Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT ON FORM 8-K - Simulations Plus, Inc. | simulations_8k-021811.htm |
| EX-3.1 - CERTIFICATE OF AMENDMENT - Simulations Plus, Inc. | simulations_8k-ex301.htm |
Exhibit 99.1
Annual Shareholders Meeting
February 18, 2011
Simulations Plus, Inc.
• Welcome and Introductions
• Discussion of Voting Issues
• Chairman’s Remarks
• Questions & Answers
• Adjournment of Official Meeting
Agenda
Management & Directors
• Board of Directors:
– Walter S. Woltosz, M.S., M.A.S., Chairman & CEO.
• Co-founder, Words+, Inc. and Simulations Plus, Inc.
– David Z. D’Argenio, Ph.D., Director
• Professor, Biomedical Engineering, USC
• Director, Co-Director, Biological Simulation Resource Center, USC since 1985
– Richard R. Weiss, Ph.D., Director
• Formerly, Deputy Director, Launch Systems, U.S. Department of Defense
• Formerly, Director, Propulsion, USAF Philips Laboratory
– H. Wayne Rosenberger, Director
• Sr. Regional VP of American Security Bank
– Virginia E. Woltosz, B.S., M.B.A., Director and Secretary
• Co-founder, Words+, Inc. and Simulations Plus, Inc.
• Senior Management Team
– Momoko A. Beran, B.S., M.B.A., Chief Financial Officer, CPA qualified
– Michael B. Bolger, Ph.D., Chief Scientist
– Robert Clark, Ph.D., Director, Life Sciences
– John DiBella, M.S., Director, Business Development, Marketing, and Sales
– Jeffrey A. Dahlen, B.S.E.E., President, Words+, Inc. subsidiary
• Registered Independent Auditors
• Rose, Snyder & Jacobs, Encino, CA
• Tax Specialists
• Rabbani, Inc., Los Angeles, CA
• Legal Counsel
• Luce, Forward, Hamilton & Scripps, San Diego, CA
Outside Counsels
Candidates for Board of Directors remain unchanged:
• David Z. D’Argenio, Ph.D.
• Richard R. Weiss, Ph.D.
• H. Wayne Rosenberger
• Virginia E. Woltosz, MBA
• Walter S. Woltosz, MS, MAS
• Outside auditor:
• Rose, Snyder, Jacobs
• Expansion of Board of Directors to minimum of 5 and maximum of 9 members
• There are no other voting issues
• Votes already received by proxy have resulted in all items being passed
overwhelmingly with over ___ % of the number of votes outstanding having
reported, therefore, a vote at this meeting would serve no purpose. All measures
have been approved.
overwhelmingly with over ___ % of the number of votes outstanding having
reported, therefore, a vote at this meeting would serve no purpose. All measures
have been approved.
Discussion of Voting Issues
• Company Overview
• Financial Performance
• Words+, Inc.
• Simulations Plus, Inc.
Chairman’s Remarks
With the exception of historical information, the matters discussed in this
presentation are forward looking statements that involve a number of risks
and uncertainties. The actual 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: continuing demand for
the Company’s products, competitive factors, the Company’s ability to
finance future growth, the Company’s ability to produce and market new
products in a timely fashion, the Company’s ability to continue to attract
and retain skilled personnel, and the Company’s ability to sustain or
improve current levels of productivity. Further information on the
Company’s risk factors is contained in the Company’s quarterly and
annual reports and filed with the Securities and Exchange Commission.
presentation are forward looking statements that involve a number of risks
and uncertainties. The actual 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: continuing demand for
the Company’s products, competitive factors, the Company’s ability to
finance future growth, the Company’s ability to produce and market new
products in a timely fashion, the Company’s ability to continue to attract
and retain skilled personnel, and the Company’s ability to sustain or
improve current levels of productivity. Further information on the
Company’s risk factors is contained in the Company’s quarterly and
annual reports and filed with the Securities and Exchange Commission.
Safe Harbor Statement Under the
Private Securities Litigation Act 1995
Private Securities Litigation Act 1995
Historical Consolidated Revenue
21%
81%
Consolidated Income Statement (3M)
FY11.1 vs. FY10.1
FY11.1 vs. FY10.1
+31.9%
+11.3%
+24.7%
+41.4%
+5.9%
+13.1%
+22.1%
+15.3%
+20.3%
+74.0%
Simulations Plus Income Statement (3M)
FY11.1 vs. FY10.1
FY11.1 vs. FY10.1
+18.2%
+30.3%
+11.3%
+23.8%
+40.0%
-16.9%
+9.8%
+17.4%
+22.5%
-74.7%
Words+ Income Statement (3M)
FY11.1 vs. FY10.1
FY11.1 vs. FY10.1
+8.3%
-25.0%
+21.7%
-2.9%
-0.5%
-63.2%
-23.1%
+0.0%
• Symbol: NASDAQ: SLP
• Market Capitalization: $51.91 million*
• Recent Price: $3.35*
• Average Daily Volume last 3 mo = 42,313*, last 10 days = 72,067*
• Shares outstanding: 15.5 million* (9.5% held by institutions)*
• Public float: 4.81 million*
• 12 Month Price Range: $ 1.62 - 3.74*
• Trailing twelve months revenues (11/30/10): $11.09 million*
• Quarterly revenue growth (yoy) 15.4%*
• Quarterly earnings growth (yoy) = 32.0%*
• Diluted EPS (trailing twelve months): $0.13*
• Return on Assets = 14.44%*
• Return on Equity = 19.69%*
*Yahoo! Data as of 2/17/11
Market Profile
Share Repurchase Program
• Board of directors authorized a second share repurchase
program for up to one million shares from February 15, 2010
through February 14, 2011
program for up to one million shares from February 15, 2010
through February 14, 2011
– Purchased 996,248 shares out of authorized 1 MM at average price of
$2.8341 including commissions (Total cost of $2,823,795).
$2.8341 including commissions (Total cost of $2,823,795).
• Just over 1,000,000 shares were bought back last year at
average price per share of about $1.30
average price per share of about $1.30
• Total share repurchases over both phases were about 2 million
shares at an average price of about $2.06/share
shares at an average price of about $2.06/share
• Board of directors may consider another repurchase program
at any time
at any time
12-Month Stock Prices
• Words+, Inc.
– Global business founded 1981 - pioneer business
– Assistive technology products for disabled
• Hardware
• Software
• Support products
– Technology leader and innovator since inception
– Provides some synergies and overhead cost-sharing
with pharmaceutical/biotech business
with pharmaceutical/biotech business
• Windows operating system programming issues
• Multi-national issues
• Accounting, Facilities and Human Relations
Words+ Overview
Words+ Financial Performance
FY 2010 vs FY2009
FY 2010 vs FY2009
Factors Affecting Words+ Financials
• Positive
• EyePro sales have helped since its introduction last year
• New product developments (not yet announced for competitive
reasons)
reasons)
• Funding software package has improved accounts receivable
collection cycle
collection cycle
• Negative
– Cost of Sales higher on products that are selling this year
– State budgets are very tight, may affect Medicaid orders
– Supplier of sound chips for MessageMate suddenly discontinued
product
product
• Limited supply remaining
• New design in progress with different circuitry
– iPhone and iPad solutions are becoming popular
• Inexpensive software offerings for simple voice output, but . . .
– Built-in speakers are not adequate for many environments
– Ruggedness is an issue
• May be a “flash in the pan” that loses its luster when practicality is not there
EyePro
• Introduced in May 2010
• Contributed to very profitable 4th quarter for Words+
Words+ AR Aging is Improving
*
* PacWare software started in Oct-09.
Words+ Growth Strategies
• Expand Product Offerings
– Focus product development on market needs
– Form alliances with other assistive technology companies
• Increase product awareness
– Workshops, conferences, webinars, web store
– Alliances with key clinicians and educators
• Increase dealer effectiveness
– Expansion of dealer/representative network
– Incorporation of remote video interaction with clients
• Simulations Plus, Inc.
– Software for pharmaceutical research
• Simulation technologies
• GastroPlus™
• DDDPlus™
• ADMET Predictor™
• MedChem Studio™
Simulations Plus (Life Sciences)
Overview
Overview
• The industry’s Gold Standard - most advanced and widely used
simulation of oral absorption/pharmacokinetics/pharmacodynamics
simulation of oral absorption/pharmacokinetics/pharmacodynamics
• Version 7.0 release in August 2010:
– Drug-drug Interaction Module released - new extra-cost module
– Additional Dosing Routes Module released - new extra-cost module
– Improved methods for dealing with in vivo solubilities
• Strategy going forward:
• Continue to enhance program in response to customer requests
• Continue to expand capabilities for dosing routes (transdermal,
intramuscular, intraperitoneal)
intramuscular, intraperitoneal)
GastroPlusTM
• First and only simulation tool for in vitro dissolution experiments
• Industry is learning how to use this unique tool and sales continue to grow
• Strategy going forward:
– Continue advancing state-of-the-art for this one-of-a-kind tool
– Continue aggressive marketing and sales activities
• Educate formulation scientists on how to use simulation in their work
• Emphasize compatibility with GastroPlus for formulation studies
DDDPlusTM
• Predicts properties of molecules from just their structures, including physicochemical properties,
pharmacokinetic properties, metabolism properties, and numerous toxicities
pharmacokinetic properties, metabolism properties, and numerous toxicities
• Consistently top-ranked in accuracy in published independent comparison studies
• Version 5.0 released in FY2010
• New atomic and molecular descriptors enhance all models - all models retrained
• New property predictions
• Improved model-building capabilities of ADMET Modeler™ subprogram
• Strategy going forward:
– Continue to expand- new toxicity and metabolism models coming shortly in version 5.5
– Further improve prediction accuracy through better molecular and atomic descriptors
– Further enhanced graphical outputs and reporting features
ADMET PredictorTM
• Integrated with ADMET Predictor - provides complete modeling/prediction
capability - used to build all models in ADMET Predictor except for a few
simple calculations
capability - used to build all models in ADMET Predictor except for a few
simple calculations
• Speed and model quality unsurpassed - contract studies have shown ability to
find useful models from user data (including activity) when others have failed
find useful models from user data (including activity) when others have failed
• Strategy going forward:
– Continue to advance state-of-the-art in machine learning methods
– Further improve user interface and convenience features
– May develop stand-alone product for general modeling use
ADMET ModelerTM
• Formerly ClassPharmer™. renamed it MedChem Studio last year
• Classifies molecules by “maximum common substructures” using proprietary algorithms (red
parts of molecules above)
parts of molecules above)
• Helps chemists identify what it is about molecular structures that cause good or bad properties
• Generates new molecules using proprietary algorithms
• Tight integration with ADMET Predictor to eliminate “losers” based on property predictions
• Strategy going forward:
– Molecule design now area of emphasis - MedChem Designer™ integrated into MedChem Studio to
further enhance our design capabilities
further enhance our design capabilities
MedChem StudioTM
• Exciting new product launched on February 17, 2011! Provided free
• Exciting combination of innovative molecule drawing capabilities that integrates tightly with
ADMET Predictor
ADMET Predictor
• Provides chemist with never-before-available information about how each change to a
molecule affects up to almost 130 different properties.
molecule affects up to almost 130 different properties.
• Strategy going forward:
– Molecule design now area of strategic emphasis
– MedChem Designer™ is integrated into MedChem Studio to further enhance our design capabilities
– Free ADMET Predictor predictions are a teaser - expected to promote additional ADMET Predictor
sales so chemists can see the other 120+ properties
sales so chemists can see the other 120+ properties
MedChem DesignerTM
Consulting Contracts
• Growing part of business
– Simulation studies
• Troubleshooting problem compounds
• Virtual bioequivalence trials
• Assist with design of new oral dosage formulations
• Generates leads for software licenses
• Identifies unmet needs for software improvements
• Increases our knowledge base and expertise
– Exposure to unusual compound behaviors
• Builds rapport and confidence not only with
customers’ scientists, but also with their management
customers’ scientists, but also with their management
Some of Our International
Pharma Customers
Pharma Customers
|
|
– Growing team of exceptional scientists and engineers
• Chemistry, biochemistry, molecular biology
• Chemical engineering, biomedical engineering
• Computer science
• Augmentative communication (Words+ subsidiary)
– Recognized world-class expertise in oral drug delivery,
pharmacokinetics, pharmacodynamics
pharmacokinetics, pharmacodynamics
– Large scale system simulations
– Applied numerical simulation/optimization methods to
multidimensional nonlinear problems
multidimensional nonlinear problems
– High quality, rapid structure-property modeling
– Marketing and sales to a highly technical global market
– Strong relationships with pharmaceutical scientists in industry,
government, and academia
government, and academia
Core Capabilities and Strengths
Strategic Considerations
• Aggressive marketing and sales activities have paid off,
and will continue
and will continue
• Development of new technologies via in-house funding
– Continue to develop new products such as our new MedChem
Designer™ software announced yesterday
Designer™ software announced yesterday
– Maintain our industry-leading position with GastroPlus™
– Continue to refine our existing products
• Cash position remains very strong
– We will use it to continue to hire selected staff and grow
organically, for accretive acquisitions, and for outsourcing of
specific activities to augment internal efforts
organically, for accretive acquisitions, and for outsourcing of
specific activities to augment internal efforts
– Board of Directors may consider additional share repurchases
• World-class and growing scientific team
• Experienced professional management team and board
• Continuously growing and profitable through global
economic crisis
economic crisis
• High margins: earnings growth > revenues growth
• Approximately $8.9 MM in cash and no debt
• Emerging, high-growth market
• Proprietary multi-platform software
• Recurring revenue business model
• Acquisition remains a major strategic goal
Investment Highlights
Increasing shareholder
value by providing
competitive advantages to
our customers in the
pharmaceutical, biotech,
and disability industries
value by providing
competitive advantages to
our customers in the
pharmaceutical, biotech,
and disability industries
Simulations Plus, Inc.
Questions and Answers
Opportunity for shareholders to ask questions about the
company.
company.
Please understand that we cannot provide any information
that would be considered “insider information” - information
that would provide those attending this meeting with
knowledge about company operations that would give them
an advantage in deciding to buy or sell shares in the public
markets. However, we will endeavor to answer every
question in as much detail as possible without violating SEC
rules.
that would be considered “insider information” - information
that would provide those attending this meeting with
knowledge about company operations that would give them
an advantage in deciding to buy or sell shares in the public
markets. However, we will endeavor to answer every
question in as much detail as possible without violating SEC
rules.