Another New Record Set for Quarterly and Annual Revenues
Simulations Plus, Inc. (AMEX:SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported preliminary revenues for the fourth quarter and for the entire fiscal year 2007 (4Q07 and FY07) ended August 31, 2007.
Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: “Because we expect that it will be late-November or so before we can file our 10-KSB, we want to provide what information we can now for our investors regarding our performance for the 4th quarter and the fiscal year. The complexities of tax accounting and other factors mean we will not know exact earnings until the 10-KSB and all audits are completed, but at least we can provide information regarding revenues at this time.”
Ms. Beran continued: “I’m very pleased to report that consolidated revenues for 4Q07 set a new record for 4th quarters at $2,170,000, an increase of 22.8% from $1,767,000 in the fourth quarter of fiscal year 2006 (4Q06). The previous record fourth quarter was in FY03 when we booked a large three-year global pharmaceutical software license up-front. As we announced about two years ago, we no longer book multi-year licenses up-front, so this new record was achieved without the benefit of any such large order. Fourth quarter revenues from pharmaceutical software and services were up 38.5% to $1,395,000 from $1,007,000 in 4Q06. Revenues for our Words+ subsidiary were $775,000, an increase of 2.0% from $760,000 in 4Q06.
Ms. Beran continued: “For the entire fiscal year, revenues grew 50.2% to $8,792,000 from $5,855,000 in FY06, slightly exceeding our guidance of at least a $2.9 million increase in revenues over last fiscal year. Revenues from pharmaceutical software and services increased 78.5% to $5,686,000 in FY07 as compared to $3,186,000 in FY06. Revenues for our Words+ subsidiary increased 16.4% to $3,106,000 from $2,669,000 in FY06. The Company is financially strong, with over $4 million in cash at this time, and we remain debt-free.”
Ron Creeley, vice president of marketing and sales for Simulations Plus, added: “As revenues grow year after year, it becomes more and more difficult to sustain a particular growth rate, much less to increase it, yet FY07 demonstrated sustained accelerated growth. This fiscal year, our customer base has grown from approximately 50 companies to approximately 80 companies. Increased orders from new departments within larger companies have also contributed to our growth, with almost every large pharmaceutical company increasing the number of licenses for Simulations Plus software, as well as a greater number of consulting contracts and our SBIR grant from the National Institutes of Health.”
Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: “It goes without saying that we’re extremely pleased with our 50% revenue overall growth and 78% growth in pharmaceutical software and services revenues over last year. It is especially notable that this growth rate was achieved without the benefit of a single acquisition during the fiscal year. We had hoped to complete one or more before the end of the fiscal year, but that didn’t happen. Nonetheless, our discussions are ongoing with such candidates for both the pharmaceutical and the disability sides of our business. This has been an exciting year in so many ways – strong sales, an ever-expanding world-class team that is innovative and dedicated, and an ever-growing list of outstanding collaborations with both government agencies and academia that we believe are crucial to our strategic growth initiatives.”
About Simulations Plus, Inc.
Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation software, which is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies worldwide. We have two other businesses that are based on our proprietary technologies: a wholly owned subsidiary, Words+, Inc., which provides assistive technologies to persons with disabilities as well as a personal productivity tool for the mass market called Abbreviate!™, and an educational software series for science students in middle and high schools known as FutureLab™. For more information, visit our Web sites at www.simulations-plus.com and www.words-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, continued acceptance of new software and 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, our ability to complete accretive acquisitions, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the Securities and Exchange Commission.