EX-99.1 2 simulations_ex9901.htm PRESS RELEASE

Exhibit 99.1

 

 

For Further Information:

Simulations Plus, Inc.

42505 10th Street West

Lancaster, CA 93534-7059

 

CONTACT:

Simulations Plus Investor Relations   Hayden IR
Ms. Renee Bouche   Mr. Cameron Donahue
661-723-7723   651-653-1854
renee@simulations-plus.com   slp@haydenir.com

 

For Immediate Release:

January 11, 2021

 

Simulations Plus Reports Record First Quarter FY2021 Financial Results

 

First quarter revenue of $10.7 million, reflecting 14% year-over-year growth

Board of Directors announces quarterly dividend of $0.06 per share

 

LANCASTER, CA, January 11, 2021 – Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemicals, and consumer goods industries, today reported financial results for its first quarter of fiscal year 2021.

 

Financial highlights compared with the corresponding period last fiscal year:

·Revenue increased 14% to $10.7 million
·Gross profit increased 22% to $8.3 million
·Gross margin was 77%, up from 72%
·Net income increased 21% to $2.5 million
·Diluted earnings per share increased 9% to $0.12

 

Shawn O’Connor, chief executive officer of Simulations Plus, said: “Our first quarter financial results were in line with our expectations highlighted by strong, double-digit revenue growth and increased profitability, despite a challenging comparison to the first quarter of fiscal 2020 that benefited from unusually strong results in our DILIsym division. The strategic investments in our sales and marketing infrastructure, and a growing reliance on modeling and simulation in the drug development ecosystem continue to facilitate strong revenue growth, as Simulations Plus bolsters its already strong position in the marketplace. The acquisition of Lixoft has meaningfully expanded our addressable market. In addition, this acquisition has had the desired impact of increasing the mix of software revenue, helping expand our overall profitability.”

 

 

 

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“We recently signed a large COVID-19-related consulting services project with a large pharmaceutical client, validating the resources we devoted to our COVID-19 initiative and demonstrating the increasing value we play in support of our clients,” added Mr. O’Connor. “We also signed a new three-year project with a large private foundation as well as three new projects with a large non-profit biotechnology institute. Looking ahead, demand for our consulting services remains strong and next generation releases of several of our software products that are scheduled for fiscal 2021 reinforce our confidence in delivering another year of organic growth of 15% to 20% in fiscal 2021.”

 

Quarterly Dividend Declared

 

The Company’s Board of Directors has declared a cash dividend of $0.06 per share of the Company’s common stock payable on February 1, 2021, to shareholders of record as of January 25, 2021. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.

 

Investor Conference Call

 

The Company has announced an investor conference call that will be webcast live at 1:15 p.m. PST/4:15 p.m. EST on Monday, January 11, 2021. The live webcast/teleconference will be accessible by here or by calling 1-201-389-0879. Please join 5 to 10 minutes before the scheduled start time. The call will be simulcast live on the Internet, and the webcast will be available on the Investors page of the Simulations Plus website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call.

 

About Simulations Plus, Inc.

Simulations Plus, Inc., is a leading provider of modeling and simulation software and consulting services supporting drug discovery, development research, and regulatory submissions. With our subsidiaries, Cognigen, DILIsym Services, and Lixoft, we offer solutions which bridge machine learning, physiologically based pharmacokinetics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. Our technology is licensed and applied by major pharmaceutical, biotechnology, chemical, consumer goods companies and regulatory agencies worldwide. For more information, visit our website 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. 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 our new software products as well as 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, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission.

 

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   (Unaudited)   (Audited) 
(in thousands, except share and per share amounts)  November 30,   August 31, 
ASSETS        
   2020   2020 
Current assets          
Cash and cash equivalents  $27,651   $49,207 
Accounts receivable, net of allowance for doubtful accounts of $50 and $50   7,331    7,422 
Revenues in excess of billings   2,837    3,093 
Prepaid income taxes   560    970 
Prepaid expenses and other current assets   1,738    1,596 
Short-term investments   91,115    66,804 
Total current assets   131,232    129,092 
Long-term assets          
Capitalized computer software development costs,          
net of accumulated amortization of $13,906 and $13,582   6,490    6,087 
Property and equipment, net   596    438 
Operating lease right of use assets   768    927 
Intellectual property, net of accumulated amortization of $5,444 and $5,087   11,541    11,898 
Other intangible assets, net of accumulated amortization of $1,779 and $1,642   6,871    7,008 
Goodwill   12,921    12,921 
Other assets   51    51 
Total assets  $170,470   $168,422 
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Current liabilities          
Accounts payable  $332   $351 
Accrued payroll and other expenses   2,300    2,251 
Current portion - contracts payable   2,000    2,000 
Billings in excess of revenues   206    141 
Operating lease liability, current portion   395    463 
Deferred revenue   244    300 
Total current liabilities   5,477    5,506 
           
Long-term liabilities          
Deferred income taxes, net   2,401    2,354 
Operating lease liability   376    463 
Payments due under contracts payable   4,185    4,064 
Total liabilities   12,439    12,387 
           
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 and additional paid in capital — 50,000,000 shares authorized, 19,958,760 and 19,923,277 shares issued and outstanding   129,253    128,541 
Retained earnings   28,720    27,436 
Accumulated other comprehensive income   58    58 
Total shareholders' equity   158,031    156,035 
Total liabilities and shareholders' equity  $170,470   $168,422 

 

 

 

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

For the three months ended November 30,

 

(in thousands, except per common share amounts)  2020   2019 
         
Revenues  $10,701   $9,401 
Cost of revenues   2,433    2,643 
Gross margin   8,268    6,758 
Operating expenses          
Selling, general, and administrative   4,408    3,514 
Research and development   809    526 
Total operating expenses   5,217    4,040 
           
Income from operations   3,051    2,718 
           
Other income (expense)          
Interest income   61    11 
Change in value of contingent consideration   (121)   – 
Income on currency exchange   5    4 
Total other income (expense)   (55)   15 
           
Income before provision for income taxes   2,996    2,733 
Provision for income taxes   (517)   (675)
Net income  $2,479   $2,058 
           
Earnings per share          
Basic  $0.12   $0.12 
Diluted  $0.12   $0.11 
           
Weighted-average common shares outstanding          
Basic   19,930    17,609 
Diluted   20,799    18,307 

 

 

 

 

 

 

 

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