Slide 1: Simulations Plus, Inc. (NASDAQ:SLP) September 2010
Simulations Plus, Inc. (NASDAQ:SLP) September 2010
Slide 2: Safe Harbor Statement
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
Slide 3: SLP Q4FY10 and FY 2010 Highlights
SLP Q4FY10 and FY 2010 Highlights Three months and fiscal year ended 8/31/10 • 12 th consecutive profitable quarter • Record fourth quarter: – 4QFY10 sales up 20% to record $2.2 million from $1.8 million in 4QFY09 – Pharmaceutical software and services sales increase 20.5% for 4QFY10 over 4QFY09 – R
Slide 4: Professor Stephen Hawking
Professor Stephen Hawking • One of world’s foremost theoretical astrophysicists - author of best-seller “A Brief History of Time” • Paralyzed with Lou Gehrig’s disease (ALS) • Has used Words+ software since 1985 for speaking, writing, Internet access, environmental control
Slide 5: EyePro Eyegaze Input System
EyePro™ Eyegaze Input System • Words+ subsidiary launched new EyePro eyegaze product in May with immediate sales during Q4. • Fills gap in product line that had previously limited our sales to a major market segment • Can be added to any Windows-based computer or communication device
Slide 6: Consolidated Revenue
Consolidated Revenue Record 1st quarter Record 4 th quarter 4Q10E includes preliminary Q4 revenues (fiscal year end is August 31)
Slide 7: Revenue History for Fiscal Years
Revenue History for 5 Fiscal Years 2010 includes preliminary Q4 results (fiscal year end is August 31)
Slide 8: Pharmaceutical Growth
Pharmaceutical Growth 4Q10E includes preliminary Q4 revenues (fiscal year end is August 31)
Slide 9: Pharmaceutical Growth
Pharmaceutical Growth (through 3Q: 4Q income available after audit)
Slide 10: Consolidated Gross Margin (through 3Q)
Consolidated Gross Margin (through 3Q) (through 3Q: 4Q results available after audit) 75.6% 78.9% 78.8% 70.4% 73.8% 74.4% 80.0% 67.9% 75.0% 76.3% 77.6%
Slide 11: Income Before Taxes
Income Before Taxes (through 3Q: 4Q results available after audit)
Slide 12: Net Income by Business Unit
Net Income by Business Unit (through 3Q: 4Q results available after audit)
Slide 13: Consolidated Income Statement
Q3 FY 10 Q3 FY 09 YTD FY 10 YTDFY 09 Pharmaceutical software and services revenue 2.325 1.986 6.287 5.194 Words+ revenue 0.794 0.728 2.219 2.110 Consolidated revenue 3.119 2.714 8.506 7.304 Gross profit 2.420 2.131 6.499 5.535 Gross profit margin 77.6% 78.5% 76.4% 75.8% SG&A 1.118 0.989 3.211 2.930
Slide 14: Select Balance Sheet Items
May 31, 2010 Aug. 31, 2009 Cash and cash equivalents * $8.583 $7.473 Total current assets 12.335 10.265 Total assets $14.566 $12.303 Total current liabilities 1.342 0.937 Total liabilities 1.775 1.732 Shareholders’ equity 12.791 10.571 Total liabilities and shareholders’ equity ** $14.566 12.303 Sel
Slide 15: Share Repurchase Program
Share Repurchase Program • The board of directors approved a second share repurchase program beginning February 2010 for one year • The purpose of the program is to use some of our excess cash to increase shareholder value by reducing the number of shares outstanding and increasing the per-share met
Slide 16: Aggressive Marketing and Sales Program
Aggressive Marketing and Sales Program • More of our development and consulting scientists are involved in covering the expanded conference/meeting schedule • The number of conferences and scientific meetings continues at a high level, with 15 in the 3 rd quarter and 13 in the 4 th quarter • Fundame
Slide 17: Software for Pharmaceutical R&D
Discovery Preclinical Clinical MedChem Studio™ GastroPlus™ DDDPlus™ ADMET Predictor™ Software for Pharmaceutical R&D
Slide 18: Cutting-edge Software Enhancements
Cutting-edge Software Enhancements • Simulations Plus continues to increase its technological advantage • Version 7.0 released in August • Three new market-expanding capabilities: • Drug-drug interaction • Ocular drug delivery • Nasal/pulmonary drug delivery • Version 5.0 released in July - new toxi
Slide 19: GastroPlus
• Flagship product: the industry’s Gold Standard - most advanced simulation of oral absorption/pharmacokinetics/pharmacodynamics • FDA has numerous licenses, also NIHS in Japan • Strategy going forward: – Continue extending product capabilities: • Version 7.0 released in August with significant mark
Slide 20: ADMET Predictor
• Version 5.0 released in July with major upgrades and new models • Ranked #1 in accuracy in every independent comparison study – No other company has consistently been in the top 4! • Predicts numerous properties of molecules from just their structures, including physicochemical and pharmacokinetic
Slide 21: MedChem Studio
• Formerly ClassPharmer™ - merge of two products acquired in 2005 • Classifies molecules by “common substructures” using proprietary algorithms • powerful data mining tool for high throughput screening data • Helps chemists identify what it is about molecular structures that cause good or bad proper
Slide 22: DDDPlus
• First and only simulation tool for in vitro dissolution experiments • Industry is learning how to use this unique tool and sales are increasing steadily • FDA is one of our users • Strategy going forward: – Continue aggressive marketing and sales activities • Educate formulation scientists on how
Slide 23: Summary
Summary • Simulations Plus is characterized by: – Outstanding scientific reputation • Top-rated software in independent comparison studies – GastroPlus – ADMET Predictor • Constant stream of consulting contracts, including top 5 pharmaceutical companies – Consistently strong financial performance –
Slide 24: Simulations Plus, Inc.
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