Simulations Plus (SLP $3.10) reported excellent on target Q3 (May) results. Overall sales improved a modest 10% to $3.44 million. But the high potential pharmaceutical software line gained 14%. The non core text to speech unit was flat year to year. Pretax margins continued to widen, fueled by the company's recurring revenue model and the addition of new customers (47 to date). The tax rate also declined due to the availability of greater R&D tax credits. The combination of higher margins and lower taxes helped income rise 75% to $.07 a share in the period. For the entire year we are raising our earnings estimate by 11% to $.20 a share, due to those factors. In fiscal 2012 (August) a 25% hike in income to $.25 a share appears like a realistic target. Cash flow remains positive. Those reserves could fund an acquisition or stock repurchase, either of which could provide further impetus.