Simulations Plus first quarter consolidated revenues increase 15.4% to record $2.811M

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 2011 ended November 30, 2010 (1QFY11).

1QFY11 highlights compared with 1QFY10:

• Consolidated revenues up 15.4% to record $2.811 million from $2.437 million
• Pharmaceutical software and services revenues up 18.2% to $2.050 million from $1.735 million
• Words+ subsidiary revenues up 8.3% to $761,000 from $702,000
• Gross profit up 13.1% to $2.070 million from $1.830 million
• SG&A increased 5.8% to $1.062 million from $1.004 million
• R&D expenditures decreased 14.4% to $395,000 from $462,000
• Income before income taxes up 24.7% to $0.825 million from $0.661 million
• Net income up 32.0% to $568,000 from $430,000
• Diluted earnings per share up 34% to $0.0343 from $0.0256

Ms. Momoko Beran, chief financial officer of Simulations Plus, said, "We're pleased to report these results that show continued strong performance in both business units. Cash at the end of 1QFY11 was $8.873 million compared to $7.973 million at the end of 1QFY10, and compared to $9.63 million at the beginning of the quarter. We used $1.190 million of our cash to repurchase 397,680 shares during the first quarter. Although we incurred this expenditure, shareholders' equity increased 15.4% to $12.482 million compared to $10.812 million in 1QFY10."

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added, "This is yet another record first quarter for both revenues and earnings. We've experienced steady growth and new record quarter-over-quarter performance for a number of years, including through the recent global downturn for so many other businesses. We believe our emphasis on providing the very best in our product areas, an aggressive marketing and sales program, strong customer support, and frugal expense management have been the keys to this success. We continue to seek accretive acquisitions, and while we've investigated a number of them in the past couple of years, after due diligence we discovered either inadequate technology or unfavorable business terms for our shareholders. This area remains a high priority and we will continue to seek favorable acquisitions. We are also expanding staff and outsourcing some activities in order to enhance and expand our product lines.