SLP

[setravis]

RAISES GROSS REVENUE GUIDANCE: Simulations Plus, Inc. (SLP) provided gross revenues
guidance for its fiscal year 2008 ending August 31, 2008. Walt Woltosz, chairman and CEO
of Simulations Plus, said, "Without acquisitions, we are forecasting an increase in gross revenues
of at least $3M for the fiscal year." Ms. Momoko Beran, CFO of Simulations Plus, added,
"We're pleased to report that preliminary first quarter revenues were $1,976,000, up 35.6% from
$1,456,000 during the first fiscal quarter of FY07."

[BigSully1]

Simulations Plus Reports First Quarter FY2008 Financial Results
Monday January 14, 9:15 am ET 
Revenues Increase 36%, Earnings Increase 232%


LANCASTER, Calif.--(BUSINESS WIRE)--Simulations Plus, Inc. (Nasdaq:SLP - News), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported its financial results for the first quarter of fiscal year 2008 (1Q08) ended November 30, 2007.
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Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: "Consolidated revenues for 1Q08 were $1,984,000, an increase of 36.2% from $1,456,000 in the first quarter of fiscal year 2007 (1Q07) and a new record for first quarters. A large pharmaceutical software order that had been received in the second quarter last year came in during the first quarter this year; however, pharmaceutical revenues would have exceeded last year's first quarter even without that order. First quarter revenues from pharmaceutical software and services increased 74.5% to $1,438,000 from $824,000 in 1Q07. First quarter revenues for our Words+ subsidiary for 1Q08 decreased 13.8% to $545,000 from $632,000 in 1Q07. This decrease was due to our inability to ship Say-it! SAM Handheld Communicators during the first quarter after the supply of the previously discontinued PDA was exhausted, and before the new design was ready for release at the end of the quarter.

Ms. Beran continued: "Consolidated gross profit increased 47.6% to $1,498,000 in 1Q08 from $1,015,000 in 1Q07. R&D expense increased 23.0% to $226,000 in 1Q08 from $184,000 in 1Q07, primarily due to expansion of our Life Sciences staff. Consolidated SG&A increased 22.9% to $930,000 in 1Q08, compared to $757,000 in 1Q07; however, as a percentage of sales, SG&A decreased from approximately 52% to approximately 47%. The major increases in expenses were travel, investor relations, accrued bonus to the corporate Secretary, salaries, and payroll-related expenses such as health insurance, 401K, and payroll taxes, which outweighed decreases in commissions, telephone, supplies, and printer rental.

"Net income before taxes for 1Q08 increased 332% or $311,000 to $405,000 compared with $94,000 in 1Q07. First quarter earnings were impacted by a provision for income taxes of $162,000, of which $37,000 was accrued as a payable. Consolidated net earnings for 1Q08 tripled to $243,000, or $0.013 per diluted share, as compared to $73,000, or $0.004 per diluted share for 1Q07, even after allowing for a 7.8% increase in the number of fully diluted shares. Cash at the end of 1Q08 was $4,584,000, up more than double from $2,103,000 at the end of 1Q07. We believe shareholder equity is one of the best indicators of a company's growth. Our shareholder equity at the end of 1Q08 increased to $8,075,000, up 40.3% from $5,755,000 at the end of 1Q07, and up 5.3% from $7,665,000 at the beginning of the fiscal year 2008."

Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: "Simulations Plus continues as a financially strong, steadily growing, debt-free company with best-in-class products and outstanding customer relationships. Our Life Sciences team continues to grow and to receive recognition from our industry peers worldwide. Our subsidiary business struggled a bit during the first quarter with the inability to accept orders for our handheld communication system, but our new design has now been released and shipments have been going out the door since the last few days of the first fiscal quarter. Going forward this fiscal year we are optimistic about our prospects for continued strong growth. We're also optimistic about our $750,000, two-year, Phase II follow-on Small Business Innovation Research proposal to the National Institutes of Health, and we expect to be announcing some important new collaborations in the near future. We continue to work hard to identify, research, and close strategic acquisitions that will strengthen both the pharmaceutical and the disability products businesses, and we hope to be able to announce results in the near future."

[la-onda]

Simulations Plus Reports First Quarter FY2008 Financial Results
Monday , January 14, 2008 09:14ET

LANCASTER, Calif., Jan 14, 2008 (BUSINESS WIRE) -- Simulations Plus, Inc. (Nasdaq:SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported its financial results for the first quarter of fiscal year 2008 (1Q08) ended November 30, 2007.

Ms. Momoko Beran, chief financial officer of Simulations Plus, stated: "Consolidated revenues for 1Q08 were $1,984,000, an increase of 36.2% from $1,456,000 in the first quarter of fiscal year 2007 (1Q07) and a new record for first quarters. A large pharmaceutical software order that had been received in the second quarter last year came in during the first quarter this year; however, pharmaceutical revenues would have exceeded last year's first quarter even without that order. First quarter revenues from pharmaceutical software and services increased 74.5% to $1,438,000 from $824,000 in 1Q07. First quarter revenues for our Words+ subsidiary for 1Q08 decreased 13.8% to $545,000 from $632,000 in 1Q07. This decrease was due to our inability to ship Say-it! SAM Handheld Communicators during the first quarter after the supply of the previously discontinued PDA was exhausted, and before the new design was ready for release at the end of the quarter.

Ms. Beran continued: "Consolidated gross profit increased 47.6% to $1,498,000 in 1Q08 from $1,015,000 in 1Q07. R&D expense increased 23.0% to $226,000 in 1Q08 from $184,000 in 1Q07, primarily due to expansion of our Life Sciences staff. Consolidated SG&A increased 22.9% to $930,000 in 1Q08, compared to $757,000 in 1Q07; however, as a percentage of sales, SG&A decreased from approximately 52% to approximately 47%. The major increases in expenses were travel, investor relations, accrued bonus to the corporate Secretary, salaries, and payroll-related expenses such as health insurance, 401K, and payroll taxes, which outweighed decreases in commissions, telephone, supplies, and printer rental.

"Net income before taxes for 1Q08 increased 332% or $311,000 to $405,000 compared with $94,000 in 1Q07. First quarter earnings were impacted by a provision for income taxes of $162,000, of which $37,000 was accrued as a payable. Consolidated net earnings for 1Q08 tripled to $243,000, or $0.013 per diluted share, as compared to $73,000, or $0.004 per diluted share for 1Q07, even after allowing for a 7.8% increase in the number of fully diluted shares. Cash at the end of 1Q08 was $4,584,000, up more than double from $2,103,000 at the end of 1Q07. We believe shareholder equity is one of the best indicators of a company's growth. Our shareholder equity at the end of 1Q08 increased to $8,075,000, up 40.3% from $5,755,000 at the end of 1Q07, and up 5.3% from $7,665,000 at the beginning of the fiscal year 2008."

Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: "Simulations Plus continues as a financially strong, steadily growing, debt-free company with best-in-class products and outstanding customer relationships. Our Life Sciences team continues to grow and to receive recognition from our industry peers worldwide. Our subsidiary business struggled a bit during the first quarter with the inability to accept orders for our handheld communication system, but our new design has now been released and shipments have been going out the door since the last few days of the first fiscal quarter. Going forward this fiscal year we are optimistic about our prospects for continued strong growth. We're also optimistic about our $750,000, two-year, Phase II follow-on Small Business Innovation Research proposal to the National Institutes of Health, and we expect to be announcing some important new collaborations in the near future. We continue to work hard to identify, research, and close strategic acquisitions that will strengthen both the pharmaceutical and the disability products businesses, and we hope to be able to announce results in the near future."

[la-onda]

Q1 call Q&A:

Question-and-Answer Session

Operator

(Operator Instructions) We will go first to Mr. Howard Halpern at Taglich Brothers.

Howard Halpern – Taglich Brothers

I'll dive in on a little bit about the shift in the revenues from the second quarter into the first quarter. Based on what you are seeing because last year in the pharmaceutical software area you did about $1.8 million in revenue. Do you believe that you will be able to grow that number even with that shift?

Walter S. Waltosz

I am not sure where your $1.8 million comes from. Last year we did over $5 million in pharmaceutical.

Howard Halpern – Taglich Brothers

No, for the second quarter.

Walter S. Waltosz

Oh, for the second quarter. Well we haven't said anything publicly about the second quarter but, the second quarter is looking very good at this time. I will leave it at that.

Howard Halpern – Taglich Brothers

Okay, so then with just my general math calculations and I know there's seasonality in the quarter, based on the first quarter increasing by $3 million year-over-year on a whole. On average you have to do in excess of $3 million dollars per quarter. Do I have that math correct?

Walter S. Waltosz

Yes. We did just under $9 million last year. So, we would have to do just under $12 million and in order to that we would have to be up on average $750 per quarter.

Howard Halpern – Taglich Brothers

I know that the third quarter normally tends to be seasonally strong based on past history at least.

Walter S. Waltosz

First quarter is almost always is the lowest. Not always but almost always the lowest.

Howard Halpern – Taglich Brothers

You know I think we have talked about it before but, the consulting contracts it is sort of getting your name out there and it is almost as good as marketing too. Have you seen recently conversions into customers buying the product?

Walter S. Waltosz

Yes. That's the good news and the bad news. The good news is that when they do license the product it becomes renewed year-after-year. The bad news is that we lose the consulting income. You can't have both. Once you teach them to use the product on their own then they are off on their own. It's a very good entrée, it's a good point you make there. Once we work with the customer and they see, not just what the product does but the thinking process and how to apply it to different kinds of analysis then they get comfortable with it and they start to think, "Well gee, why should we pay these guys to consult? We'll just license the software and do it ourselves." And, that is a good thing.

Operator

We have a question now from Dick Mills a private investor.

Dick Mills – Private Investor

Kind of almost a trivia question, I guess, the year ending August, why did you do that? And, have you considered going to a calendar year ending in December?

Walter S. Waltosz

Well when we started Words+ in 1981 we incorporated in September of that year and so we made that the beginning of our fiscal year and we just kind of stuck with that ever since. When we founded Simulations Plus we incorporated Simulations Plus in July of that year so we said, "Hey we're coming up on the fiscal year beginning for Words+. Let's just make them the same." There are some advantages, we end up hitting our auditing firms when they are not as busy as we would if we used the calendar year and everybody's doing there tax returns at the same time. We have a little bit of advantage that way. But, that is really why, it just kind of was tradition from 1981 with Words+.

Operator

(Operator instructions) We will go next now to Mr. Frank Gristina at MicroCapital

Frank Gristina – MicroCapital

I was hoping you could help those of us that are trying to drive revenue by explaining, I guess, in the Simulations revenue, what percent of that, you have been doing this for quite a while, what percentage of that would be renewal of licenses versus new seats sold? Is that something you can give us color on?

Walter S. Waltosz

Let me check with my CFO. Do you have an estimate for new licenses as opposed to renewals approximate in terms of revenue? She says it's probably our marketing and sales department that would be the better one to reply to that. But what you can typically see from year-to-year our renewals are very, very high. They are well over 90% typically. We do give a renewal discount but, in the majority of cases that I have seen, even with the discount we end up with a higher license fee because more seats are added or more software licenses are added for different programs that weren't licensed in the first year. So by and large the growth that you see, I would say that the new licenses taken by existing customers probably balances out the renewal discount to some extent. So, most of what you see in increases is going to be from new business from companies or department within very large companies that were not licensing software the year before.

Frank Gristina – MicroCapital

Okay. Just in terms of you have so many different products with different price points, is there any way that you can either give us an idea of how many active licenses you have, in terms of seats? Or, kind of an average AST for the difference seats?

Walter S. Waltosz

It is a little difficult to do that because some of the licenses are site licenses and so they're essentially unlimited, as many people that want to log on. But I would say what I tend to count is number of customers and even that is a bit misleading because Pfizer or GlaxoSmithKline or Lilly; any of the large companies count as one customer and yet they may have four, five or six sites and each site they may have 10 to 50 people working on projects that use our software. But, I would say it is probably reasonable to say that there are around 100 companies total, somewhere in that neighborhood and probably I am going to guess 500 users overall. Just to pull a number out of the air.

Frank Gristina – MicroCapital

Okay. I will take your guess out of the air over mine. And then, can you just in terms of the market size, again you are adding products and that is going to open up new markets but, I mean if you have 100 companies doing R&D and using these different seats what do you think the real addressable market is in terms of how many companies could you sell one or all of these products to over the next five years?

Walter S. Waltosz

Yeah, that is something that we, over the years we have kind of hesitated to answer but I think our confidence is building now because we are seeing so many of these smaller companies coming in now for initially for consulting work or sometimes coming right into a software license. Companies that we may not have even heard there name a year or two ago and now we have a relationship with them and these are world wide. These are in Asia, Europe and the United States.

Years ago we looked at something called the Atlas Directory, I have referred to it before in conference calls and there were 3,600 or something like that, firms that were in businesses either biotech or drug delivery and formulation companies or actual drug companies. And so if you count all of those and figure probably 20% maybe would be a reasonable number that might end up being able to use one or more of our software products you would see that we have just really scratched the surface. We have a long way to go. Now, the size of the company does make a difference but what we have found now is that the smaller companies are beginning to realize that these in silico tools are tremendous equalizers. They can develop analysis or design new drugs almost as fast as the big guys if they have the right piece of software and the expertise and the computing horsepower to run the programs. I think that is why we are seeing more and more adoption of the in silico or the computer based methods by the smaller companies. They are finally recognizing that it is not really an expense it is something that pays for itself.

Frank Gristina – MicroCapital

Great and last question, I mean when you think about you just said 20% of the directory.

Walter S. Waltosz

That came out of the same air as the other number.

Frank Gristina – MicroCapital

You would think that those are companies that are actually doing drug research and development. Out of that Atlas I imagine there are companies that probably don't develop or try to formulate new drugs. Is that how you are getting the 20%?

Walter S. Waltosz

Yes and that is a totally, totally wild guess. I can't substantiate that at all. It's just a feeling that when we look at all the companies that we see, you see a lot of companies that are supplying different kinds of equipment or supplies and stuff and obviously they are not going to use this type of software. But, just kind of a gut feel just looking at companies names that pop up in the different newsletters that I get, I would say about a fifth of them maybe are the ones that would be doing the kind of work where if we can convince them, they would be potential users of software.

Operator

We go now to Fred Milligan at Sanders Morris Harris

Fred Milligan – Sanders Morris Harris Group Inc.

With capitalized computer software development costs and the amortization of that, how much does that come to in a quarter? And could you break that up because potentially helps in regards to determining cash flow.

Walter S. Waltosz

[Inaudible] capitalized software developing costs per quarter. I am asking my CFO now if she has got that handy. I am finding that on the computer here. While she is looking that up let me point out for those that may not be familiar with this, when you develop new software tools some of the work that we do is ordinary maintenance, bug fixes or minor improvements and that is expense. When you are developing a new capability either within an existing program or brand new program, if it's a new capability once management has established that what you are doing is technically feasible, you know it can be done you just have to do it then, you can begin to capitalize the labor and so it becomes a capital asset. Until the time that that new capability is offered for sale and then you begin to amortize that and you can't capitalize that anymore unless you are developing something else that is a new capability.

You also have in this category acquired capitalized software development costs. So, when we did the Bioreason and Sage Informatics acquisitions in the fall of 2005 there was a certain amount of a couple $100,000 or so as I recall that also went into that capitalized software development asset. And, those began to be written down right away of course because as soon as we acquired the products we were selling them. So, we have in the asset itself right now we have a mix of both labor of our own that is capitalized and then the Bioreason acquisition capitalized assets.

So, for this quarter we looked at about $106,000 for Simulations Plus for the pharmaceutical side and about $10,000 for Words+ as the amortized part of the capitalized software development cost.

Fred Milligan – Sanders Morris Harris Group Inc.

Is that a [inaudible] quarter?

Walter S. Waltosz

Yes.

Fred Milligan – Sanders Morris Harris Group Inc.

Okay. You mentioned the R&D credit, tax credit that you get. What does it amount to roughly?

Walter S. Waltosz

Well it depends on the year and it depends on the law. They change the law every time they renew it. The house HR 2138 I think it is, that is under consideration now has proposed to make it up to 20% and permanent.

Fred Milligan – Sanders Morris Harris Group Inc.

20% of the R&D expenses?

Walter S. Waltosz

That would be 20% of the R&D expenses over a base. So, you have a base that you calculate. Originally, I think the base was calculated based on several years back in the 1980's if you were in business then, if not then you used an average over a certain period of years since you had started your business. But, the law changes every time they renew it and we just have to wait. Again, it is expected they always have done it for 25 years but more than half the time they have been late.

Fred Milligan – Sanders Morris Harris Group Inc.

On another subject, would it make any sense you mentioned consulting and actually over the last few years consulting has become a bigger part of the story, actually. Does it make any sense to break that out in terms of what the consulting fees are on a quarter-by-quarter basis?

Walter S. Waltosz

We haven't thought about that. You mean just for reporting purposes?

Fred Milligan – Sanders Morris Harris Group Inc.

You know for reporting to shareholders.

Walter S. Waltosz

I will talk with our CFO about that and see if it makes any sense.

Fred Milligan – Sanders Morris Harris Group Inc.

That would give you some idea as to the potential coming out of it.

Operator

(Operator Instructions) Walter it appears that we have no further questions this afternoon. Sir, I would like to turn the conference back to you for any closing or additional remarks.

Walter S. Waltosz

Okay well just to remind everyone I do use PowerPoint slides as a set of speaking notes for the conference call and if you would like a copy of those you can request those either by calling the company or just send us an email at [email protected]. Thank you all for attending and I'll see you at the end of next quarter.

[la-onda]

Q1 slides 

[la-onda]

fyi:
fyi:
Key Investment Considerations:
We are reiterating our Speculative Buy rating on shares of Simulations Plus, Inc. (NasdaqCM: SLP), as we are forecasting positive growth trends for fiscal 2008 and believe those trends will continue into fiscal 2009. We are lowering our twelve-month price target to $5.00 per share versus our prior target of $6.40 per share (primarily due to a contraction of multiples).

Our price target is based on our sales and EBITDA forecasts for the next four quarters.
On December 11, 2007, SLP announced that a top three pharmaceutical company issued a purchase order to renew their global software license and to convert it from a single year license to a multi-year license. Management stated that it believes this multi-year multi-site renewal commitment confirms that this company has embraced SLP's technology so
that their research scientists will use the software for another 3 years. On January 14, 2008, the Company announced first quarter fiscal 2008 net sales increased by 36.3% to $1.984 million versus $1.456 million in Q1 of fiscal 2007. Top line growth was led by pharmaceutical
software sales, which increased on a year-over-year basis by 74.5%. Net income increased to $0.243 million or $0.01 per diluted share versus $0.073 million or $0.00 per diluted share in the same period last year.
We are adjusting our estimates for fiscal 2008, given current licensing trends, renewals, potential for new customers, growth of contract services, and Management's public guidance. Our revised net sales and net income forecasts are $11.819 million (prior was $11.540)
and $2.303 million or $0.12 per diluted share (prior was $2.275 million or $0.12 per dilute share. Also, we are issuing our initial forecast for fiscal 2009, which calls for net sales of $15.335 million and net income of $3.235 million or $0.17 per diluted share.

http://www.knobias.com/research.pdf?id=12654

[la-onda]

from yahoo:

Paul is a SLP stock holder since right after the IPO in 1997. Here
are his notes as posted on Yahoo... I did not attend.

Friday February 29th, 2008

Twas a beautiful day in Lancaster, CA.

There were no major revelations nor did Walt touch on the Q2 earnings.
He seemed even more careful than usual to avoid any topic that was not
clearly public information.

The slides he spoke from were very detailed and he said they would be
available from the company.

I jotted a few notes... but because of the slides I didn't take a lot.

1. The grant is looking good with a possible 750K over two years
available.

2. DDD Plus is taking hold and showing Q over Q increases.

3. Gastro Plus is working on adding eye drug dosing, nasal spray, oral
cavity absorbtion, and drug-drug interaction. I couldn't specify
exactly where each one is in the process.

4. The consulting service is very productive. It is leading to
licenses being sold, and improvements to the software. Walt outlined
the benefits of the sciense team working with the product on real
world applications and with varying data sets. It helps them to
experience what is user friendly and what can be improved. It also
stretches them when they encounter challenges they haven't seen
before. And they help scientists who don't recognize a pattern that
the SLP folks do because they have used the software themselves.

5. The new Word PDA is on line and selling well. It is very colorful
and looks "cool." The casing is an "in house" design.

6. New companies are calling to get information. Existing companies
are expanding their licenses. For the sake of booking several larger
companies are seeking 3-5 year purchase orders. Still booked one year
at a time.

7. Aquisitions for both the Pharma and the Word side are being
pursued. Only profit showing business will be aquired. No details were
given or even hinted at.

8. Cash well above 4.5 million. No debt.

9. Important collaborations are still in the works.

10. Walt addressed the split and the drop in the price. The split was
to address the issue of liquidity for the funds, etc. Walt joked that
a reverse split probably wouldn't be a good idea. They are just
commited to moving the company forward and growing the business. That
will take care of the share price. He is also aware that the tax
glitch cost them some market momentum.


Conclusion: SLP is a growing, debt free company, with cash in the
bank. They have 14 PHD's who are building relationships throughout the
research industry and thinking of non pharma industries to penetrate
with their various products. As well as improving current products and
working on new ones.

There are many things in the works... Walt isn't specifying.

With the overall economy taking a whipping it is evident that SLP is
growing and solid. The forward looking P/E is much lower than the
highs of this past year. I left the meeting with a very optimistic
sense of this companies future.

One of the intangibles I took away was Walt sharing how scientists
from companies around the world have personal relationships with the
SLP PHD's. They email questions, concerns, suggestions, etc. I know
for myself that support is a huge factor when I am frustrated with my
computer. How much more does it mean to a scientist in Japan, England,
etc. to email a question to SLP and have another PHD shoot back an
answer? That is just one of the strong "vibes" that you get from
sitting at the shareholder meeting. There is a credibility to what
these people are doing that the stock price doesn't reflect.

from TB:

Key Investment Considerations:
We are reiterating our Speculative Buy rating on shares of Simulations Plus, Inc. (NasdaqCM: SLP), as we are forecasting positive growth trends for fiscal 2008 and believe those trends will continue into fiscal 2009.

We are lowering our twelve-month price target to $5.00 per share versus our prior target of $6.40 per share (primarily due to a contraction of multiples). Our price target is based on our sales and EBITDA forecasts for the next four quarters.

On December 11, 2007, SLP announced that a top three pharmaceutical company issued a purchase order to renew their global software license and to convert it from a single year license to a multi-year license. Management stated that it believes this multi-year multi-site renewal commitment confirms that this company has embraced SLP's technology so that their research scientists will use the software for another 3 years.
On January 14, 2008, the Company announced first quarter fiscal 2008 net sales increased by 36.3% to $1.984 million versus $1.456 million in Q1 of fiscal 2007. Top line growth was led by pharmaceutical software sales, which increased on a year-over-year basis by 74.5%. Net income increased to $0.243 million or $0.01 per diluted share versus $0.073 million or $0.00 per diluted share in the same period last year.
We are adjusting our estimates for fiscal 2008, given current licensing trends, renewals, potential for new customers, growth of contract services, and Management's public guidance. Our revised net sales and net income forecasts are $11.819 million (prior was $11.540) and $2.303 million or $0.12 per diluted share (prior was $2.275 million or $0.12 per dilute share. Also, we are issuing our initial forecast for fiscal 2009, which calls for net sales of $15.335 million and net income of $3.235 million or $0.17 per diluted share.

http://www.knobias.com/research.pdf?id=12654

Reason for drop:
SLP was sold  from Louis Navellier's Emerging Growth Portfolio

I have bought SLP @ 2.33
cheers
O.

[la-onda]

recovering........

[la-onda]

Simulations Plus' CEO Addresses Investor Inquiries
Friday , March 07, 2008 09:15ET

LANCASTER, Calif., Mar 07, 2008 (BUSINESS WIRE) -- Simulations Plus, Inc. (Nasdaq:SLP), a leading provider of software for pharmaceutical discovery and development, today provided an update on the company's operations and financial status in response to numerous investor requests in light of the current stock price.

Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: "It is not our policy to issue press releases in response to market fluctuations. However, the recent market activity has prompted a significant number of investors to contact the company requesting a public comment, so we are making an exception at this time.

"First, let me say that there is no adverse event or condition within the company that has precipitated the recent Simulations Plus' stock price decline. We continue to aggressively pursue our growth strategies which include the acquisitions we have mentioned in earlier public statements and major updates to three of our pharmaceutical software products: GastroPlus(TM), ADMET Predictor(TM), and ClassPharmer(TM). The updates to these three programs, which continue to be the leading software of their kind in the industry, are on schedule and include significant capability enhancements. Simulations Plus is a growing company with proprietary technologies that serve the pharmaceutical industry where we believe growth opportunities abound. The application of simulation and modeling technologies in the pharmaceutical industry is decades behind other industries, and this provides the opportunity for us to fill what we believe is a severe unmet need."

Ms. Momoko Beran, chief financial officer of Simulations Plus, added: "Although second quarter results will not be reported until April, I can say at this time, in spite of the large software reorder that was received in the first quarter of this year rather than in the second quarter as it was last year, our pharmaceutical software and services revenues and the company's total revenues made up for a large portion of that order. As a result, for the first six months, revenues are ahead of last year's first six months. Final numbers will be provided in the quarterly report which we expect to be released not later than April 14. The company's cash has now increased to over $5.5 million and of course, we remain debt-free. We have hired a tax consultant and preliminary indications are that we may have overestimated our tax burden for this year, and that we may recover tax credits from previous years, although there can be no assurances at this time that either will materialize."

[la-onda]

 
I will continue to hold....

"Although second quarter results will not be reported until April, I can say at this time, in spite of the large software reorder that was received in the first quarter of this year rather than in the second quarter as it was last year, our pharmaceutical software and services revenues and the company's total revenues made up for a large portion of that order. As a result, for the first six months, revenues are ahead of last year's first six months. Final numbers will be provided in the quarterly report which we expect to be released not later than April 14. The company's cash has now increased to over $5.5 million and of course, we remain debt-free. We have hired a tax consultant and preliminary indications are that we may have overestimated our tax burden for this year, and that we may recover tax credits from previous years, although there can be no assurances at this time that either will materialize."

[la-onda]

SLP update:

1)
Simulations Plus' Software Selected Application of Choice by Premier Pharmaceutical Company
Thursday , April 03, 2008 09:15ET

LANCASTER, Calif., Apr 03, 2008 (BUSINESS WIRE) -- Simulations Plus, Inc. (NASDAQ:SLP), a leading provider of software for pharmaceutical discovery and development, today announced that the pharmacokinetics, dynamics, and metabolism science board at a top three pharmaceutical company named its GastroPlus(TM) software an "application of choice." The client also issued a purchase order for additional software licenses at several of its research sites, which expands the number of users in their existing global multi-year software license agreement that began in December 2007.

Ron Creeley, vice president of marketing and sales for Simulations Plus, said: "This is a clear indication of the acceptance of Simulations Plus' software at the highest scientific and business levels of this top three company. Our achievement of designated vendor status with this company means our software is more widely available to research scientists at the organization, and streamlines purchasing procedures whenever the company obtains products or services from Simulations Plus."

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: "As pharmaceutical companies face a significant number of patent expirations in the near future, there is a need to become more aggressive in research and development to fill the pipeline, sometimes with reduced R&D staff. Productivity tools like GastroPlus(TM), ADMET Predictor(TM), ClassPharmer(TM), and DDDPlus(TM) leverage the expertise of the industry's scientific teams. We believe that the difficulties facing some parts of the pharmaceutical industry will result in greater use of such tools as managers realize that the savings in time and money that can be achieved through their application vastly exceeds the cost of obtaining and learning to use them."

2)
SLP: Receives Purchase Order from FDA to Renew Sim Software License
Wednesday, April 09, 2008 09:20ET

By Michael Cavallaro, [email protected]

Simulations Plus, Inc. (NASDAQ:SLP) has received a purchase order from the FDA to renew one of the licenses for the Company's GastroPlus simulation software and to add the newly introduced ADMET Predictor Module for GastroPlus. Ron Creeley, vice president of marketing and sales for Simulations Plus, said: "This module will allow FDA scientists to load molecular structures directly into GastroPlus, which will then automatically invoke the ADMET Predictor Module to calculate the inputs needed by GastroPlus to simulate absorption for each of the molecules. The ADMET Predictor Module calculates these properties from molecular structure with the same top-rated structure-to-property prediction engine used in our full-version ADMET Predictor program, providing best-in-class estimates for physicochemical and biopharmaceutical properties for each molecule. GastroPlus takes these predictions and automatically builds a database with supporting tables to save scientists considerable time and effort."

chart:

[la-onda]

Simulations Plus and Northeastern University to Collaborate on Solubility Measurements
Wednesday, May 28, 2008 09:15ET

LANCASTER, Calif., May 28, 2008 (BUSINESS WIRE) -- Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, announced that it has signed an agreement with Northeastern University to fund a research project that will measure solubilities in biorelevant fluids.

Dr. John Crison, director of life sciences for Simulations Plus, said: "The solubility of new drug molecules is usually measured in laboratory experiments either in pure water or in buffer solutions. These are not the same as the fluids in the gastrointestinal tracts of humans or other animals, and it's important for scientists to know what level of solubility to expect when drugs are dosed in animals and humans. In fact, one of the critical inputs to our GastroPlus(TM) software is the solubility of the drug at different values of pH. For ionizable compounds, the solubility can change by many orders of magnitude as pH changes. GastroPlus accounts for this by calculating the change in solubility as pH changes in different parts of the gastrointestinal tract."

Dr. Crison continued: "But pH is only one factor affecting solubility. Fluids in the human gastrointestinal tract contain a number of substances that can also affect solubility in complex ways. This study will measure the solubility of approximately 200 different drugs in simulated gastric fluid (SGF), fasted state simulated intestinal fluid (FaSSIF), and fed state simulated intestinal fluid (FeSSIF). These simulated biorelevant fluids include representative amounts of other substances that influence in vivo solubility."

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: "Solubility is a major concern in the development of many new drugs, so we're very pleased to begin this collaboration with Dr. Rebecca Carrier and her lab at Northeastern University. Dr. Carrier was formerly at Pfizer and while there she developed considerable expertise in the study of solubility and dissolution. We believe that with the data that will be generated from this study, we will be in a better position to estimate the solubility and dissolution of new drug molecules in various parts of the gastrointestinal tract. We also expect to build a model to adjust solubilities measured in typical lab experiments to those that would be experienced in vivo, and to include that model as another valuable prediction in our ADMET Predictor software. This is the first such investment we've made. We're looking for other such investment opportunities to further the science in our field while enhancing our products and services."

Ron Creeley, vice president of marketing and sales for Simulations Plus added: "In addition to the value provided to our own software and services, the unique database that will be developed under this collaboration will be a product in its own right. We believe many companies will be interested in licensing the database in order to better understand how in vivo solubility differs from that in buffer solutions. Especially for the many smaller companies who would not want to invest the entire amount needed to complete such a study, licensing the results for a much lower price will make economic sense."

[la-onda]

 Version 4.5 of its ClassPharmer software released by Simulations Plus Inc
Tuesday , June 03, 2008 07:18ET

Jun 03, 2008 (TELECOMWORLDWIRE via COMTEX) -- Simulations Plus Inc (NASDAQ: SLP), which designs and develops software for use in pharmaceutical research and education and provides contract research services to the pharmaceutical industry, revealed yesterday (2 June) that for analysis of chemical libraries and design of new molecular structures, it has released Version 4.5 of its ClassPharmer software.

ClassPharmer helps chemists to observe relationships between the real structures and their measured properties and to use those to create and change virtual molecules to identify the best ones for the next iteration of synthesis and tests, commented Dr David Miller, team leader for Discovery Informatics within the company.

No pricing details were revealed. 

&

SLP: Jumps +11.79%; Vol +249%; Last 90 Min of Trading
Thursday , June 05, 2008 16:22ET

During the last 90 minutes of today's session, shares of Simulations Plus Inc (NasdaqSC: SLP) demonstrated a strong UPWARD close relative to its 13:30 ET statistics. "Strong Closers" are determined by proprietary Knobias calculations performed during the last segment of each trading day.

sym: SLP       @13:30 ET        @CLOSE      % CHANGE
----------   -----------   -----------  ------------
PRICE              $1.95         $2.18       +11.79%
VOLUME            48,984       171,187      +249.48%
#TRADES              121           426      +252.07%
DAY-HI             $1.95         $2.30       LATE-HI
DAY-LO             $1.85         $1.85           N/A

TODAY'S RAiDAR HEADLINES for SLP:

06/05/2008 14:25 SLP: Volume Spike; 79% > 20-adsv, Stock +19.79% - knobias

any feedback from 3SoF community?

[la-onda]

Simulations Plus Releases Major Software Update for Its Top Rated Predictive Software
Wednesday, July 02, 2008 09:25ET

LANCASTER, Calif., Jul 02, 2008 (BUSINESS WIRE) -- Simulations Plus, Inc. (NASDAQ:SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, announced that it has released Version 3.0 of its best-in-class ADMET Predictor software for predicting properties of molecules from only their structures.

Dr. Robert Fraczkiewicz, team leader for ADMET (Absorption, Distribution, Metabolism, Excretion and Toxicity) Cheminformatics for Simulations Plus, said: "This major upgrade to ADMET Predictor provides 14 new predicted properties as well as new retrained models for our previously top-ranked predictions. New predictions include eight models for metabolic inhibition and five for intrinsic clearance that were added to our previously released Enslein Metabolism Module. The initial Enslein Metabolism Module predicted rate of metabolism by certain enzymes, but not the potential for inhibition of metabolism that can cause significant drug-drug interactions with other drugs that are metabolized by the same enzymes. We've also added a new environmental toxicity prediction based on data originally generated by the U.S. Environmental Protection Agency."

Dr. Fraczkiewicz continued: "In ADMET Predictor 3.0, we've incorporated the innovative technology we developed under last year's SBIR grant and subsequent internal R&D to rapidly calculate partial atomic charges. ADMET Predictor's new partial atomic charge calculations provide over 50 new descriptors that serve two purposes. One is to train mathematical models that correlate predicted properties with descriptors. The second is to provide a new visualization tool that lets chemists see charge distributions of various kinds directly on a drawing of the molecule - an important tool that gives chemists insight into why molecules behave the way they do and how to modify their structure to achieve certain goals. In the past, calculating these charge descriptors would have required as much as a day or more per molecule. Our breakthrough methodology calculates these charges at the rate of hundreds of thousands of molecules per hour, with a similar level of accuracy."

"In addition, we improved ADMET Modeler to better select descriptors during model building," added Dr. Fraczkiewicz. "This resulted in new models with significantly fewer descriptors, an important development because models that cover the widest range of new chemistry are generally those with the smallest number of descriptors. Another enhancement to ADMET Predictor is the addition of a state-of-the-art graphics engine called Miner3D(TM), which allows the scientist to visualize multidimensional relationships among properties and descriptors quickly and conveniently."

Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: "In silico (computer) property predictions provide chemists with the fastest possible means of filtering out poor molecules from large molecular libraries as they search for new medicines, and now ADMET Predictor's top-ranked predictions are better and cover even more properties than previous versions. The tight integration we now have between ADMET Predictor and our ClassPharmer(TM) software product means that the de novo design capabilities of ClassPharmer will now also be enhanced, allowing chemists to automate the generation and screening of new molecular structures to a new level. The potential number of new drug-like molecules is said to be more than the number of grains of sand in the world, yet most of them will never become drugs because of undesirable properties. ADMET Predictor and ClassPharmer are at the forefront of their technologies for increasing the productivity of pharmaceutical scientists in this exceedingly difficult task."

[la-onda]

looking for a quick 10 to 30% profit, bullish chart imho