Simulations Plus Reports First Quarter FY2006 Financial Results
Simulations Plus, Inc. (AMEX: SLP), a leading provider of ADMET absorption simulation and neural net structure-to-property prediction software for pharmaceutical discovery and development, today reported its financial results for the first fiscal quarter of its 2006 fiscal year ended November 30, 2005.
Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: “Consolidated revenues for the first quarter were $819,000, a decrease of 23% from $1,066,000 in the first quarter of fiscal year 2005. Revenues from pharmaceutical software and services were $199,000, a decrease of 62% from $524,000 in the first quarter of fiscal year 2005. This was primarily due to one $300,000 order that was received shortly after the close of the quarter, while last year it was received just before the end of the quarter. Revenues for our Words+ subsidiary increased 14% to $620,000 from $543,000 in the first quarter of fiscal year 2005. The consolidated loss for the quarter was $199,000, or $0.05 per diluted share, as compared to earnings of $23,000, or $0.01 per diluted share for the first quarter of fiscal year 2005. SG&A decreased by 0.5% to $629,000 in the first quarter of fiscal 2006, compared to $632,000 in the first quarter of fiscal year 2005. Shareholders’ equity increased 3.9% to $4,666,000, as compared to $4,493,000 for the first quarter of fiscal year 2005.”
Ms. Beran continued: “We have begun receiving payments from the purchased accounts receivable that were part of the acquired assets from Bioreason. These payments contribute to cash flow, but as purchased assets they are not accounted as revenues, nor will they contribute to reported earnings. Cash remains strong, with our cash position remaining over $930,000, even after we used almost $1 million in cash over the last 6 months, primarily for our acquisitions of assets of Sage Informatics, LLC, and Bioreason, Inc.”
Walt Woltosz, chairman and chief executive officer of Simulations Plus, noted: “The Company remains financially strong, with no debt and a good cash position. As we announced in our press release of December 27, 2005, we received a large order in December for the renewal of global software licenses for one of our biggest customers, while this customer’s order was received in the first quarter last year. If this order had been received and the software had been unlocked by November 30, we would have shown an increase in both revenues and earnings over the previous fiscal year’s first quarter. As it is, the revenues from this order will be recognized in the second quarter. Our progress on the new version of ClassPharmer is excellent. We have already burned a master distribution CD for a beta release that we’ll be providing to current customers for evaluation in February. We expect existing customers will be quite impressed with the dramatic increase in speed and the friendlier user interface.”
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