EX-99.2
3
simulations_8k-ex9902.htm
PP PRESENTATION FOR THE EARNINGS CONFERENCE CALL ON 11/09/06
PP Presentation for the Earnings Conference Call on 11/09/06
Exhibit
99.2
Investor
Relations Conference - Call November 9, 2006
1
Introduction
and Welcome Why preliminary results CEO out of country next week - Agenda
-Fiscal year 2006 summary -Strategy going forward -Guidance going forward
-
Questions and Answers
2
Fiscal
year 2006 Summary - Gross revenues = $5.855 MM (up 23%) - SG&A = $2.97 MM -
R&D = $0.45 MM Income Before Income Taxes = $0.89 MM - Net Earnings = $0.68
MM ($0.083/share) (up 156%) - Cash flow = ($69,000) - after spending about
$800,000 on acquisitions - so most the cash was recovered during the same
fiscal
year Acquisition: Certain assets of Bioreason, Inc. from its Acquisition:
Certain assets of Bioreason, Inc. from its creditors in November 2005 -
Staffing: Life Sciences team nearly doubled and still growing
3
Progress
- - ADMET Modeler Predictor/ADMET Modeler - - Merged into single program
- New
model to predict binding affinity of potential new drug molecules to HIV
integrase to be released soon - Method for rapid calculation of a certain
type
of electrical charge developed charge developed - speed reduced from over
700
CPU hours to about 10 seconds with acceptable accuracy - Additional state-of-the
the-art modeling methods incorporated into art modeling methods incorporated
into ADMET Modeler -Developed method for visualization of input sensitivities
for complex models to guide chemists in how to modify molecules complex models
to guide chemists in how to modify molecules to improve their properties
Demonstrated combined use of ADMET Predictor and ClassPharmer together
4
Progress
- 2 ClassPharmer - -Acquired as version 3.5 - slow, limited - slow, limited
-
Merged ClassPharmer and ChemTK to produce ClassPharmer 4.0 - Dramatic speed
increase Able to handle much larger number of molecules Version 4.1 released
in
____, Version 4.2 will release soon - Very successful first year renewals
+ new
customers - renewals + new customers DDDPlus - - Significant improvements
over
version 1.0 completed - Polymer matrix formulations More accurate physical
model
of dissolution Addition of surfactant effects Optimization of in
vitro experiments
to better mimic experiments in
vivoin vivo
- -Evaluation by major pharma with subsequent license with subsequent
license
5
Progress
- 3 - GastroPlus - - Flagship product and biggest money maker -- Becoming
a
standard part of studies in several major pharmaceutical companies -
pharmaceutical companies - Released version 5.0 in December 2005 added
physiologically based pharmacokinetics (PBPK) modeling - Particle size
distribution added in version 5.1 released in ____. - Numerous improvements
in
user convenience features completed Version 5.2 nearing
release
6
Progress
- 4 - Words+ subsidiary Added consulting marketing and sales manager - Expanded
U.S. sales force - SAM software migrated to PC SAM software migrated to PC's
from PDA Improved MicroCommPac (part of almost every (part of almost every
system) - New laptop provides improved margins on Medicare/Medicaid systems
-
Popular software voice synthesizer option added
7
Strategy
Going Forward Expand product line and services - - Pharmaceutical software
- New
functionalities for current products Completion of MembranePlus™ - Seeking
opportunities to partner or acquire new products - - Pharmaceutical consulting
services - Expanding Simulation Technologies team to handle growing demand
- -
Words+ subsidiary -Expanded platforms for SAM™ software - Internationalize
software (French, German) to expand markets - Forge additional collaborative
relationships within academia, government, and industry organizations Continue
aggressive marketing and sales activities begun last year in both companies
8
Summary
- Company is strong and growing - No debt -Strong cash flow and consistent
growth in shareholders' equity demonstrates real growth Cash spent on
acquisitions was substantially replaced in one year Growing dedicated and
extremely talented workforce working to grow the product lines in both
businesses Expanding marketing and sales efforts in both businesses Guidance
for
FY2007: We expect
revenues
to be > $6.8 MM Slides available by eSlides available by e-mail on request
through info@simulations- plus.com
9
Questions?
10

EX - 99 . 2 3 simulations _ 8k - ex9902 . htm PP PRESENTATION FOR THE EARNINGS CONFERENCE CALL ON 11 / 09 / 06 PP Presentation for the Earnings Conference Call on 11 / 09 / 06 Exhibit 99 . 2 Investor Relations Conference - Call November 9 , 2006 1 Introduction and Welcome Why preliminary results CEO out of country next week - Agenda - Fiscal year 2006 summary - Strategy going forward - Guidance going forward - Questions and Answers 2 Fiscal year 2006 Summary - Gross revenues = $ 5.855 MM ( up 23 % ) - SG & A = $ 2.97 MM - R & D = $ 0.45 MM Income Before Income Taxes = $ 0.89 MM - Net Earnings = $ 0.68 MM ( $ 0.083 / share ) ( up 156 % ) - Cash flow = ( $ 69,000 ) - after spending about $ 800,000 on acquisitions - so most the cash was recovered during the same fiscal year Acquisition : Certain assets of Bioreason , Inc . from its Acquisition : Certain assets of Bioreason , Inc . from its creditors in November 2005 - Staffing : Life Sciences team nearly doubled and still growing 3 Progress - - ADMET Modeler Predictor / ADMET Modeler - - Merged into single program - New model to predict binding affinity of potential new drug molecules to HIV integrase to be released soon - Method for rapid calculation of a certain type of electrical charge developed charge developed - speed reduced from over 700 CPU hours to about 10 seconds with acceptable accuracy - Additional state - of - the the - art modeling methods incorporated into art modeling methods incorporated into ADMET Modeler - Developed method for visualization of input sensitivities for complex models to guide chemists in how to modify molecules complex models to guide chemists in how to modify molecules to improve their properties Demonstrated combined use of ADMET Predictor and ClassPharmer together 4 Progress - 2 ClassPharmer - - Acquired as version 3 . 5 - slow , limited - slow , limited - Merged ClassPharmer and ChemTK to produce ClassPharmer 4 . 0 - Dramatic speed increase Able to handle much larger number of molecules Version 4 . 1 released in ____ , Version 4 . 2 will release soon - Very successful first year renewals + new customers - renewals + new customers DDDPlus - - Significant improvements over version 1 . 0 completed - Polymer matrix formulations More accurate physical model of dissolution Addition of surfactant effects Optimization of in vitro experiments to better mimic experiments in vivoin vivo - - Evaluation by major pharma with subsequent license with subsequent license 5 Progress - 3 - GastroPlus - - Flagship product and biggest money maker -- Becoming a standard part of studies in several major pharmaceutical companies - pharmaceutical companies - Released version 5 . 0 in December 2005 added physiologically based pharmacokinetics ( PBPK ) modeling - Particle size distribution added in version 5 . 1 released in ____ . - Numerous improvements in user convenience features completed Version 5 . 2 nearing release 6 Progress - 4 - Words + subsidiary Added consulting marketing and sales manager - Expanded U . S . sales force - SAM software migrated to PC SAM software migrated to PC 's from PDA Improved MicroCommPac ( part of almost every ( part of almost every system ) - New laptop provides improved margins on Medicare / Medicaid systems - Popular software voice synthesizer option added 7 Strategy Going Forward Expand product line and services - - Pharmaceutical software - New functionalities for current products Completion of MembranePlus ™ - Seeking opportunities to partner or acquire new products - - Pharmaceutical consulting services - Expanding Simulation Technologies team to handle growing demand - - Words + subsidiary - Expanded platforms for SAM ™ software - Internationalize software ( French , German ) to expand markets - Forge additional collaborative relationships within academia , government , and industry organizations Continue aggressive marketing and sales activities begun last year in both companies 8 Summary - Company is strong and growing - No debt - Strong cash flow and consistent growth in shareholders ' equity demonstrates real growth Cash spent on acquisitions was substantially replaced in one year Growing dedicated and extremely talented workforce working to grow the product lines in both businesses Expanding marketing and sales efforts in both businesses Guidance for FY2007 : We expect revenues to be > $ 6.8 MM Slides available by eSlides available by e - mail on request through info @ simulations - plus.com 9 Questions ? 10