Simulations Plus Reports Results for First Fiscal Quarter of Fiscal Year 2004

Division: PBPK

Simulations Plus, Inc. (OTCBB: ), the leading provider of ADME absorption simulation and neural net structure-to-property prediction software for pharmaceutical discovery and development, today reported its audited results for the fiscal first quarter ended November 30, 2003.

Momoko Beran, chief financial officer of Simulations Plus, stated, “Consolidated net sales set a new first quarter record, increasing $61,000, or 5.7%, to $1,139,000 in the first fiscal quarter of 2004 from $1,078,000 in the first fiscal quarter of 2003. Simulations Plus, Inc.’s sales from pharmaceutical and educational software increased approximately $136,000, or 26.8%; however, our Words+, Inc. subsidiary’s sales decreased approximately $75,000, or 13.1%, for the quarter.

Ms. Beran continued, “In spite of increases in health insurance, investor relations expenses, and salaries and wages of about $103,000 and the lower sales in the Words+ business compared to the same period in fiscal year 2003, earnings for the first quarter were $47,000, or $0.01 per fully diluted share (based on 4,128,000 shares), as compared to $131,000, or $0.04 per fully diluted share (based on 3,431,000 shares), for the same period in fiscal year 2003. Shareholder equity at the end of the first quarter was $3,363,000, up 274% from $899,000 for the same period in fiscal year 2003. A portion of this increase was due to a net income tax benefit of $1,291,000 arising from the release of the valuation allowance in anticipation of full utilization of its net operating loss carry forward and certain tax credits. Subsequent to the end of the first quarter, the acquisition of the Say-it! SAM technologies in December 2003 added another $162,750 to shareholders’ equity.”

Walt Woltosz, chairman and chief executive officer, said, “The excellent news on the pharmaceutical software side was offset by the lower sales on the Words+ side of the business. We have taken steps through our recent acquisition of the Say-it! SAM technology and the new Say-it! SAM augmentative communication product, the recent introduction of our new U-Control III remote control system, and recently released improvements to our core Words+ software products to improve the Words+ business this fiscal year. Our pharmaceutical software and services business continues to grow at a very satisfying pace, and we continue to aggressively pursue additional large multi-year license agreements with major global pharmaceutical organizations.”

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