Yes, the strong US$$ does impact earnings. But, it seems to be a modest amount. For the Q ending November the amount was $7790 which represents a little bit over 1% of " Income from operations ". So it is real but doesn't look like it changes the big picture. You can see this amount identified as "Loss on currency exchange" by looking at the 10Q at the SEC web site.
sec dot gov/Archives/edgar/data/1023459/000101968715000187/slp_10q-113014.htm
Preliminary revenues for the three months ended February 28, 2015 were $4.544 million, compared to $3.081 million for the same period in 2014, this represents an increase of 47.5% or $1.462 million. $1.241 million of the 2QFY15 revenues increase is attributed to Cognigen Corporation, which was acquired at the beginning of the 2015 fiscal year.
There is an additional $250,000 in revenues that got pushed into the first week of the next quarter. This will be a nice bump for the following reporting period.
Go to the SLP web site and select "Events" and then " Conferences ". The SLP scientists will be attending 8 sessions this month... That's averaging 2 per week. There is something new as well...
"March 7-14 - IEEE Aerospace Conference 2015 in Big Sky, MT. Simulations Plus will be attending and presenting the following papers:
"Near Real-time Characterization of Unknown Missiles in Flight Using Computational Intelligence"
"Rapid Calculation of Missile Aerodynamic Coefficients Using Artificial Neural Networks"
And that's not all... Looking under the " Workshops " section there is a long itinerary all the way into October.
SLP continues to grow.
There was a lot of discussion at the time that the dividend was being considered. If I remember correctly the general consensus was that investors wanted Walt, the CEO, to use the money and his management skills to grow the company faster instead. I believe that Walt gave that route serious consideration given the fact that he has constantly been in discussions with potential acquisition candidates. The reason that there have not been more business acquisitions is because the criteria that has been set for a good fit makes them very difficult to find. Not only does the business need to " fit " the SLP model but it must also be available at a reasonable price and have promise to add to sales and earnings of the core SLP business. Walt is very conservative, which is evident by looking at the financial results. Prior to the Cognigen acquisition there were only about 23,000 shares issued for growing the business. Still today there is zero debt.
OK... So why not just hire a bunch of PhDs and tell them to go to work on growing the business. I'm certain that if it were that simple Walt would jump at the chance. The problem is the required set of skills necessary to produce the SLP offerings... A basic requirement is a person with a detailed understanding of chemistry, a serious dose of biology along with the math and analytical skills AND the ability/desire to create software models that produce meaningful results. SLP almost always has employment openings available for engineers and chemists that have the required skills... they are far and few between. And suppose that they could actually come up with a significant number of chemists that posses the required skills... As the saying goes... You can't put 9 women to task to create a baby in one month.
So... The way to return some of the good results to the share holders is via a dividend. I am confident that even with the dividend payment that SLP will continue to grow as it has in the past.
Go to the SLP web site, click on the investors tab and select "Conference Calls".
Ted Grasela. the president of acquired company Cognigen, provides an excellent presentation. It's good to see that he has come up to speed in such a short time. He seems to understand the nuts and bolts of the SLP business very well and will certainly make a positive contribution to the continued growth of the combined business. This business combination looks like a good move for SLP and provides an excellent opportunity for continued growth. SLP will be a larger company next year and patient investors should be well rewarded.
There is a PowerPoint presentation filed at the SEC web site that lists some of the new products they are working on. sec.gov/Archives/edgar/data/1023459/000101968715000133/0001019687-15-000133-index.htm
I've been invested in SLP since the early 2000's. Split adjusted the shares were around 25 cents. SLP is very consistent in growing sales and earnings, so as long as that continues there shouldn't be a "leveling off" Yes, there will be ups and downs but keep your eye on the big picture.
Up 4% today on a good volume increase. That's a good way to get ready for another year of positive results. SLP continues to all the right stuff...The team at Simulations-Plus continues to find ways to make the company more valuable. I expect we will see a larger company next year which should result in a higher valuation.
It looks like that hasn't been updated yet... I'm expecting a little higher, closer to $4 million but, we don't know anything about seasonality yet for Cognigen,
It's a good time to be invested in SLP! The recent Cogingen merger will advance gross sales by almost 45% so we should see sales levels in excess of $18 Million per year. And there is a lot of stuff going on that is getting us into new markets... The new MembranePlus software, Dow Chemical Licenses Simulations Plus Software to Assist with Toxicology and Environmental Research, the AEROModeler and much more.
" We believe the fundamental industry shift continues".
The drug discovery business has hit a brick wall and can no longer use the old brute force method... They are in desperate need of help with new technologies to keep them going, and SLP is providing that need. Those that don't embrace the new way by using computer software to streamline their business will be left behind. As SLP customers sign up for new offerings and the enhancements to the existing tools, new customers will have to acquire the software as well in order to remain competitive. Also, It's not difficult to understand that if the FDA is using an SLP product to evaluate submissions that the company looking for FDA approval should be using SLP software ahead of any submission.
I've been an investor since the dotcom bust around 2000-2001 and I've watched SLP grow from a market cap of less than $4 Million to over $100 Million ( that's called a 25 bagger ) and we are taking another big jump with the Cognigen acquisition. It's an exciting time to be here... I still have all my shares :-)
Remember this from the Q4 sales release on September 4...
John DiBella, vice president for marketing and sales of Simulations Plus, said: “This new record for fourth fiscal quarter revenues is likely to be eclipsed by a substantial amount going forward as a result of our just-completed acquisition of Cognigen Corporation. In addition to the sustained growth of Simulations Plus over more than 10 years, we will now be adding revenues from our Cognigen division. Needless to say, this is an exciting time for both Simulations Plus and Cognigen.”
Another stock dividend... .05 cents per share to be paid on Nov 14. At an annual rate this comes to almost 3.5% per year... With current cash and receivables at almost $9 Million this leaves plenty of cash for continued growth. Not bad for this low rate environment that we seem to be stuck in.
This has been in development for a long time and SLP customers have expressed an interest for this product. We should expect to see positive financial results as this rolls out.
This started with a small sell of 2250 shares that the market makers did not support. More sellers added to the down draft. I am not aware of any news.