SIMU up .19 to 1.54:
B: SIMULATIONS PLUS INC - Third Quarter Financial Results - Rec
B: SIMULATIONS PLUS INC - Third Quarter Financial Results - Record Revenues,
EPS of $0.10 for First Three Quarters
New York, New York, Jul 08, 2002 (Market News Publishing via COMTEX) --
Simulations Plus, Inc. (www.simulations-plus.com), the leading provider of oral
drug absorption predictive software to the pharmaceutical industry, reported its
financial results for the third fiscal quarter ended May 31, 2002.
Consolidated net revenues for the third quarter increased 15% to a record
$1,120,000, as compared with $974,000 in the third quarter of fiscal 2001. This
was the result of a 74.2% increase in sales of the company's pharmaceutical
software and services to $500,000, as compared with $287,000 in the third
quarter 2001. Although sales for the Words+ subsidiary were up 9% over the
second quarter, they decreased by 8% to $616,000 in the third quarter of fiscal
2002 from $670,000 in the third quarter of fiscal 2001. Management attributes
the decrease in Words+ sales primarily to the tragic incidents on September 11,
overall sluggish economy for augmentative communication sales, personnel changes
in two key sales representatives, and lower sales of the Company's MessageMate
product.
For the quarter ended May 31, 2002, net earnings were $109,000, or slightly over
$0.03/diluted share, as compared with a loss of ($68,000), or ($0.02)/diluted
share in the third quarter of fiscal 2001, meeting the company's preliminary
estimate of $0.03-0.04/diluted share provided in the June 4 press release.
Management attributes the increase in net profit to increased revenues from
pharmaceutical software and services and increased operating efficiencies,
offset by somewhat lower, but increasing over last quarter, sales in the Words+
subsidiary. Operating leverage increased in the third quarter of 2002, with
total operating expenses representing only 56.7% of net sales, as compared with
65.4% of net sales in the third quarter of fiscal 2001.
For the nine months ended May 31, 2002, net sales increased 4.5% to $3,234,000,
as compared with $3,095,000 for the first nine months of fiscal 2001. Revenues
from the company's pharmaceutical software and services business increased 64.9%
to $1.43 million for the first three quarters of fiscal 2002 as compared to
$867,000 for the same period in fiscal 2001.
Net income for the nine months ended May 31, 2002, increased to $337,000, or
$0.10/diluted share outstanding, as compared with a loss of ($80,000) or
($0.02)/diluted share for the first nine months of fiscal 2001.
"These outstanding results are the result of the hard work and dedication of
every member of the Simulations Plus and Words+ teams," said Walt Woltosz,
chairman and chief executive officer. "We're seeing continued strong growth in
our pharmaceutical sales and services revenues, and our Words+ subsidiary has
also shown improvement after a slow start in the first two quarters. Cash flow
is good, our line of credit has been paid off for months, and we continue to
build shareholder equity."
Momoko Beran, chief financial officer for the company, said, "Shareholder equity
continued to grow this quarter, increasing 21% to $620,000 from $511,000 at the
end of the second fiscal quarter. A small portion of the accrued salaries was
paid, but this had no effect on earnings or shareholder equity, because accrued
salaries have always been reflected as a liability. So payment of accrued
salaries simply means an equal reduction of both cash and debt, like paying any
other bill. It is our policy to pay back portions of accrued salaries only when
we can do so and maintain comfortable cash reserves. Our officers and managers
who still have unpaid accrued salaries after four years, have agreed with this
policy. Simulations Plus shareholders should be proud of the patience,
dedication and commitment shown by this management team."
Ron Creeley, vice president of marketing and sales for the company, said, "This
has been another exciting quarter. Our marketing and sales efforts continue at
an aggressive pace, and we believe strong growth will continue for the
foreseeable future. We are unquestionably the gold standard for oral drug
absorption simulation and modeling for companies ranging from the biggest giants
to smaller biotechnology and drug delivery companies. We believe there is
substantial growth potential for the products we already have, and even more
with the new product developments we are now completing."
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. The Company has two other businesses, Words+, Inc. and FutureLab(TM),
which are based on its proprietary software technologies and which provide
support for the emerging pharmaceutical enterprise. Simulations Plus, Inc. is
headquartered in Southern California and trades on the OTCBB under the symbol
"SIMU."
Safe Harbor Statement Under the Private Securities Litigation Act 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. The actual future 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: the Company's ability to
maintain its technological leadership in absorption prediction, the ability of
the Company to continue to market its products to new segments within the
pharmaceutical industry, and the ability of the Company to continue to finance
its sales and R&D efforts through its own cash flow or, alternatively, to raise
additional financing.
SIMULATIONS PLUS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months
ended May 31, 2002 and 2001
(Unaudited)
Three months ended Nine months ended
05/31/02 05/31/01 05/31/02 05/31/01
Net sales $1,119,967 $974,166 $3,233,877 $3,094,915
Cost of sales 373,064 399,817 1,078,706 1,306,149
Gross profit 746,903 574,349 2,155,171 1,788,766
Operating expenses:
Selling, general
& administration 540,337 549,606 1,534,793 1,582,470
Research
and development 94,929 87,161 270,452 269,762
Total operating
expenses 635,266 636,767 1,805,245 1,852,232
Income (loss)
from operations 111,637 (62,418) 349,926 (63,466)
Other income (expenses):
Interest revenue 1 24 16 75
Interest expense (2,601) (5,496) (12,468) (17,230)
Income (loss) before
provision for
income taxes 109,037 (67,890) 337,474 (80,621)
Provision (benefit)
for income taxes 0 0 0 0
Net income (loss) $109,037 $(67,890) $337,474 $(80,621)
Basic net income
(loss) per
common share $0.03 $(0.02) $0.10 $(0.02)
Diluted net income
(loss) per
common share $0.03 $(0.02) $0.10 $(0.02)
Basic weighted average #
of common shares
outstanding 3,408,331 3,392,434 3,408,331 3,388,056
Diluted weighted average #
of common shares
outstanding 3,408,331 3,392,434 3,408,331 3,388,056
CONTACT: TEL: 661/723-7723 Simulations Plus, Inc.
Ron Creeley |
