|By Business Wire||
|January 9, 2014 08:03 AM EST||
Simulations Plus, Inc. (NASDAQ:SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported financial results for its first quarter of fiscal year 2014 ended November 30, 2013 (1QFY14).
1QFY14 highlights compared with 1QFY13:
- Net sales increased 15.3% to first-quarter record $2.641 million from $2.291 million
- Gross profit increased 15.2% to $2.193 million from $1.903 million
- SG&A increased 15.0% to $1.071 million from $0.931 million
- R&D expenditures decreased 10.1% to $162,000 from $180,000
- Income before taxes increased 10.8% to $0.992 million from $0.896 million
- Net income increased 16.7% to $685,000 from $587,000
- Diluted earnings per share increased 16.7% to $0.042 from $0.036
Mr. John Kneisel, chief financial officer of Simulations Plus, said: “Increased Selling, General and Administrative (SG&A) expenses for 1QFY14 were due to increased commissions on sales to dealers in Asia, increases in salaries and wages, and increases in costs related to trade shows and travel, all of which outweighed decreases in M&A consultant fees and advertising costs. R&D expenses decreased due to increased scientific staff time spent on capitalized software development activities. A lower income tax rate for 1QFY14 resulted in a provision for income taxes of $307,000, nearly the same dollar amount as for 1QFY13 ($309,000). Cash increased to $10.55 million on November 30, 2013, compared to $10.18 million on August 31, 2013, after distributing $643,000 in dividends during 1QFY14. Shareholders’ equity was $14.35 million at the end of 1QFY14, compared to $14.24 million on August 31, 2013.”
Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Fiscal year 2014 is off to a very good start with this record first quarter. Revenues and earnings are both up nicely in spite of the fact that we completed all of our recent funded collaborations prior to the quarter. Our software development activities on the next releases of ADMET Predictor™, GastroPlus™, and MedChem Studio™ are proceeding well, and we hope to release our new MembranePlus™ software product in the second calendar quarter of this year. We continue to interview candidates to expand the technical team and we continue to look for opportunities to grow the business via acquisition. Our new NCE (new chemical entity) project is proceeding well with the synthesis of a number of molecules just completed and we hope to select the contractor for testing these molecules to determine their activities against their COX-2 (cyclooxygenase-2) and COX-1 enzyme targets in the next few days.”
The Company has announced an investor conference call that will be webcast live at 1:15 PST/4:15 PM EST today, Thursday, January 9, 2014, which may be accessed by first registering at the following website: https://www2.gotomeeting.com/register/132664954. 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 646-307-1721, and enter access code 176-825-537.
About Simulations Plus, Inc.
Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation and modeling software, which is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, agrochemical, and food industry companies worldwide. Simulations Plus, Inc., is headquartered in Southern California and trades on the NASDAQ Capital Market under the symbol “SLP.” 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. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so 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, our ability to identify and close acquisitions on terms favorable to the Company, 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.
CONDENSED BALANCE SHEETS
|November 30,||August 31,|
|Cash and cash equivalents||$||10,554,707||$||10,179,298|
|Prepaid income taxes||64,798||301,573|
|Accounts receivable, net of allowance for doubtful accounts of $0||1,866,445||1,910,615|
|Prepaid expenses and other current assets||173,075||192,173|
|Deferred income taxes||188,126||184,258|
|Total current assets||13,136,191||12,971,830|
|Capitalized computer software development costs,|
|net of accumulated amortization of $5,993,404 and $5,801,578||3,072,547||2,891,169|
|Property and equipment, net||115,927||117,987|
|Intellectual property, net of accumulated amortization of $13,125 and $11,250||61,875||63,750|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accrued payroll and other expenses||337,603||311,209|
|Accrued bonuses to officer||30,000||60,000|
|Other current liabilities||19,859||19,859|
|Total current liabilities||791,125||626,306|
|Deferred income taxes||1,220,435||1,146,389|
|Other long-term liabilities||43,028||47,993|
|Commitments and contingencies|
|Preferred stock, $0.001 par value|
|10,000,000 shares authorized|
|no shares issued and outstanding||-||-|
|Common stock, $0.001 par value|
|50,000,000 shares authorized|
|16,073,894 and 16,030,894 shares issued and outstanding||4,545||4,502|
|Additional paid-in capital||4,908,456||4,842,794|
|Total shareholders' equity||14,350,397||14,242,493|
|Total liabilities and shareholders' equity||$||16,404,985||$||16,063,181|
SIMULATIONS PLUS, INC.
CONDENSED STATEMENTS OF OPERATIONS
For the three months ended
|Cost of sales||448,420||386,870|
|Selling, general, and administrative||1,071,091||931,060|
|Research and development||162,116||180,335|
|Total operating expenses||1,233,207||1,111,395|
|Income from operations||959,373||791,829|
|Other income (expense)|
|Gain on currency exchange||23,709||74,654|
|Total other income (expense)||32,735||103,786|
Income from continuing operations before provision for income taxes
|Provision for income taxes||(306,953||)||(308,629||)|
|Earnings per share|
|Weighted-average common shares outstanding|
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