Simulations Plus Reports Preliminary Revenues for Third Fiscal Quarter of FY2011

Division: Simulations Plus

Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of consulting services and software for pharmaceutical discovery and development, today released preliminary revenues for its third fiscal quarter of fiscal year 2011, ended May 31, 2011 (3QFY11).

Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: “In accordance with our policy to release timely financial information to our shareholders, we are releasing preliminary revenues for 3QFY11. Net income will not be known until income taxes have been determined and our auditors review our Quarterly Report on Form 10Q for 3QFY11. We expect to file our 10Q with the U.S. Securities and Exchange Commission on or before the July 15, 2011 deadline.”

Preliminary results for the quarter:

  • This was the Company’s 15th consecutive profitable quarter
  • Preliminary revenues for the pharmaceutical software and services portion of the business increased to $2.643 million, compared to $2.325 million in 3QFY10
  • This represents an increase of 13.7% over 3QFY10
  • Approximately 14.3% of 3QFY11 pharmaceutical software and services business was from new customers
  • Preliminary revenues for the Words+ subsidiary were $0.800 million compared to $0.794 million in 3QFY10, an increase of 0.8%
  • Consolidated preliminary revenues for 3QFY11 were $3.442 million compared to $3.119 million in 3QFY10
  • This represents an increase of 10.4% compared to 3QFY10
  • Cash at the end of the quarter was $9.7 million

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “We continue to expand our customer base, with over 30 new software customers added so far this fiscal year, including two in China. The increase in adoption of simulation and modeling software by smaller companies demonstrates the trend we’ve been seeing in recent years that the market for simulation and modeling software has potential well beyond the giants of the industry who were the early adopters. We believe the total potential market may be on the order of 1,000-2,000 companies in the pharmaceutical industry alone. In addition to our new software customers, we’ve also added consulting customers. We offer world-class expertise in drug absorption, pharmacokinetics, and pharmacodynamics to our consulting customers, who range from top 5 pharma companies to numerous smaller companies worldwide. We’ve been steadily interviewing and hiring to expand our Life Sciences staff, with one new Ph.D. starting yesterday and another starting August 1. We will continue this expansion for the foreseeable future in order to address a number of market opportunities we’ve identified for organic growth.”