LANCASTER, Calif.--(BUSINESS WIRE)--Simulations Plus, Inc. (NASDAQ: SLP - News), a leading provider of software for pharmaceutical discovery and development, today reported its financial results for its 2009 fiscal year (FY09) ended August 31, 2009.

Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: “Fourth quarter fiscal year 2009 (4Q09) consolidated revenues were $1,840,000, an increase of 0.2% or $3,600 from 4Q08. Consolidated revenues for the entire fiscal year 2009 (FY09) increased 2.0% to $9,143,000 from $8,968,000 in fiscal year 2008 (FY08). For the entire fiscal year, revenues from pharmaceutical software and services were up 4.1%, to $6,301,000 from $6,055,000 in FY08. Revenues for our Words+ subsidiary for FY09 decreased 2.4% to $2,842,000 from $2,913,000 in FY08. SG&A increased by approximately 5.3% to $3,896,000 for FY08, compared to $3,699,000 for FY08, due to increases in selling expenses such as commissions and trade shows, recruiting expenses, legal and accounting fees, and salary increases along with payroll-related expenses such as health insurance, payroll taxes, and 401(k) matching contributions.

“Net income for FY09 was $1,412,000 or $0.088 per basic share and $0.082 per fully diluted share, a decrease of 18.2% from $1,726,000, or $0.095 per fully diluted share for FY08. The number of fully diluted shares decreased 5.3% from 18,141,287 in FY08 to 17,187,547 in FY09, primarily as a result of our share repurchase program. Shareholders’ equity at the end of FY09 increased 6.6% to $10,571,000, as compared to $9,915,000 at the end of FY08. Cash and equivalents at the end of the fiscal year were up over $1.58 million or 26.9%, to $7.47 million, compared to $5.89 million at the end of FY08, in spite of our spending over $1 million for share repurchases.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “This has been a challenging year for businesses around the globe; Simulations Plus, however, continues to grow and generate earnings and cash. The Words+ subsidiary continues to struggle with collections of old accounts receivable, but we have recently completed the implementation of a new software package to electronically process and track claims that we believe will improve our collection ability going forward. The pharmaceutical software and services is in an enviable position in the industry with our independently rated best-in-class software offerings. The demand for our consulting service has grown rapidly as well. A year ago we might have had one or two consulting contracts underway whereas now we have as many as six contracts either in progress or responding to proposals. Our expertise with GastroPlus is clearly well-recognized and in demand. Our life sciences team continues to grow with highly qualified new additions to the team, and more expected in the near future. These talented scientists and engineers will not only assist with ongoing projects and contract studies, they will give us the manpower needed to initiate new projects that we’ve planned for some time but have been proceeding slowly because of the demand for staff time to meet customer requests. We’re seeing results from our aggressive marketing and sales push that we began with last spring’s conference schedule. In spite of the disastrous global economy that existed for the entire fiscal year, we achieved slight growth and sustained profitability yet again – something that not many companies can say for that time period.”


About Simulations Plus, Inc.

Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation software, which is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies worldwide. We have two other businesses that are based on our proprietary technologies: a wholly owned subsidiary, Words+, Inc., which provides assistive technologies to persons with disabilities; and an educational software series for science students in middle and high schools known as FutureLab™. For more information, visit our Web site at www.simulations-plus.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 – With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the Securities and Exchange Commission.



Simulations Plus, Inc. and Subsidiary

Consolidated Balance Sheets

For the years ended

ASSETS

August 31,

2009

2008

Current assets
Cash and cash equivalents $ 7,473,485 $ 5,889,601
Accounts receivable, net of allowance for doubtful accounts
and estimated contractual discounts of $447,073 and $319,609 1,888,904 2,105,074
Contracts receivable 79,565 -
Inventory 325,926 342,051
Prepaid expenses and other current assets 158,738 195,330
Deferred income taxes 338,516 318,400
Total current assets 10,265,134 8,850,456
Investment - 750,000
Capitalized computer software development costs,
net of accumulated amortization of $3,843,743 and $3,324,328 1,942,893 1,788,756
Property and equipment, net 53,220 102,633
Customer relationships, net of accumulated amortization of $104,728 and $85,029 23,314 43,013
Other assets 18,445 18,445
Total assets $ 12,303,006 $ 11,553,303
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 199,218 $ 181,230
Accrued payroll and other expenses 552,431 537,363
Accrued bonuses to officer 60,000 60,000
Accrued warranty and service costs 43,236 33,899
Deferred revenue 82,190 83,333
Total current liabilities 937,075 895,825
Long-term liabilities
Deferred income taxes 795,140 742,400
Total liabilities 1,732,215 1,638,225
Commitments and contingencies
Shareholders' equity
Preferred stock, $0.001 par value
10,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.001 par value
50,000,000 shares authorized
15,700,382 and 16,297,400 shares issued and outstanding 4,172 4,769
Additional paid-in capital 5,572,411 6,328,185
Retained earnings 4,994,208 3,582,124
Total shareholders' equity 10,570,791 9,915,078
Total liabilities and shareholders' equity $ 12,303,006 $ 11,553,303

Simulations Plus, Inc. and Subsidiary

Consolidated Statements of Operations

For the years ended

August 31,

2009

2008

Net sales $ 9,143,271 $ 8,967,970
Cost of sales 2,321,592 2,100,055
Gross profit 6,821,679 6,867,915
Operating expenses
Selling, general, and administrative 3,895,995 3,699,273
Research and development 1,113,855 990,491
Total operating expenses 5,009,850 4,689,764
Income from operations 1,811,829 2,178,151
Other income (expense)
Interest income 93,874 185,399
Miscellaneous income 607 36
Gain on currency exchange 120,350 82,659
Interest expense - (68 )
Total other income (expense) 214,831 268,026
Income before income taxes 2,026,660 2,446,177
Provision for income taxes
Deferred income taxes (32,628 ) (437,400 )
Current Income taxes (581,948 ) (283,208 )
Net income $ 1,412,084 $ 1,725,569
Basic earnings per share $ 0.09 $ 0.11
Diluted earnings per share $ 0.08 $ 0.10
Weighted-average common shares outstanding
Basic 16,126,471 16,133,822
Diluted 17,187,547 18,141,287


For further information:
Simulations Plus, Inc.
42505 10th Street West
Lancaster, CA
93534-7059 USA
www.simulations-plus.com
CONTACT: investor relations:
Contact: Renee Bouche