Simulations Plus Reports FY2009 Financial Results

Division: PBPK

Simulations Plus, Inc. (NASDAQ: SLP – News), a leading provider of software for pharmaceutical discovery and development, today reported its financial results for its 2009 fiscal year (FY09) ended August 31, 2009.

Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: “Fourth quarter fiscal year 2009 (4Q09) consolidated revenues were $1,840,000, an increase of 0.2% or $3,600 from 4Q08. Consolidated revenues for the entire fiscal year 2009 (FY09) increased 2.0% to $9,143,000 from $8,968,000 in fiscal year 2008 (FY08). For the entire fiscal year, revenues from pharmaceutical software and services were up 4.1%, to $6,301,000 from $6,055,000 in FY08. Revenues for our Words+ subsidiary for FY09 decreased 2.4% to $2,842,000 from $2,913,000 in FY08. SG&A increased by approximately 5.3% to $3,896,000 for FY08, compared to $3,699,000 for FY08, due to increases in selling expenses such as commissions and trade shows, recruiting expenses, legal and accounting fees, and salary increases along with payroll-related expenses such as health insurance, payroll taxes, and 401(k) matching contributions.

“Net income for FY09 was $1,412,000 or $0.088 per basic share and $0.082 per fully diluted share, a decrease of 18.2% from $1,726,000, or $0.095 per fully diluted share for FY08. The number of fully diluted shares decreased 5.3% from 18,141,287 in FY08 to 17,187,547 in FY09, primarily as a result of our share repurchase program. Shareholders’ equity at the end of FY09 increased 6.6% to $10,571,000, as compared to $9,915,000 at the end of FY08. Cash and equivalents at the end of the fiscal year were up over $1.58 million or 26.9%, to $7.47 million, compared to $5.89 million at the end of FY08, in spite of our spending over $1 million for share repurchases.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “This has been a challenging year for businesses around the globe; Simulations Plus, however, continues to grow and generate earnings and cash. The Words+ subsidiary continues to struggle with collections of old accounts receivable, but we have recently completed the implementation of a new software package to electronically process and track claims that we believe will improve our collection ability going forward. The pharmaceutical software and services is in an enviable position in the industry with our independently rated best-in-class software offerings. The demand for our consulting service has grown rapidly as well. A year ago we might have had one or two consulting contracts underway whereas now we have as many as six contracts either in progress or responding to proposals. Our expertise with GastroPlus is clearly well-recognized and in demand. Our life sciences team continues to grow with highly qualified new additions to the team, and more expected in the near future. These talented scientists and engineers will not only assist with ongoing projects and contract studies, they will give us the manpower needed to initiate new projects that we’ve planned for some time but have been proceeding slowly because of the demand for staff time to meet customer requests. We’re seeing results from our aggressive marketing and sales push that we began with last spring’s conference schedule. In spite of the disastrous global economy that existed for the entire fiscal year, we achieved slight growth and sustained profitability yet again – something that not many companies can say for that time period.”

For complete balance sheets, click here.