Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Shareholder Meeting (February 2011)
35 slides from Simulations Plus's shareholder meeting presentation, Feb 23, 2011
Slide 1: Simulations Plus, Inc. Annual Shareholders Meeting
Exhibit 99.1 Simulations Plus, Inc. Annual Shareholders Meeting February 18, 2011
Slide 2: Agenda
Agenda • Welcome and Introductions • Discussion of Voting Issues • Chairman’s Remarks • Questions & Answers • Adjournment of Official Meeting
Slide 3: Management & Directors
Management & Directors • Board of Directors: – Walter S. Woltosz, M.S., M.A.S., Chairman & CEO. • Co-founder, Words+, Inc. and Simulations Plus, Inc. – David Z. D’Argenio, Ph.D., Director • Professor, Biomedical Engineering, USC • Director, Co-Director, Biological Simulation Resource Center, USC sin
Slide 4: Outside Counsels
Outside Counsels • Registered Independent Auditors • Rose, Snyder & Jacobs, Encino, CA • Tax Specialists • Rabbani, Inc., Los Angeles, CA • Legal Counsel • Luce, Forward, Hamilton & Scripps, San Diego, CA
Slide 5: Discussion of Voting Issues
Discussion of Voting Issues Candidates for Board of Directors remain unchanged: • David Z. D’Argenio, Ph.D. • Richard R. Weiss, Ph.D. • H. Wayne Rosenberger • Virginia E. Woltosz, MBA • Walter S. Woltosz, MS, MAS • Outside auditor: • Rose, Snyder, Jacobs • Expansion of Board of Directors to minimum
Slide 6: Chairman's Remarks
Chairman’s Remarks • Company Overview • Financial Performance • Words+, Inc. • Simulations Plus, Inc.
Slide 7: Safe Harbor Statement Under the Private Securities Litigation Act 1995
Safe Harbor Statement Under the Private Securities Litigation Act 1995 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 significantl
Slide 8: Historical Consolidated Revenue
Historical Consolidated Revenue 21% 81%
Slide 9: Consolidated Income Statement (3M) FY11.1 vs. FY10.1
Consolidated Income Statement (3M) FY11.1 vs. FY10.1 +15.3% +22.1% +13.1% +5.9% +20.3% +41.4% +74.0% +24.7% +11.3% +31.9%
Slide 10: Simulations Plus Income Statement (3M) FY11.1 vs. FY10.1
Simulations Plus Income Statement (3M) FY11.1 vs. FY10.1 +18.2% +22.5% +17.4% +9.8% -16.9% +40.0% -74.7% +23.8% +11.3% +30.3%
Slide 11: Words+ Income Statement (3M) FY11.1 vs. FY10.1
Words+ Income Statement (3M) FY11.1 vs. FY10.1 +8.3% +21.7% -2.9% -0.5% -63.2% -23.1% +0.0% -25.0%
Slide 12: Market Profile
Market Profile • Symbol: NASDAQ: SLP • Market Capitalization: $51.91 million* • Recent Price: $3.35* • Average Daily Volume last 3 mo = 42,313*, last 10 days = 72,067* • Shares outstanding: 15.5 million* (9.5% held by institutions)* • Public float: 4.81 million* • 12 Month Price Range: $ 1.62 - 3.74
Slide 13: Share Repurchase Program
Share Repurchase Program • Board of directors authorized a second share repurchase program for up to one million shares from February 15, 2010 through February 14, 2011 – Purchased 996,248 shares out of authorized 1 MM at average price of $2.8341 including commissions (Total cost of $2,823,795). • J
Slide 14: 12-Month Stock Prices
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Slide 15: Words+ Overview
Words+ Overview • Words+, Inc. – Global business founded 1981 - pioneer business – Assistive technology products for disabled • Hardware • Software • Support products – Technology leader and innovator since inception – Provides some synergies and overhead cost-sharing with pharmaceutical/biotech bus
Slide 16: Words+ Financial Performance
Words+ Financial Performance FY 2010 vs FY2009
Slide 17: Factors Affecting Words+ Financials
Factors Affecting Words+ Financials • Positive • EyePro sales have helped since its introduction last year • New product developments (not yet announced for competitive reasons) • Funding software package has improved accounts receivable collection cycle • Negative – Cost of Sales higher on products
Slide 18: EyePro
EyePro • Introduced in May 2010 • Contributed to very profitable 4th quarter for Words+
Slide 19: Words+ AR Aging is Improving
Words+ AR Aging is Improving * * PacWare software started in Oct-09.
Slide 20: Words+ Growth Strategies
Words+ Growth Strategies • Expand Product Offerings – Focus product development on market needs – Form alliances with other assistive technology companies • Increase product awareness – Workshops, conferences, webinars, web store – Alliances with key clinicians and educators • Increase dealer effect
Slide 21: Simulations Plus (Life Sciences) Overview
Simulations Plus (Life Sciences) Overview • Simulations Plus, Inc. – Software for pharmaceutical research • Simulation technologies • GastroPlus™ • DDDPlus™ • ADMET Predictor™ • MedChem Studio™
Slide 22: GastroPlus
GastroPlusTM • The industry’s Gold Standard - most advanced and widely used simulation of oral absorption/pharmacokinetics/pharmacodynamics • Version 7.0 release in August 2010: – Drug-drug Interaction Module released - new extra-cost module – Additional Dosing Routes Module released - new extra-cos
Slide 23: DDDPlus
DDDPlusTM • First and only simulation tool for in vitro dissolution experiments • Industry is learning how to use this unique tool and sales continue to grow • Strategy going forward: – Continue advancing state-of-the-art for this one-of-a-kind tool – Continue aggressive marketing and sales activiti
Slide 24: ADMET Predictor
ADMET PredictorTM • Predicts properties of molecules from just their structures, including physicochemical properties, pharmacokinetic properties, metabolism properties, and numerous toxicities • Consistently top-ranked in accuracy in published independent comparison studies • Version 5.0 released i
Slide 25: ADMET Modeler
ADMET ModelerTM • Integrated with ADMET Predictor - provides complete modeling/prediction capability - used to build all models in ADMET Predictor except for a few simple calculations • Speed and model quality unsurpassed - contract studies have shown ability to find useful models from user data (in
Slide 26: MedChem Studio
MedChem StudioTM • Formerly ClassPharmer™. renamed it MedChem Studio last year • Classifies molecules by “maximum common substructures” using proprietary algorithms (red parts of molecules above) • Helps chemists identify what it is about molecular structures that cause good or bad properties • Gene
Slide 27: MedChem Designer
MedChem DesignerTM • Exciting new product launched on February 17, 2011! Provided free • Exciting combination of innovative molecule drawing capabilities that integrates tightly with ADMET Predictor • Provides chemist with never-before-available information about how each change to a molecule affect
Slide 28: Consulting Contracts
Consulting Contracts • Growing part of business – Simulation studies • Troubleshooting problem compounds • Virtual bioequivalence trials • Assist with design of new oral dosage formulations • Generates leads for software licenses • Identifies unmet needs for software improvements • Increases our kno
Slide 29: Some of Our International Pharma Customers
Some of Our International Pharma Customers
Slide 30: Core Capabilities and Strengths
Core Capabilities and Strengths – Growing team of exceptional scientists and engineers • Chemistry, biochemistry, molecular biology • Chemical engineering, biomedical engineering • Computer science • Augmentative communication (Words+ subsidiary) – Recognized world-class expertise in oral drug deliv
Slide 31: Strategic Considerations
Strategic Considerations • Aggressive marketing and sales activities have paid off, and will continue • Development of new technologies via in-house funding – Continue to develop new products such as our new MedChem Designer™ software announced yesterday – Maintain our industry-leading position with
Slide 32: Investment Highlights
Investment Highlights • World-class and growing scientific team • Experienced professional management team and board • Continuously growing and profitable through global economic crisis • High margins: earnings growth > revenues growth • Approximately $8.9 MM in cash and no debt • Emerging, high-gro
Slide 33: Simulations Plus, Inc.
Simulations Plus, Inc. Increasing shareholder value by providing competitive advantages to our customers in the pharmaceutical, biotech, and disability industries
Slide 34: Questions and Answers
Questions and Answers Opportunity for shareholders to ask questions about the company. Please understand that we cannot provide any information that would be considered “insider information” - information that would provide those attending this meeting with knowledge about company operations that wo
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Simulations Plus — Shareholder Meeting (February 2011) on 6ix