Simulations Plus (SLP $3.15) reported preliminary Q2 (February) results that were consistent with our expectation. Total sales rose 14% to $3.35 million. Pharmaceutical software revenues improved 18% to $2.62 million, representing 78% of the total. The non core text-to-speech line posted a 1% increase to $728,000. A series of software product upgrades could reinforce growth over the second half of fiscal 2011 (August). Income figures were not published but margins likely remained at superior levels, fueled by the company's highly profitable subscription sales model. New customers accounted for 29% of the pharmaceutical modeling business. Marketing activity is being maintained at a vigorous level.