Simulations Plus, Inc. (AMEX: SLP), a leading provider of software for pharmaceutical discovery and development, today announced that a large pharmaceutical company has signed a second multi-year global software license agreement.
Ron Creeley, vice president of marketing and sales for Simulations Plus, said: We’re pleased to announce another multi-year license agreement for Simulations Plus software. This customer signed a two-year license for our GastroPlus software at each of its research sites two years ago, and now has signed another two-year license. This companys scientists have been among our longest-standing users, beginning in 1998, and have provided numerous suggestions for added functionalities and improvements over the years. Our software is now a necessary component of this clients ongoing research methodologies and its use continues growing within the companys community of world-class scientists. Because of this, this new contract is larger than before in both number of software licenses and sales. I’d truly like to be able to identify this pharmaceutical giant for the public but, like most of our clients, they want their use of our software in their research to remain confidential as they consider it a competitive advantage.
Momoko Beran, chief financial officer for Simulations Plus, added, As we announced earlier, multi-year licenses are now being authorized for operation 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. Even so, the contribution of this license to the current quarter is significant.
The Companys third fiscal quarter ends on May 31.