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 2010 ended February 28, 2010 (2QFY10).
2QFY10 highlights compared with 2QFY09:
- Consolidated revenues increased 20.1% to record $2.95 million from $2.46 million
- Pharmaceutical software and services revenues up 25.2% to $2.23 million from $1.78 million
- Words+ subsidiary revenues up 6.6% to $723,000 from $678,000
- R&D expense decreased 11.9% to $252,000 from $286,000
- SG&A increased 5.0% to $1.09 million from $1.04 million
- Gross profit up 22.9% to $2.25 million from $1.83 million
- Income before income taxes up 74.3% to $974,000 from $559,000
- Net income up 74.1% to $641,000 from $368,000
- Diluted earnings per share $0.04, an increase of 79.9% from $0.02
First six months FY10 (6moFY10) highlights compared with 6moFY09:
- Consolidated revenues increased 17.4% to record $5.39 million from $4.59 million
- Pharmaceutical software and services revenues up 23.5% to $3.96 million from $3.21 million
- Words+ subsidiary revenues up 3.2% to $1.43 million from $1.38 million
- R&D expense decreased 7.3% to $513,000 from $554,000
- SG&A increased 7.9% to $2.09 million from $1.94 million
- Gross profit up 19.9% to $4.08 million from $3.40 million
- Income before income taxes up 61.6% to $1.64 million from $1.01 million
- Net income up 57.5% to $1.07 million from $680,000
- Diluted earnings per share $0.06, an increase of 65.5% from $0.04
- Cash increased to $8.64 million from $7.47 million at the beginning of the fiscal year
Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: “These results represent a new record second quarter and first six months for both revenues and earnings. Shareholder equity grew once again, to $11.5 million from $10.6 million at the beginning of the fiscal year. Cash flow remains strong with no debt. We continue seeking accretive acquisitions. We think that the aggressive marketing and sales program we began last year is bearing fruit and gathering momentum as more and more of the pharmaceutical industry adopts simulation and modeling tools to increase productivity. We believe there is a fundamental change underway in how drugs are designed and developed, with greater reliance on computer modeling that keeps getting better in a variety of areas. GastroPlus™ Version 7.0 will be released very soon, adding three very important new capabilities in drug-drug interaction, ocular drug delivery, and nasal/pulmonary drug delivery, expanding our markets and our capabilities within existing customer sites. Coming improvements in ADMET Predictor™, ClassPharmer™, and DDDPlus™, along with the continued strong growth we’ve experienced for our consulting services, gives FY2010 a bright outlook.”
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Simulations Plus, Inc. and Subsidiary |
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Condensed Consolidated Balance Sheets |
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February 28, 2010 (Unaudited) and August 31, 2009 (Audited) |
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| ASSETS | ||||||||||||||
| February 28, 2010 |
August 31, |
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| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 8,641,289 | $ | 7,473,485 | ||||||||||
| Accounts receivable, net of allowance for doubtful accounts | ||||||||||||||
| and estimated contractual discounts of $369,897 and $447,073 | 1,646,851 | 1,888,904 | ||||||||||||
| Contracts receivable | 383,111 | 79,565 | ||||||||||||
| Inventory | 336,177 | 325,926 | ||||||||||||
| Prepaid expenses and other current assets | 110,743 | 158,738 | ||||||||||||
| Deferred income taxes | 329,573 | 338,516 | ||||||||||||
| Total current assets | 11,447,744 | 10,265,134 | ||||||||||||
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Capitalized computer software development costs, |
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| net of accumulated amortization of $4,160,046 and $3,843,743 | 2,082,671 | 1,942,893 | ||||||||||||
| Property and equipment, net | 48,191 | 53,220 | ||||||||||||
| Customer relationships, net of accumulated amortization of $112,332 and $104,728 | 15,709 | 23,314 | ||||||||||||
| Other assets | 18,445 | 18,445 | ||||||||||||
| Total assets | $ | 13,612,760 | $ | 12,303,006 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | $ | 301,637 | $ | 199,218 | ||||||||||
| Accrued payroll and other expenses | 613,921 | 552,431 | ||||||||||||
| Accrued bonuses to officers | 60,000 | 60,000 | ||||||||||||
| Accrued warranty and service costs | 30,670 | 43,236 | ||||||||||||
| Accrued income taxes | 168,438 | – | ||||||||||||
| Deferred revenue | 119,751 | 82,190 | ||||||||||||
| Total current liabilities | 1,294,417 | 937,075 | ||||||||||||
| Long-Term liabilities | ||||||||||||||
| Deferred income taxes | 857,104 | 795,140 | ||||||||||||
| Total liabilities | 2,151,521 | 1,732,215 | ||||||||||||
| 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 | ||||||||||||||
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16,054,176 and 15,700,382 shares issued and outstanding on February 28, 2010 and August 31, 2009, respectively. |
4,526 | 4,172 | ||||||||||||
| Additional paid-in capital | 5,391,840 | 5,572,411 | ||||||||||||
| Retained earnings | 6,064,873 | 4,994,208 | ||||||||||||
| Total shareholders’ equity | 11,461,239 | 10,570,791 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 13,612,760 | $ | 12,303,006 | ||||||||||
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Simulations Plus, Inc. and Subsidiary |
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Condensed Consolidated Statements of Operations |
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For the Three and Six Months Ended February 28, |
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(Unaudited) |
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| Three months ended | Six months ended | |||||||||||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||
| Net sales | $ | 2,949,719 | $ | 2,456,762 | $ | 5,386,771 | $ | 4,590,012 | ||||||||||||||||||||
| Cost of sales | 700,475 | 627,124 | 1,307,364 | 1,187,096 | ||||||||||||||||||||||||
| Gross profit | 2,249,244 | 1,829,638 | 4,079,407 | 3,402,916 | ||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Selling, general, and administrative | 1,088,819 | 1,036,724 | 2,093,092 | 1,940,414 | ||||||||||||||||||||||||
| Research and development | 252,098 | 286,115 | 513,423 | 553,954 | ||||||||||||||||||||||||
| Total operating expenses | 1,340,917 | 1,322,839 | 2,606,515 | 2,494,368 | ||||||||||||||||||||||||
| Income from operations | 908,327 | 506,799 | 1,472,892 | 908,548 | ||||||||||||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||||||
| Interest income | 23,560 | 19,606 | 46,046 | 52,993 | ||||||||||||||||||||||||
| Interest expense | (1 | ) | – | (303 | ) | – | ||||||||||||||||||||||
| Miscellaneous income | – | – | 231 | 43 | ||||||||||||||||||||||||
| Gain on sales of property and equipment | – | – | 1,024 | – | ||||||||||||||||||||||||
| Gain on currency exchange | 41,962 | 32,340 | 115,194 | 50,216 | ||||||||||||||||||||||||
| Total other income (expense) | 65,521 | 51,946 | 162,192 | 103,252 | ||||||||||||||||||||||||
| Income before provision for income taxes | 973,848 | 558,745 | 1,635,084 | 1,011,800 | ||||||||||||||||||||||||
| Provision for income taxes | (332,985 | ) | (190,673 | ) | (564,418 | ) | (332,006 | ) | ||||||||||||||||||||
| Net income | $ | 640,863 | $ | 368,072 | $ | 1,070,666 | $ | 679,794 | ||||||||||||||||||||
| Basic earnings per share | $ | 0.04 | $ | 0.02 | $ | 0.07 | $ | 0.04 | ||||||||||||||||||||
| Diluted earnings per share | $ | 0.04 | $ | 0.02 | $ | 0.06 | $ | 0.04 | ||||||||||||||||||||
| Weighted-average common shares outstanding | ||||||||||||||||||||||||||||
| Basic | 15,826,030 | 16,268,583 | 15,735,400 | 16,309,683 | ||||||||||||||||||||||||
| Diluted | 16,558,423 | 17,108,322 | 16,479,033 | 17,312,242 | ||||||||||||||||||||||||