Friday, December 28, 2012 8:30:21 AM
Key Investment Considerations:
Maintaining Speculative Buy rating. Increasing (12-month) price target to $5.45 from $5.00 per share due to
improved sector valuation.
Profit growth will be driven by gross margin gains stemming from the purchase of a royalty agreement, high
margin simulation software sales, and funded collaborations, which carry a gross margin of over 86%.
Use of software tools and analytics for drug discovery and development is becoming more widespread within
the pharmaceutical and biotechnology industries due to reduced R&D budgets.
SLP has penetrated only 10% 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.
4Q12 income from continuing operations (reported 11-19-12) was $349,000 or $0.02 per share, up from $170,000 or
$0.01 last year, on a 14.9% sales increase to $1.6 million. 4Q12 sales and EPS were in line with our forecast.
Reduced our FY13 EPS projection by $0.03 to $0.19 on sales of $10.3 million (down $500,000). We anticipate
20 fewer new customers (60), a larger scientific team (3), and laboratory experiment expenses for development
of a second new chemical entity that was unanticipated earlier.
In FY14, we project 12.5% sales growth to $11.5 million and EPS of $0.23 per share. After four years of stable
pricing, we anticipate a price increase on software offerings, traction gains by MembranePlus, and a total of
70 (new) customers, up from 60 in FY13 and 43 in FY12.
Full report here:
http://www.taglichbrothers.com/TaglichTrack/Reports/simplus/simplus-12102012.pdf
Recent SLP News
- Simulations Plus to Participate in 21st Annual Craig-Hallum Institutional Investor Conference • Business Wire • 05/22/2024 12:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/20/2024 09:00:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/15/2024 08:56:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/15/2024 08:53:03 PM
- Simulations Plus Releases GastroPlus® X, The Next Generation PBPK/PBBM Modeling & Simulation Software • Business Wire • 05/15/2024 12:30:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/14/2024 08:24:31 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/14/2024 08:21:26 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 08:42:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 08:39:46 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/07/2024 08:20:42 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/07/2024 08:20:26 PM
- U.S. FDA Renews DILIsym® Software Licenses for 7th Year • Business Wire • 04/04/2024 12:30:00 PM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Simulations Plus Reports Second Quarter Fiscal 2024 Financial Results • Business Wire • 04/03/2024 08:34:00 PM
- U.S. Futures Dip in Pre-Market, May WTI and June Brent Crude Prices Edge Higher • IH Market News • 04/03/2024 11:11:59 AM
- Simulations Plus Announces Second Quarter Fiscal Year 2024 Earnings and Conference Call Date • Business Wire • 03/20/2024 08:06:00 PM
- Simulations Plus to Present at the KeyBanc Capital Markets Virtual Life Sciences & MedTech Investor Forum • Business Wire • 03/13/2024 12:30:00 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 03/06/2024 09:07:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:22:46 PM
- Simulations Plus and the University of Bath Awarded New FDA Grant • Business Wire • 03/05/2024 01:30:00 PM
- Simulations Plus Extends Collaboration with Major Toxicology Research Agency • Business Wire • 02/15/2024 01:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/13/2024 02:15:43 PM
- Simulations Plus Launches Corporate Development Initiative • Business Wire • 02/13/2024 02:15:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/12/2024 09:59:04 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/12/2024 09:01:30 PM
Avant Technologies Engages Wired4Tech to Evaluate the Performance of Next Generation AI Server Technology • AVAI • May 23, 2024 8:00 AM
Branded Legacy, Inc. Unveils Collaboration with Celebrity Tattoo Artist Kat Tat for New Tattoo Aftercare Product • BLEG • May 22, 2024 8:30 AM
"Defo's Morning Briefing" Set to Debut for "GreenliteTV" • GRNL • May 21, 2024 2:28 PM
North Bay Resources Announces 50/50 JV at Fran Gold Project, British Columbia; Initiates NI 43-101 Resources Estimate and Bulk Sample • NBRI • May 21, 2024 9:07 AM
Greenlite Ventures Inks Deal to Acquire No Limit Technology • GRNL • May 17, 2024 3:00 PM
Music Licensing, Inc. (OTC: SONG) Subsidiary Pro Music Rights Secures Final Judgment of $114,081.30 USD, Demonstrating Strength of Licensing Agreements • SONGD • May 17, 2024 11:00 AM