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Apr 10, 2013
  |  Press Release

Simulations Plus Reports Second Quarter and First Six Months FY2013 Financial Results

Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported financial results for its second quarter of fiscal year 2013 ended February 28, 2013 (2QFY13).

2QFY13 highlights compared with 2QFY12:

  • Net sales increased 11.8% to new record for any quarter of $3.118 million from $2.789 million
  • This was the Company’s 22nd consecutive profitable quarter, and the 44th of the last 46 quarters
  • Gross profit increased 9.5% to $2.619 million from $2.393 million
  • SG&A decreased 10.6% to $0.855 million from $0.956 million
    • As a percent of revenues, SG&A decreased to 27.4% from 34.3%
  • R&D expense decreased 6.4% to $248,000 from $265,000
  • Income before taxes from continuing operations increased 24.8% to $1.572 million from $1.260 million
  • Provision for income taxes increased 21.3% to $0.511 million from $0.421 million
  • Net income from continuing operations increased 26.6% to $1.062 million from $0.839 million
  • Diluted earnings per share increased to $0.06 from $0.05 in 2QFY12
  • Cash at the end of the second fiscal quarter was $9.75 million after dividend distributions
    • Approximately $796,000 was distributed in November 2012
    • Approximately $2,243,000 was distributed in December 2012
    • Cash as of April 5 was $10.4 million
  • Shareholders’ equity at the end of the quarter was $13.921 million
    • This is a decrease of $1.505 million from the end of 2QFY12
    • This decrease was after dividend distributions of approximately $5.4 million during calendar 2012

For the first six months of fiscal year 2013 (6moFY13) compared to the first six months of FY2012 (6moFY12):

  • Net sales increased 7.4% to a new midyear record $5.408 million from $5.037 million
  • Gross profit increased 5.5% to $4.523 million from $4.288 million
  • SG&A increased 7.8% to $1.786 million from $1.656 million
  • As a percent of revenues, SG&A increased to 33.0% from 32.9%
  • R&D expenditures decreased 17.2% to $428,000 from $517,000
    • Completion of the Company’s malaria NCE project reduced R&D expenditures in the current year
  • Income before taxes increased 6.2% to $2.468 million from $2.323 million
  • Provision for income taxes increased 12.3% to $0.819 million from $0.729 million
  • Net income from continuing operations increased 3.4% to $1.649 million from $1.594 million
  • For 6moFY13, earnings per share from continuing operations was the same at $0.10 per share.
  • Including the $0.216 million net proceeds from the sale of the former Words+ subsidiary last year, net income for 6moFY12 was $1.810 million
  • Including the $0.216 million net proceeds from the sale of the former Words+ subsidiary last year, total diluted earnings per share for 6moFY12 was $0.11

Ms. Momoko Beran, chief financial officer of Simulations Plus, said: “We continued to exhibit the strong leverage in our business model as each dollar of incremental revenues added approximately $0.80 to operating profit. Record revenue up nearly 12% for the quarter delivered a 26.5% improvement in net income despite an increase in tax rates. After distributing cash dividends of over $5 million to our shareholders during calendar 2012, our cash position remains strong, and we continue to have no debt.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “The second quarter continues our trend of new quarterly records each fiscal quarter, and this quarter is also a record for any quarter. We added 18 new customers, had 93% renewals, and increased our collaboration funding by over $111,000, while consulting revenues decreased by 27%. Results from two recent GastroPlus™ simulation contract studies were submitted to U.S. and European regulatory agencies in support of our customers, making a total of four such submittals in recent months. The acceptance of simulation results in support of regulatory applications has been increasing and we believe is a leading indicator for increased use of simulation and modeling software in the pharmaceutical industry to reduce the time and cost of unnecessary clinical trials.”

The Company has announced an investor conference call that will be webcast live at 1:30 PDT/4:30 PM EDT today, Wednesday, April 10, 2013, which may be accessed by registering here. Upon registering, you will receive a confirmation e-mail with a unique link and instructions for joining the call. Please dial in five to ten minutes prior to the scheduled start time. For listen-only mode, you may dial 646-307-1720, and enter access code 951-402-096.

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