Simulations Plus Reports Third Quarter FY2011 Financial Results and Announces Investor Conference Call

Division: Simulations Plus

3QFY11 highlights compared with 3QFY10:

  • This was the Company’s 15th consecutive profitable quarter, and the 37th of the last 39 quarters
  • Consolidated revenues up 10.3% to record $3.44 million from $3.12 million
  • Pharmaceutical software and services revenues up 13.5% to $2.64 million from $2.32 million
  • Sales to new customers increased over 230% and accounted for 15% of total pharmaceutical revenues
  • Words+ subsidiary revenues up 0.7% to $799,000 from $794,000
  • Gross profit up 8.4% to $2.62 million from $2.42 million
  • SG&A decreased 4.8% to $1.06 million from $1.12 million
  • R&D expense increased 1.6% to $238,000 from $234,000
  • Income before income taxes up 23.9% to $1.38 million from $1.11 million
  • Net income up 42.4% to $1.05 million from $0.74 million
  • Diluted earnings per share up 49.4% to $0.07 from $0.04
  • Shareholders’ equity grew to $13.8 million from $12.8 million

First nine months FY11 (9moFY11) highlights compared with 9moFY10:

  • Consolidated revenues increased 12.9% to record $9.6 million from $8.5 million
  • Nearly 50 new customers have been added to our recurring revenue model in the first nine months
  • Pharmaceutical software and services revenues up 16.3% to $7.3 million from $6.3 million
  • Words+ subsidiary revenues up 3.1% to $2.3 million from $2.2 million
  • Gross profit up 12.2% to $7.3 million from $6.5 million
  • SG&A decreased 3.3% to $3.1 million from $3.2 million
  • R&D expense decreased 6.3% to $701,000 from $748,000
  • Income before income taxes up 31.0% to $3.6 million from $2.7 million
  • Net income up 39.7% to $2.5 million from $1.8 million
  • Diluted earnings per share $0.16, an increase of 43.0% from $0.11

For the trailing twelve months ending May 31, 2011:

  • Consolidated revenues increased 14.6% to $11.8 million from $10.3 million
  • Net earnings increased 44.7% to $2.85 million from $1.97 million
  • Diluted earnings per share increased 44.7% to $0.18 from $0.12

Ms. Momoko Beran, chief financial officer, said: “We’re very pleased to report yet another record quarter with outstanding earnings growth. Revenue for both segments increased, while SG&A, as a percent of revenue, decreased to 30.9% for the third quarter compared to 35.8% of revenue in the third quarter last year. We grew revenues faster than expenses, resulting in significant improvement in net income, and demonstrating our ability to scale our business effectively. Cash at the end of 3QFY11 was $9.9 million compared to $8.6 million at the end of 3QFY10, and $8.8 million at the beginning of the quarter. As we reported earlier, we used just over $2 million of our cash to repurchase shares during the first two quarters of this year. Cash today is $10.96 million.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added, “ This is yet another record quarter for both revenues and earnings. We continue to interview and hire to expand our scientific staff and take on development of new products and services, positioning us to continue creating shareholder value in the future. ”

The Company has announced an earnings conference call for Thursday, July 14, at 1:15 PM PDT/4:15 PM EDT, which can be joined by r egistering at the following website:https://www2.gotomeeting.com/register/247482794/ . 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 215-383-1016 and enter access code 300-755-094.

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