Attached files
| file | filename |
|---|---|
| 8-K - SIMULATIONS PLUS, INC. - Simulations Plus, Inc. | simulations_8k-071411.htm |
Exhibit 99.1
Simulations Plus, Inc.
(NASDAQ:SLP)
Third Quarter FY 2011
Conference Call and Webinar
July 14, 2011
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
• 3Q11 compared to 3Q10:
– 15th consecutive profitable quarter (37 of last 39 were profitable)
– 3Q11 sales up 10.3% to record $3.44 million from $3.12 million
– Pharmaceutical segment sales up 13.5%
– Words+ subsidiary sales up 0.7%
– Net Income up 42.4% to $1.054 million from $0.740 million
– Diluted earnings per share up 49.4% to $0.07 from $0.04
• 9moFY11 compared to 9moFY10:
– Sales up 12.9% to Record $9.6 MM from $8.5 MM in 9moFY10
– Pharmaceutical segment sales up 16.3%
– Words+ subsidiary sales up 3.1%
– Net Income up 39.7% to $2.5 million from $1.8 million
– Diluted earnings per share up 43% to $0.16 from $0.11
• Strong balance sheet:
– Cash $9.9 MM at 5/31/11, after using just over $2 million cash repurchase shares
during first two fiscal quarters. Cash today = $10.96 million
during first two fiscal quarters. Cash today = $10.96 million
– Shareholders’ equity increased 5.8% to $13.8 million from $13.1 million at 9/1/10
– Equity per share increased 8.9% in the first 9 months to $0.86 from $0.79 at 9/1/10
– No debt
SLP 3Q11 Highlights
Three months ended 5/31/11
Three months ended 5/31/11
Consolidated Revenue
Revenue History
Pharmaceutical Growth
Gross Margin (consolidated)
75.6%
78.9%
78.8%
70.4%
73.8%
74.4%
80.0%
67.9%
75.0%
76.3%
77.6%
75.6%
73.6%
77.6%
76.3%
Income Before Taxes
Net Income
$243K
$565K
$764K
$165K
$312K
$368K
$569K
$163K
$430K
$641K
$740K
$345K
$567K
$907K
$1.054 M
Consolidated Income Statement
($ millions)
|
|
3Q11
|
3Q10
|
|
Pharmaceutical software and services revenue
|
2.640
|
2.325
|
|
Words+ revenue
|
0.799
|
0.794
|
|
Consolidated revenue
|
3.439
|
3.119
|
|
Gross profit
|
2.623
|
2.420
|
|
Gross profit margin
|
76.3%
|
77.6%
|
|
SG&A
|
1.063
|
1.118
|
|
R&D
|
0.238
|
0.234
|
|
Total operating expenses
|
1.302
|
1.352
|
|
Income before income taxes
|
1.378
|
1.112
|
|
Net income
|
1.054
|
0.740
|
|
Earnings per share (diluted)
|
0.07
|
0.04
|
Select Balance Sheet Items
($ millions)
|
|
May 31, 2011
|
May 31, 2010
|
|
Cash and cash equivalents
|
$9.894
|
$8.583
|
|
Total current assets
|
13.771
|
12.335
|
|
Total assets
|
$16.337
|
$14.566
|
|
|
|
|
|
Total current liabilities
|
1.747
|
1.342
|
|
Total liabilities
|
2.529
|
1.775
|
|
|
|
|
|
Shareholders’ equity
|
13.808
|
12.791
|
|
Total liabilities and shareholders’ equity
|
16.337
|
14.566
|
Marketing and Sales Program
• Fundamental industry shift continues
– Pharma increasingly utilizing simulation software and modeling tools
to increase productivity - steady stream of scientific meetings
to increase productivity - steady stream of scientific meetings
– Software tools are always evolving, and as the technology advances,
new capabilities attract new users.
new capabilities attract new users.
– Releases during the 3rd quarter included:
– MedChem Studio 2.0
– DDDPlus 4.0
– 47 new customers in the first 3 quarters (includes new companies and
new departments within existing large customers)
new departments within existing large customers)
• Collaborations/Consulting/Grants
– We completed our SBIR grant with the National Institutes of Health.
– We’re progressing on our 5-year collaboration with the FDA Center for
Food Safety and Applied Nutrition to build toxicity models with ADMET
Predictor/Modeler™ for food additives and contaminants
Food Safety and Applied Nutrition to build toxicity models with ADMET
Predictor/Modeler™ for food additives and contaminants
– We recently formed a second studies team for informatics to address
the need for consulting work in cheminformatics (ADMET Predictor &
MedChem Studio) and have already conducted two small studies in
that new area.
the need for consulting work in cheminformatics (ADMET Predictor &
MedChem Studio) and have already conducted two small studies in
that new area.
• Simulations Plus continues to increase its technological advantage
Ongoing Enhancements
• Version 7.0 was released in August 2010 - a major upgrade
• Three new market-expanding capabilities plus numerous features:
• Drug-to-drug interaction (released, now in beta test for further expansions)
• Ocular drug delivery
• Nasal/pulmonary drug delivery
• Version 5.5 was released in March - major upgrade
• Prediction of sites of metabolism now available
• Version 2.0 was released in April - major upgrade
• Integration of new MedChem Designer software
• Significant speed improvements
• MedChem Designer downloads/activations nearly 800
• Version 4.0 released in June
• Virtual Trials added to show expected variances in experiments
• Customer base continues to grow
• FDA added more licenses during 3rd quarter
Summary
• For the trailing 12 months through May 31:
- Revenues = $11.8 million (up 14.1%)
- Net Income = $2.87 million (up 45.6%)
- Earnings/share = $0.18 (up 45.6%)
• Simulations Plus is globally recognized as a leader in our
respective market niches
respective market niches
- Outstanding reputation for scientific expertise and technological
innovation
innovation
- Strong customer support
• Expanding our Life Sciences team:
- To promote faster development of new products and services
- To strengthen our marketing and sales efforts
Q&A