Simulations Plus Research Update Released

Published: Apr 19, 2013

New York,NY - On April 18, 2013, Taglich Brothers released an updated research report on Simulations Plus, Inc. (SLP) and reiterated a Speculative Buy rating with a 12-month price target of $5.45. The report noted the following key investment considerations:

• Increasing use of software tools and analytics for drug discovery and development is driving SLP’s growth. • The biosimulation (model-based prediction) technology market is projected to grow 18.5% annually, reaching $1.2 billion in 2017, up from $432 million in 2011.

• SLP has penetrated only 15% of the 1,000+ potential pharmaceutical and biotechnology customers, leaving ample revenue upside. Toxicology products, release of MembranePlus™ in FY13, and development of a new chemical entity molecular library could underlie further revenue upside into FY14.

• 2Q13 profit (reported 4/10/13) was $1.1 million or $0.06 per share, up from $839,000 or $0.05 per share, on an 11.8% sales increase to $3.1 million. 2Q13 results were in line with our projections. Net income was up due to a decrease in operating expenses of 9.7% reflecting easier comparisons with 2Q12, during which the company incurred acquisition related costs.

• We are maintaining our FY13 EPS projection of $0.18 per share on sales of $10.4 million (up $100,000). The increase in sales reflects 2Q13 results. Offsetting the increase in our sales forecast is a reduction in our gross margin projection to 84% from 84.8%.

• We are maintaining our FY14 EPS projection of $0.23 per share on 12.1% sales growth to $11.7 million (up $200,000). We anticipate a price increase on software offerings, traction gains by MembranePlus, and a total of 70 (new) customers, up from 65 in FY13 and 59 in FY12.

The full report can be viewed at

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Company Description:

Simulations Plus, Inc., based in Lancaster, California, is a developer of drug discovery and development software, which is licensed to and used in drug research by major pharmaceutical and biotechnology companies worldwide.

Taglich Brothers:

Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.

The Taglich Brothers' Equity Research department is dedicated to providing research reports that are informative, insightful and illuminating. Reports are designed to distill volumes of investment information into a concise, straightforward format so that busy professional investors can make informed investment decisions.


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Richard Oh


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