Year Pharmaceutical Software License
Simulations Plus, Inc. (AMEX:SLP), a leading provider of software for pharmaceutical discovery and development, today announced that F. Hoffmann-LaRoche (“Roche”, NYSE:RHHBY) has renewed and expanded its global licenses for Simulations Plus software for another two years.
Ron Creeley, vice president of marketing and sales for Simulations Plus, said: “Roche’s scientists have been among our longest-standing users and have provided numerous suggestions for improving especially GastroPlus over the years. Our software has become a significant component of Roche’s research methodologies and its use continues growing within the company’s community of world-class scientists. Because of this, this new contract is larger than before in both number of software licenses and sales revenues per year.”
Momoko Beran, chief financial officer for Simulations Plus, added: “As we announced earlier, multi-year licenses are now being unlocked, and the revenues are being recognized, one year at a time to avoid the undulating revenues and earnings that we experienced in the past when we recognized revenues from multi-year licenses up-front. This new license is a renewal of a previous multi-year license for which the revenues had been booked up front, so no revenues were booked last year for this customer. That means that we expect the second quarter for this fiscal year will be improved over last year’s record second quarter by the additional revenues from this order.”
The Company’s second fiscal quarter will end on February 28.