Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of software for pharmaceutical discovery and development, today reported its financial results for its 2010 fiscal year (FY10) and fourth quarter (4Q10) ended August 31, 2010.
Results for the fiscal year FY10:
• Consolidated revenues were $10.71 million
• This represents an increase of 17.2% over $9.14 million in FY09
• Consolidated net income was $2.16 million
• This represents an increase of 52.7% over $1.41 million in FY09
• Revenues for the pharmaceutical software and services sector were up 20.9% to $7.62 million
• Revenues for the Words+ subsidiary were $3.09 million, an increase of 8.8% over FY09
• Net income per fully diluted share was $0.131
• This represents an increase of 58.9% over $0.082 for FY09
• Cash increased to $9.63 million
• This represents an increase of 28.9% from $7.47 million at the end of FY09
• Shareholders’ equity increased to $13.05 million
• This represents an increase of 23.4% from $10.57 million at the end of FY09
Results for the fourth quarter FY10 (4Q10):
• Consolidated revenues were $2.21 million
• This represents an increase of 19.9% over 4Q09
• Consolidated net income for the quarter was $0.345 million
• This represents an increase of 80.8% over $0.191 million in 4Q09
• Revenues for the pharmaceutical software and services sector were up 20.5% to $1.33 million
• Net income for the pharmaceutical software and services sector was up 3.4% to $0.208 million
• Revenues for the Words+ subsidiary were up 19.1% to $0.872 million over 4Q09
• Net income for the Words+ subsidiary was $0.137 million, up from a loss of $10,000 in 4Q09
• Consolidated earnings per fully diluted share were $0.021
• This represents an increase of 89.6% over the $0.011 for 4Q09
Ms. Momoko Beran, chief financial officer for Simulations Plus, said: “We’re very pleased to report these results, completing a fiscal year with every quarter setting a new quarterly record, resulting in a record fiscal year. We continue to experience strong demand for our pharmaceutical business products and services. The introduction of our new EyeProTMeyegaze system at the end of the third quarter contributed to greatly improved results in the fourth quarter for our Words+ subsidiary, earning just over $137,000 compared to a loss of $10,000 in last year’s fourth quarter. We have also seen considerable improvement in collection of aged accounts receivable for the Words+ subsidiary since we implemented new electronic billing and tracking software in October 2009, resulting in a reduced allowance for bad debts compared to previous years. We are using some of our cash to repurchase and retire shares, resulting in lower dilution and better per-share metrics for our shareholders. So far this year, we have repurchased over 700,000 shares of the one million authorized by the board of directors from February 15, 2010 to February 15, 2011. It is our intention to continue to repurchase at times and prices deemed prudent by management; however, we do not announce when we may do so nor at what prices.”
Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Our sustained growth and profitability in times that many companies are cutting back is an indication that we’re providing valuable products and services to our customers in both business segments. We believe the sustainability of our business model is evidenced by the fact that over 70% of our FY10 pharmaceutical revenues were for recurring software licenses; revenues from our pharmaceutical consulting, collaboration, and training segment are growing steadily with over 15% of FY10 pharmaceutical revenues coming from these activities; and sales to new customers combined with expanded licenses to existing customers accounted for another approximately 12% of total revenues from the pharmaceutical segment. In the first quarter of FY11, we initiated a new profit center as we conducted our first Advanced GastroPlus Training Workshop, with 18 attendees including four from the FDA, and reviews from the attendees were unanimously positive. In accordance with requests for more timely information from several shareholders, we plan to provide preliminary revenues press releases at the end of each quarter going forward, so our first quarter announcement will be this week.”
Mr. Woltosz continued: “We released three major pharmaceutical software upgrades during the fourth quarter that we believe position our already best-in-class software offerings further ahead of the competition. Our current customers have already received these upgrades, and many of our current customers as well as new companies have requested and received evaluation copies of the new capabilities in ADMET Predictor, GastroPlus, and MedChem Studio. The addition of ocular and pulmonary delivery in GastroPlus, as well as its powerful new Drug-Drug Interaction Module, has attracted worldwide attention and we are optimistic that these new capabilities will result in further growth, along with the expanded capabilities in ADMET Predictor and MedChem Studio. We believe that, because we provide tools that increase productivity in an industry that wastes billions of dollars every year on failed molecules, the need for these tools will only increase going forward. To help communicate this value proposition, we are continuing our aggressive marketing and sales program, attending approximately 15 conferences and scientific meetings per quarter around the world.”