LANCASTER, CA, December 27, 2005 - Simulations Plus, Inc. (AMEX: SLP), a leading provider of ADMET absorption simulation and neural net structure-to-property prediction software for pharmaceutical discovery and development, today reported its financial results for the first fiscal quarter of its 2006 fiscal year ended November 30, 2005.
Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: "Consolidated revenues for the first quarter were $819,000, a decrease of 23% from $1,066,000 in the first quarter of fiscal year 2005. Revenues from pharmaceutical software and services were $199,000, a decrease of 62% from $524,000 in the first quarter of fiscal year 2005. This was primarily due to one $300,000 order that was received shortly after the close of the quarter, while last year it was received just before the end of the quarter. Revenues for our Words+ subsidiary increased 14% to $620,000 from $543,000 in the first quarter of fiscal year 2005. The consolidated loss for the quarter was $199,000, or $0.05 per diluted share, as compared to earnings of $23,000, or $0.01 per diluted share for the first quarter of fiscal year 2005. SG&A decreased by 0.5% to $629,000 in the first quarter of fiscal 2006, compared to $632,000 in the first quarter of fiscal year 2005. Shareholders' equity increased 3.9% to $4,666,000, as compared to $4,493,000 for the first quarter of fiscal year 2005."
Ms. Beran continued: "We have begun receiving payments from the purchased accounts receivable that were part of the acquired assets from Bioreason. These payments contribute to cash flow, but as purchased assets they are not accounted as revenues, nor will they contribute to reported earnings. Cash remains strong, with our cash position remaining over $930,000, even after we used almost $1 million in cash over the last 6 months, primarily for our acquisitions of assets of Sage Informatics, LLC, and Bioreason, Inc."
Walt Woltosz, chairman and chief executive officer of Simulations Plus, noted: "The Company remains financially strong, with no debt and a good cash position. As we announced in our press release of December 27, 2005, we received a large order in December for the renewal of global software licenses for one of our biggest customers, while this customer's order was received in the first quarter last year. If this order had been received and the software had been unlocked by November 30, we would have shown an increase in both revenues and earnings over the previous fiscal year's first quarter. As it is, the revenues from this order will be recognized in the second quarter. Our progress on the new version of ClassPharmer is excellent. We have already burned a master distribution CD for a beta release that we'll be providing to current customers for evaluation in February. We expect existing customers will be quite impressed with the dramatic increase in speed and the friendlier user interface."
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. The Company’s Words+ subsidiary produces assistive technology and communication devices for persons with disabilities. The Company also produces a line of educational simulation software under the umbrella name FutureLab
™, which is based on its proprietary software technologies. Simulations Plus, Inc., is headquartered in Southern California. For more information, visit our Web sites at www.simulations-plus.com and www.words-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. The actual future results of the Company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: the ability of the Company to continue to book revenues and earnings in accordance with existing accounting standards, the ability of the Company to maintain its competitive advantage, the general economics of the disability and pharmaceutical industries, the ability of the Company to attract and maintain sufficient scientific and technical staff to sustain its R&D and customer support functions, and a sustainable market. Further information on the Company’s risk factors is contained in the Company’s quarterly and annual reports as filed with the Securities and Exchange Commission.
SIMULATIONS PLUS, INC. AND SUBSIDIARY
Consolidated Balance Sheet
November 30, 2005
(Unaudited)
SIMULATIONS PLUS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended at November 30,
(Unaudited)
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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