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Wednesday, April 10, 2013
Simulations Plus ( Nasdaq - SLP ) -- Steady Growth Re-Established
Simulations Plus (SLP $4.00) reported good Q2 (Feb.) results. Earnings rose 17% to $.07 a share. Sales improved 12% to $3.12 million. The renewal rate was 93%. Eighteen new customers were added. The company had hoped to land a big contract with the Gates Foundation in the period. That proposal was rejected. Other funding partners are being pursued for the company's malaria project. New software products will be launched over the next two quarters, expanding the potential market. Simulations Plus remains reluctant to make acquisitions, which would provide a more dynamic growth opportunity. Investors can realistically stay invested although appreciation is likely to be muted in relation to the company's inherent potential.