Simulations Plus Inc (SLP) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Simulations Plus Second Quarter Fiscal 2023 Financial Results Conference Call.

您好，歡迎來到 Simulations Plus 第二季度 2023 財年財務業績電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded. It is now my pleasure to introduce Brian Siegel from Hayden IR. Thank you, Mr. Siegel, you may begin.

提醒一下，這次會議正在錄製中。現在我很高興介紹來自 Hayden IR 的 Brian Siegel。謝謝您，Siegel 先生，您可以開始了。

Good afternoon, everyone. Welcome to our second quarter fiscal 2023 financial results conference call. With me today is our CEO, Shawn O'Connor; and our CFO, Will Frederick. After their portion of the call, we will open the floor to questions. Before we begin, I want to remind everyone that except for historical information, the matters discussed in this presentation are forward-looking statements that involve risks and uncertainties.

大家下午好。歡迎來到我們的 2023 財年第二季度財務業績電話會議。今天和我在一起的是我們的首席執行官肖恩·奧康納 (Shawn O'Connor)；以及我們的首席財務官 Will Frederick。在他們的電話會議結束後，我們將開始提問。在我們開始之前，我想提醒大家，除歷史信息外，本演示文稿中討論的事項均為前瞻性陳述，存在風險和不確定性。

Words like believe, expect, anticipate, refer to our best estimates as of this call, and there can be no assurances that these will actually take place. So our actual future results could differ significantly from these statements. Further information on the company's risk factors is contained in the company's quarterly and annual reports and filed with the U.S. SEC. With that said, I would like to turn the call over to Shawn O'Connor. Shawn?

相信、期望、預期等詞語指的是我們在本次電話會議時的最佳估計，並且無法保證這些會實際發生。因此，我們未來的實際結果可能與這些陳述有很大差異。有關公司風險因素的更多信息包含在公司的季度和年度報告中，並已提交給美國證券交易委員會。話雖如此，我想把電話轉給肖恩奧康納。肖恩？

Thank you, Brian, and thank you all for joining us on our second quarter conference call. This was a solid quarter for Simulations Plus. Second quarter revenue grew 6% year-over-year. Our software business grew 7%, generally in line with expectations reflecting the changes we proactively made in our renewal program. And the service business grew by 4% year-over-year highlighted by the PK/PD and PBPK offerings.

謝謝 Brian，也感謝大家加入我們的第二季度電話會議。對於 Simulations Plus，這是一個穩定的季度。第二季度收入同比增長 6%。我們的軟件業務增長了 7%，總體上符合反映我們在更新計劃中主動做出的改變的預期。 PK/PD 和 PBPK 產品凸顯了服務業務同比增長 4%。

From a profitability perspective, we maintained solid margins and saw improvement over the first quarter as revenues grew, leading to $4.2 million of net income or $0.20 per diluted share. This result exceeded our guidance for the quarter. We continue to successfully navigate a challenging economy and its impact on our sales cycle. Drug developers are delaying purchases and elongating the sales cycle. For the most part, we have not lost opportunities, but this did impact our growth in the second quarter. I'd reiterate that we have taken this into account when preparing our 2023 full year outlook.

從盈利能力的角度來看，我們保持了穩健的利潤率，並且隨著收入的增長比第一季度有所改善，導致淨收入為 420 萬美元或攤薄後每股收益為 0.20 美元。這一結果超出了我們對該季度的指導。我們繼續成功應對充滿挑戰的經濟及其對我們銷售週期的影響。藥品開發商正在推遲採購併延長銷售週期。在大多數情況下，我們並沒有失去機會，但這確實影響了我們第二季度的增長。我要重申，我們在準備 2023 年全年展望時已考慮到這一點。

Second quarter was highlighted by significant collaborative work with both partners and in support of our clients. To begin with, we have, in the last month, announced 2 collaborations involving our artificial intelligence, machine learning technologies. Both the Institute of Medical Biology of the Polish Academy of Sciences and Sino-American Cancer Foundation partnerships will leverage our expertise in AI machine learning technologies to help with the discovery of novel molecules against 2 different emerging cancer targets.

第二季度的重點是與合作夥伴的重要合作以及對我們客戶的支持。首先，我們在上個月宣布了兩項涉及人工智能和機器學習技術的合作。波蘭科學院醫學生物學研究所和中美癌症基金會的合作夥伴關係都將利用我們在 AI 機器學習技術方面的專業知識，幫助發現針對 2 個不同新興癌症靶點的新分子。

The computational and medicinal chemists in our early drug discovery services team will work with them to utilize the cutting-edge AIDD technology in our ADMET Predictor software platform to accelerate the design and optimization of novel lead molecules. Our primary objective in these collaborations is to demonstrate the value of our AI machine learning technology and the capabilities of our drug discovery team in support of our software licensing and consulting service practice and in our market growth in these 2 areas.

我們早期藥物發現服務團隊的計算和藥物化學家將與他們合作，利用我們 ADMET Predictor 軟件平台中的尖端 AIDD 技術來加速新型先導分子的設計和優化。我們在這些合作中的主要目標是展示我們的人工智能機器學習技術的價值和我們藥物發現團隊的能力，以支持我們的軟件許可和諮詢服務實踐以及我們在這兩個領域的市場增長。

In addition, both collaborations do provide for incremental benefits of joint compound ownership or milestone payments, if successful. We're very excited about these opportunities -- the opportunities these 2 collaborations represent. We entered into a new pKa collaboration with a large agrochemical company, extending machine learning models into a new and different space and broadening our addressable market. Our team will use the partner company's proprietary measurements drawn from its vast internal databases to build and refine a predictive model that can accurately predict the PK values of various chemical compounds.

此外，如果成功，這兩項合作確實提供了聯合化合物所有權或里程碑付款的增量收益。我們對這些機會感到非常興奮——這兩個合作代表的機會。我們與一家大型農化公司開展了一項新的 pKa 合作，將機器學習模型擴展到一個全新的不同領域，並拓寬了我們的潛在市場。我們的團隊將使用合作夥伴公司從其龐大的內部數據庫中提取的專有測量值來構建和改進預測模型，以準確預測各種化合物的 PK 值。

Additionally, we will create and evaluate new algorithms and techniques to further enhance the predictive capabilities of the model. We also submitted 4 FDA grant applications, one for ocular PBPK, another for lipid-based formulations, and finally, PBPK precision dosing and virtual BE workflows. Our relationship and collaborations with the FDA to extend modeling functionalities have always been a strength for Simulations Plus. A global biopharmaceutical company strategically partnered with us to apply GastroPlus PBPK modeling for their biosimilars project.

此外，我們將創建和評估新的算法和技術，以進一步增強模型的預測能力。我們還提交了 4 份 FDA 資助申請，一份用於眼部 PBPK，另一份用於基於脂質的製劑，最後是 PBPK 精確劑量和虛擬 BE 工作流程。我們與 FDA 在擴展建模功能方面的關係和合作一直是 Simulations Plus 的優勢。一家全球生物製藥公司與我們戰略合作，將 GastroPlus PBPK 建模應用於他們的生物仿製藥項目。

Preclinical and clinical PBPK models are developed for the reference antibody injectable formulation and applied to predict bioequivalence for the prototype test formulations in development. The simulation results help the company decide on the final formulation to advance into the pivotal study and minimize the risk of a failed outcome. Applications of GastroPlus in the biologics and biosimilars market is an emerging opportunity for us. A clinical-stage precision medicine company outsourced GastroPlus PBPK modeling support to our experts for the lead and backup compounds with the simulation results informing their clinical candidate selection in the upcoming first-in-human study designs for their IND filing.

為參考抗體注射製劑開發了臨床前和臨床 PBPK 模型，並應用於預測開發中原型測試製劑的生物等效性。模擬結果幫助公司決定最終配方以推進關鍵研究，並將失敗結果的風險降至最低。 GastroPlus 在生物製劑和生物仿製藥市場的應用對我們來說是一個新興的機會。一家臨床階段的精準醫學公司將 GastroPlus PBPK 建模支持外包給我們的專家，以獲得先導化合物和備用化合物，模擬結果為他們在即將進行的首次人體研究設計中選擇臨床候選藥物提供信息，以供其 IND 申報。

The confidence our partner obtained from these activities helped convince them to onboard the software for use internally across their entire pipeline. This quarter, Simulation Plus' service team provided pharmacometric modeling and simulation support for multiple high-profile regulatory submissions, including 1 compound offering novel treatment for a rare genetic disease and 2 other compounds considered to be among the most anticipated drug launches in 2023.

我們的合作夥伴從這些活動中獲得的信心幫助說服他們在整個管道中使用該軟件。本季度，Simulation Plus 的服務團隊為多項備受矚目的監管提交提供了藥理學建模和仿真支持，其中包括一種為罕見遺傳病提供新療法的化合物和另外兩種被認為是 2023 年最受期待藥物上市的化合物。

Finally, we expanded our growing opportunity as a consultant for investors, successfully selling our services for another even larger QSP project to provide insight to an investment group looking to invest in public private companies. This follows the successful NAFLDsym project last quarter. Our ability to utilize public data and information to help investors make an informed decision is creating a new opportunity for us. These highlights demonstrate the numerous ways we assist our clients, utilizing model-informed drug development approaches.

最後，我們擴大了作為投資者顧問的不斷增長的機會，成功地為另一個更大的 QSP 項目銷售我們的服務，為尋求投資上市私營公司的投資集團提供洞察力。這是繼上個季度成功的 NAFLDsym 項目之後。我們利用公共數據和信息幫助投資者做出明智決策的能力正在為我們創造新的機會。這些亮點展示了我們利用基於模型的藥物開發方法協助客戶的多種方式。

Moving to our software business. Revenues were up 7% in the quarter. As we have previously stated, we are taking deliberate actions with our software customers to align software renewal timing, which we expect to impact our first quarter revenue seasonality, with our second through fourth quarter revenues being more evenly dispersed in absolute dollars. This trend line and new seasonality pattern was evident in the second fiscal quarter.

轉向我們的軟件業務。本季度收入增長了 7%。正如我們之前所說，我們正在與我們的軟件客戶採取慎重的行動，以調整軟件更新時間，我們預計這將影響我們第一季度的收入季節性，而我們的第二至第四季度收入將更均勻地分佈在絕對美元上。這一趨勢線和新的季節性模式在第二財季很明顯。

We believe the renewal harmonization initiative is having the expected results of efficiency for ourselves and our customers and should be completed during the fiscal year. While quarterly software revenue growth rates are being impacted by this change in seasonality, we anticipate its impact on year-over-year software revenue growth to be minimal, and it's contemplated in our guidance. Our sales cycle is being impacted by economic concerns as sales to several potential new clients were pushed out, but not lost.

我們相信，更新協調計劃正在為我們自己和我們的客戶帶來預期的效率結果，應該在本財年完成。雖然季度軟件收入增長率受到這種季節性變化的影響，但我們預計它對軟件收入同比增長的影響微乎其微，我們的指南中也考慮到了這一點。我們的銷售週期受到經濟問題的影響，因為對幾個潛在新客戶的銷售被推遲了，但並沒有失去。

We also had several smaller biotechs, not renewed due to cost containment measures implemented more dramatically in this market segment and the economic headwinds that are impacting funding for that part of the market. At the same time, we are achieving success in rolling out price increases, reflective of our increased costs, which somewhat offset slower new sales cycles and contribute to higher gross margins and higher average revenue per account.

我們還有幾家規模較小的生物技術公司，由於在該細分市場實施的成本控制措施更為顯著，以及經濟逆風正在影響該部分市場的資金，因此沒有更新。與此同時，我們在提價方面取得了成功，這反映了我們增加的成本，這在一定程度上抵消了較慢的新銷售週期，並有助於提高毛利率和每個客戶的平均收入。

GastroPlus was hit hardest in the first quarter by renewal alignment. But as expected, it rebounded nicely with 18% growth in the second quarter. We added 6 new customers, including business sourced in China. Of note, we brought a brand-new distributor on in Brazil, which booked its first sale during the quarter. We also made 6 upsells to existing customers and saw 25 peer-reviewed published journal articles. These are all positive data points.

GastroPlus 在第一季度受到更新調整的打擊最大。但正如預期的那樣，它在第二季度以 18% 的增長率反彈得很好。我們增加了 6 個新客戶，包括來自中國的業務。值得注意的是，我們在巴西引進了一家全新的經銷商，該經銷商在本季度完成了首次銷售。我們還向現有客戶進行了 6 次追加銷售，並查看了 25 篇經過同行評審的已發表期刊文章。這些都是積極的數據點。

MonolixSuite revenue declined 8% in the quarter due mostly to the software harmonization process and foreign exchange impact. However, we added 5 new customers and made 6 upsells to existing customers during the quarter and feel good about returning to growth over the next few quarters. ADMET Predictor, which received the largest impact from the loss of the small biotech customers, saw a revenue decline of 2% in the second quarter. Despite this, we added 1 new commercial customer and made 8 upsells to existing customers in the quarter.

MonolixSuite 收入在本季度下降了 8%，這主要是由於軟件協調過程和外匯影響。然而，我們在本季度增加了 5 個新客戶並向現有客戶進行了 6 次追加銷售，並且對在接下來的幾個季度恢復增長感到滿意。 ADMET Predictor 受到小型生物技術客戶流失影響最大，第二季度收入下降 2%。儘管如此，本季度我們還是增加了 1 個新的商業客戶，並向現有客戶進行了 8 次追加銷售。

Our University+ program continued to grow and now represents 278 licenses in 54 countries. The program integrates our software and educational facilities and makes it part of advanced curriculum while seeding the market of next-generation modeling and simulation professionals to drive future growth. Momentum in our services business continued in the second quarter with 4% revenue growth and backlog growth to $15.4 million.

我們的 University+ 計劃繼續發展，目前在 54 個國家/地區擁有 278 個許可證。該計劃整合了我們的軟件和教育設施，使其成為高級課程的一部分，同時為下一代建模和仿真專業人士培育市場以推動未來發展。我們的服務業務在第二季度繼續保持增長勢頭，收入增長 4%，積壓訂單增長至 1540 萬美元。

Operationally, we hired 2 consultants adding to the 5 we hired in the first quarter, and we believe these professionals will help convert backlog to revenue in the coming quarters. We performed 188 projects during the quarter. PK/PD revenue increased 19% this quarter. We continue to experience a shift to higher-margin time and material contracts from fixed price projects, which contributed to expanding our services gross margin. QSP/QST revenue decreased 32% for the quarter due to the more volatile nature of these high-dollar value, longer life cycle projects.

在運營方面，我們在第一季度聘請了 5 名顧問的基礎上又聘請了 2 名顧問，我們相信這些專業人員將有助於在未來幾個季度將積壓訂單轉化為收入。我們在本季度執行了 188 個項目。本季度 PK/PD 收入增長了 19%。我們繼續經歷從固定價格項目向利潤率更高的時間和材料合同的轉變，這有助於擴大我們的服務毛利率。由於這些高美元價值、生命週期較長的項目更具波動性，本季度 QSP/QST 收入下降了 32%。

As a reminder, in the second quarter last year, we had significant CRO pass-through revenue, creating a challenging comparison for this business. PBPK revenue increased 29% for the quarter, reflecting the deeper implementation of PBPK modeling, including an overall expansion of use cases and higher perceived value and impact. As we discussed last quarter, we evolved our capital allocation strategy, including the implementation of an accelerated share repurchase program, which began in January and an ongoing cash dividend.

提醒一下，在去年第二季度，我們有可觀的 CRO 轉手收入，為這項業務創造了一個具有挑戰性的比較。本季度 PBPK 收入增長了 29%，反映了 PBPK 建模的更深入實施，包括用例的全面擴展以及更高的感知價值和影響。正如我們在上個季度討論的那樣，我們改進了我們的資本配置策略，包括實施從 1 月份開始的加速股票回購計劃和持續的現金股息。

As a reminder, we have 3 areas of focus: first, internal investment, which drives organic growth; second is corporate development, which drives inorganic growth; and finally, returns, capital to shareholders. With regard to return of capital to shareholders, the Board approved a $50 million buyback program. Given our current cash position and free cash flow, we believe we can still execute corporate development initiatives while offsetting a portion of the dilution from the 2020 capital raise.

提醒一下，我們有3個重點領域：第一，內部投資，推動有機增長；二是企業發展，推動無機增長；最後，回報，股東資本。關於向股東返還資本，董事會批准了一項 5000 萬美元的回購計劃。鑑於我們目前的現金狀況和自由現金流，我們相信我們仍然可以執行企業發展計劃，同時抵消 2020 年融資帶來的部分稀釋。

We initiated the share repurchase program with a $20 million ASR, which is currently being affected with an anticipated conclusion in the third quarter. Looking to the remainder of fiscal 2023, we maintained the guidance we provided at the beginning of our fiscal year. As a reminder, our full year revenue target is 10% to 15% organic growth, which translates to $59.3 million to $62 million. As we said last quarter, we will continue investing in our people while selectively adding headcount in certain areas to support our long-term growth targets.

我們以 2000 萬美元的 ASR 啟動了股票回購計劃，該計劃目前正在受到影響，預計將在第三季度結束。展望 2023 財年的剩餘時間，我們維持了我們在財年開始時提供的指導。提醒一下，我們的全年收入目標是有機增長 10% 到 15%，即 5930 萬美元到 6200 萬美元。正如我們上個季度所說，我們將繼續投資於我們的員工，同時有選擇地在某些領域增加員工人數以支持我們的長期增長目標。

This means fiscal 2023 will be a transition year for our cost structure leading to lower margins and restraining EPS and EBITDA growth. We believe these actions are prudent and will benefit our long-term revenue growth while returning to a model with strong operating leverage. We expect to achieve diluted earnings per share of $0.63 to $0.67, which translates to 5% to 10% growth. Let me turn to Will to discuss the financial results.

這意味著 2023 財年將是我們成本結構的過渡年，這將導致利潤率下降並抑制 EPS 和 EBITDA 的增長。我們認為這些行動是審慎的，將有利於我們的長期收入增長，同時回歸具有強大運營槓桿的模式。我們預計每股攤薄收益為 0.63 美元至 0.67 美元，相當於 5% 至 10% 的增長。讓我轉向威爾討論財務結果。

Thank you, Shawn. Total revenue increased 6% for the quarter comprised of 7% software growth and 4% services growth. Software represented 67% of revenue during the quarter. Total revenue increased 2% year-to-date comprised of a 3% decrease in software revenue and 11% services growth. Software represented 60% of revenue during the year. Gross margin for the quarter improved year-over-year to 83%, reflecting the higher software mix and improved services margins.

謝謝你，肖恩。本季度總收入增長 6%，其中軟件增長 7%，服務增長 4%。軟件佔本季度收入的 67%。年初至今總收入增長 2%，其中軟件收入下降 3%，服務收入增長 11%。軟件佔當年收入的 60%。本季度的毛利率同比提高至 83%，反映出更高的軟件組合和更高的服務利潤率。

Software gross margin remained flat at 92% and services margin increased to 66% compared to last year due to increased pricing and improved utilization. Gross margin year-to-date improved year-over-year to 81%, reflecting improved services margins. Software gross margin decreased slightly to 90%, and services margin increased to 68%. For the quarter, GastroPlus represented 55% of software revenue. MonolixSuite was 20%, ADMET Predictor was 18% and other software was 7%.

由於價格上漲和利用率提高，軟件毛利率保持在 92% 不變，服務利潤率比去年增加到 66%。年初至今的毛利率同比提高至 81%，反映了服務利潤率的提高。軟件毛利率小幅下降至 90%，服務毛利率上升至 68%。本季度，GastroPlus 佔軟件收入的 55%。 MonolixSuite 為 20%，ADMET Predictor 為 18%，其他軟件為 7%。

Year-to-date, GastroPlus represented 53% of software revenue, MonolixSuite was 22%, ADMET Predictor was 18% and other software was 7%. For the quarter, our customer renewal rate was 94% based on fees and 80% based on accounts. These lower rates reflect the renewal timing changes Shawn mentioned as well as the impact from smaller biotech customer nonrenewals. Generally, the smaller customer nonrenewals were offset with our price increases as reflected in the higher fee-based renewal rates.

年初至今，GastroPlus 佔軟件收入的 53%，MonolixSuite 佔 22%，ADMET Predictor 佔 18%，其他軟件佔 7%。本季度，我們的客戶續訂率為 94%（基於費用）和 80%（基於賬戶）。這些較低的利率反映了 Shawn 提到的續約時間變化以及較小的生物技術客戶不續約的影響。一般來說，較小的客戶不續訂被我們的價格上漲所抵消，這反映在較高的基於費用的續訂率上。

The increase in average revenue per customer is reflective of the higher prices, combined with the loss of smaller biotech companies as well as the seasonality of our software business. We expect quarterly comparisons to prior periods to fluctuate throughout the fiscal year with our new seasonal expectations. Year-to-date, our customer renewal rate was 93% based on fees and 81% based on accounts. Average revenue per customer increased to $103,000.

每個客戶平均收入的增加反映了價格上漲、規模較小的生物技術公司的虧損以及我們軟件業務的季節性。我們預計，隨著我們新的季節性預期，整個財政年度與前期的季度比較將會波動。年初至今，我們的客戶續訂率為 93%（基於費用）和 81%（基於賬戶）。每個客戶的平均收入增加到 103,000 美元。

Shifting to our services business. The services revenue breakdown for the quarter was 50% from PK/PD services, 20% from QSP/QST services, 23% from PBPK services and 7% from other services. The services revenue breakdown year-to-date was 49% from PK/PD services, 19% from QSP/QST services, 24% from PBPK services and 8% from other services. Other services consist primarily of regulatory services we provide our customers to help them meet global regulatory compliance and quality requirements.

轉向我們的服務業務。本季度的服務收入細分為 50% 來自 PK/PD 服務，20% 來自 QSP/QST 服務，23% 來自 PBPK 服務，7% 來自其他服務。年初至今的服務收入細分為 49% 來自 PK/PD 服務，19% 來自 QSP/QST 服務，24% 來自 PBPK 服務，8% 來自其他服務。其他服務主要包括我們為客戶提供的監管服務，以幫助他們滿足全球監管合規性和質量要求。

We also provide comprehensive learning services focused on modeling and simulation training with a variety of options to help our customers succeed. Total services projects worked on during the quarter decreased 6% compared to last year, and backlog decreased by approximately $2 million from last year to approximately $15 million. The decreases are primarily due to the QSP/QST services business.

我們還提供專注於建模和仿真培訓的綜合學習服務，提供多種選擇，幫助我們的客戶取得成功。本季度開展的服務項目總數與去年相比下降了 6%，積壓訂單比去年減少了約 200 萬美元，降至約 1500 萬美元。減少主要是由於 QSP/QST 服務業務。

Turning to our consolidated income statement for the quarter. Total R&D costs were $2.1 million or 14% of revenue compared to $1.6 million or 11% of revenue last year. R&D expenses were $1.3 million or 8% of revenue compared to $0.9 million or 6% of revenue last year. Capitalized R&D was $0.8 million or 5% of revenue compared to $0.7 million, also 5% of revenue last year. SG&A expense was $7.8 million or 49% of revenue compared to $5.6 million or 38% of revenue last year.

轉向我們本季度的合併損益表。研發總成本為 210 萬美元，佔收入的 14%，而去年為 160 萬美元，佔收入的 11%。研發費用為 130 萬美元，佔收入的 8%，而去年為 90 萬美元，佔收入的 6%。資本化研發為 80 萬美元，佔收入的 5%，而去年為 70 萬美元，也佔收入的 5%。 SG&A 費用為 780 萬美元，佔收入的 49%，而去年為 560 萬美元，佔收入的 38%。

Scientific headcount and compensation increases were the most significant driver of this increase. Income from operations decreased 26% to $4 million, while operating margin was 26% compared to 37% last year. Interest and other income was $1 million this quarter versus $0.1 million last year. This reflects stronger returns from higher interest rates on our investment portfolio balance. Income tax expense was $0.9 million compared to $1.1 million last year, reflecting an effective tax rate of 18% this year compared to 20% last year.

科學人員數量和薪酬增長是這一增長的最重要驅動力。運營收入下降 26% 至 400 萬美元，而營業利潤率為 26%，而去年為 37%。本季度的利息和其他收入為 100 萬美元，而去年為 10 萬美元。這反映了我們的投資組合餘額的更高利率帶來的更高回報。所得稅費用為 90 萬美元，而去年為 110 萬美元，反映出今年的有效稅率為 18%，而去年為 20%。

Net income decreased 5% to $4.2 million and diluted earnings per share decreased to $0.20. The revenue impact for the quarter from foreign currency exchange was $0.2 million, and expenses related to M&A during the quarter were $0.1 million for a total of $0.3 million or about $0.01 in diluted earnings per share. Adjusted EBITDA was $6.2 million, and adjusted EBITDA margin was 40% compared to adjusted EBITDA of $7.2 million or 48% margin last year. As a reminder, we calculate adjusted EBITDA by adding back stock-based compensation expenses and expenses related to M&A or other noncash nonoperating expenses.

淨收入下降 5% 至 420 萬美元，每股攤薄收益下降至 0.20 美元。外幣兌換對本季度的收入影響為 20 萬美元，本季度與併購相關的費用為 10 萬美元，總計 30 萬美元，攤薄後每股收益約為 0.01 美元。調整後的 EBITDA 為 620 萬美元，調整後的 EBITDA 利潤率為 40%，而去年調整後的 EBITDA 為 720 萬美元或 48%。提醒一下，我們通過加回基於股票的補償費用和與併購相關的費用或其他非現金非營業費用來計算調整後的 EBITDA。

We provide a reconciliation of this non-GAAP metric to net income, the relevant GAAP metric, in our earnings release and on our website. Turning to our consolidated income statement year-to-date, total R&D costs were $4.2 million or 15% of revenue compared to $3.3 million or 12% of revenue last year. R&D expenses were $2.5 million or 9% of revenue compared to $1.8 million or 7% of revenue last year. Capitalized R&D was $1.7 million or 6% of revenue compared to $1.5 million, also 6% of revenue last year.

我們在我們的收益發布和我們的網站上提供了這一非 GAAP 指標與淨收入、相關 GAAP 指標的對賬。轉向我們年初至今的合併損益表，總研發成本為 420 萬美元或占收入的 15%，而去年為 330 萬美元或占收入的 12%。研發費用為 250 萬美元，佔收入的 9%，而去年為 180 萬美元，佔收入的 7%。資本化研發為 170 萬美元，佔收入的 6%，而去年為 150 萬美元，佔收入的 6%。

SG&A expense was $15 million or 54% of revenue compared to $10.6 million or 39% of revenue last year. Income from operations decreased 47% to $4.9 million, while operating margin was 18% compared to 34% last year. Interest and other income was $1.8 million versus $0.1 million last year. Income tax expense was $1.3 million compared to $2 million last year, reflecting an effective tax rate of 19% this year compared to 21% last year.

SG&A 費用為 1500 萬美元，佔收入的 54%，而去年為 1060 萬美元，佔收入的 39%。運營收入下降 47% 至 490 萬美元，而營業利潤率為 18%，而去年為 34%。利息和其他收入為 180 萬美元，而去年為 10 萬美元。所得稅費用為 130 萬美元，而去年為 200 萬美元，反映出今年的有效稅率為 19%，而去年為 21%。

We expect our effective tax rate for the fiscal year to be in the range of 19% to 20%. Net income decreased 27% to $5.4 million and diluted earnings per share decreased to $0.26. The revenue impact year-to-date from foreign currency exchange was $0.5 million, and expenses related to M&A during the year were $0.4 million for a total of $0.9 million or about $0.04 in diluted earnings per share. Adjusted EBITDA was $9.2 million and adjusted EBITDA margin was 33% compared to adjusted EBITDA of $12.4 million or 46% margin last year.

我們預計本財年的有效稅率將在 19% 至 20% 之間。淨收入下降 27% 至 540 萬美元，每股攤薄收益下降至 0.26 美元。年初至今外匯兌換對收入的影響為 50 萬美元，年內與併購相關的費用為 40 萬美元，總計 90 萬美元，攤薄後每股收益約為 0.04 美元。調整後的 EBITDA 為 920 萬美元，調整後的 EBITDA 利潤率為 33%，而去年調整後的 EBITDA 為 1240 萬美元或 46%。

We ended the quarter with cash and short-term investments of $115 million and no debt. During the quarter, we paid Morgan Stanley $20 million under our accelerated stock repurchase agreement and received an initial delivery of 408,685 shares of our common stock. These shares were retired and are treated as authorized unissued shares. The final number of shares to be repurchased will be based on the volume-weighted average price of our common stock during the term of the ASR agreement, plus a discount and subject to adjustments. The final settlement is expected to be completed during the third quarter, and we currently estimate the final share delivery to be approximately 85,000 to 95,000 shares.

本季度結束時，我們的現金和短期投資為 1.15 億美元，沒有債務。本季度，我們根據加速股票回購協議向摩根士丹利支付了 2000 萬美元，並收到了 408,685 股普通股的首次交付。這些股份已退役並被視為授權未發行股份。最終回購的股份數量將基於我們普通股在 ASR 協議期限內的成交量加權平均價格加上折扣，並可能有所調整。最終結算預計在第三季度完成，我們目前預計最終股份交割量約為85,000至95,000股。

We continue to be well capitalized, and combined with our free cash flow, we believe we have sufficient resources to support our capital allocation initiatives and continued pursuit of strategic acquisitions and investments. I'll now turn the call back to you, Shawn.

我們繼續擁有充足的資本，結合我們的自由現金流，我們相信我們有足夠的資源來支持我們的資本配置計劃和繼續進行戰略收購和投資。肖恩，我現在會把電話轉回給你。

Thank you, Will. The quarter generally unfolded as we expected, and the adjustments to our renewal strategy are progressing well, putting us on track to achieve our full year goals. Foreign exchange rates continue to create headwinds and the general economy is impacting our sales cycle, particularly for smaller biotech companies. But we are navigating these challenges, driving profitable growth, generating cash and returning capital to shareholders.

謝謝你，威爾。本季度總體上符合我們的預期，我們的更新戰略調整進展順利，使我們有望實現全年目標。匯率繼續造成不利因素，整體經濟正在影響我們的銷售週期，尤其是對於較小的生物技術公司而言。但我們正在應對這些挑戰，推動盈利增長，產生現金並將資本返還給股東。

I'm proud that we continue to deliver on our commitment to science, driving greater adoption of in silico tools to accelerate innovation and reduce costs. We are investing in internal R&D efforts to maintain and grow our leadership position, and our increased scale enables us to expand our industry collaborations. We continue expanding our strong global regulatory relationships and now have multiple FDA technology development collaborations.

我很自豪我們繼續履行對科學的承諾，推動更多地採用計算機工具以加速創新和降低成本。我們正在投資於內部研發工作，以保持和發展我們的領導地位，我們擴大的規模使我們能夠擴大我們的行業合作。我們繼續擴大我們強大的全球監管關係，現在有多項 FDA 技術開發合作。

In conclusion, we are confident in our ability to execute against our plan and achieve our guidance for fiscal 2023. Thank you for your time and attention. And I'll now turn the call over to the operator for the question-and-answer session.

總之，我們有信心執行我們的計劃並實現我們對 2023 財年的指導。感謝您的時間和關注。我現在將電話轉給接線員進行問答環節。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of François Brisebois with Oppenheimer.

我們的第一個問題來自 François Brisebois 與 Oppenheimer 的對話。

Just first one for me is just in terms of the revenue growth and the confidence and hitting the end of your guidance. Can you just maybe help us just clarify what metrics or maybe qualitatively what it is just based on the quarter here that keeps you confident in achieving the year-end revenue goal?

對我來說，第一個就是收入增長和信心，以及達到你的指導目標。您能否幫助我們澄清哪些指標或定性的是什麼基於這裡的季度讓您對實現年終收入目標充滿信心？

The renewal harmonization program really has jumbled the renewal dates through the course of the year and impacting our quarter delivery of software revenue. The activity through the first couple of quarters in that regard has gone as anticipated and still believe pretty strongly that the renewal rates will be complete, that harmonization process will be complete by the end of the year. And so on a year-over-year basis, we should see a normalized revenue growth in terms of the software business.

續訂協調計劃確實打亂了全年的續訂日期，並影響了我們季度交付的軟件收入。前幾個季度在這方面的活動按預期進行，並且仍然堅信續訂率將完成，協調過程將在年底前完成。因此，與去年同期相比，我們應該看到軟件業務的正常收入增長。

That inevitably meant that with a seasonality pattern last year, low first and fourth quarter. And this year was a low first quarter, you can lower first quarter and a more comparable second, third and fourth quarter delivery of revenue. But the growth rates in terms of the first half of the year is we're going to be depressed in the growth rates in the third quarter and especially the fourth quarter, where last year was a very low revenue quarter would be exaggerated in the fourth quarter, evening out as we get to the end of the year. So the qualitative indicators that were on that path are the harmonization program slot again pretty much as anticipated going into the year.

這不可避免地意味著，在去年的季節性模式下，第一季度和第四季度較低。今年第一季度很低，你可以降低第一季度和更可比的第二、第三和第四季度交付的收入。但就今年上半年的增長率而言，我們將在第三季度，尤其是第四季度的增長率中感到沮喪，去年是一個非常低的收入季度，第四季度會被誇大季度，晚上出去玩，因為我們到了年底。因此，這條道路上的定性指標再次成為協調計劃時段，與今年的預期非常接近。

Okay. Great. So that extension and sales cycle that we expected the new seasonality, it's not -- you wouldn't say this quarter, it kind of showed that, look, it was a little bit worse than expected. It's still fairly in line, and we're dealing with it?

好的。偉大的。所以我們預期新的季節性的擴展和銷售週期，它不是 - 你不會說這個季度，它有點表明，看，它比預期的要差一點。它仍然相當符合，我們正在處理它？

Yes. No, it's fairly in line in terms of the harmonization program. Certainly, receiving elongation of some sales cycles here independent of the harmonization program as we see the macroeconomic environment slowdown purchasing departments in our clients' industries and especially in that segment in biotech. So we're managing our way through that. And on the other side, our price increase that we put in place at the beginning of the year -- before the beginning of the year is yielding a pretty good contribution to offset those economic challenges that we're running into. So a number of variables coming into play, all of which come down and net out to a reconfirmation of our guidance as provided at the beginning of the year.

是的。不，就協調計劃而言，它相當符合。當然，由於我們看到宏觀經濟環境放緩了我們客戶行業的採購部門，尤其是生物技術領域的採購部門，因此這裡的一些銷售週期的延長與協調計劃無關。所以我們正在設法解決這個問題。另一方面，我們在年初 - 年初之前實施的價格上漲產生了相當好的貢獻，以抵消我們遇到的那些經濟挑戰。因此，許多變量開始發揮作用，所有這些變量都下降並重新確認了我們在年初提供的指導。

Okay. Great. And then on the -- given the economic backdrop and what's been going on, that part of the prepared remarks, just discussing the new hires that you're making. These are very specialized hires. Can you maybe comment, is it only new hires? Or has there been a loss of personnel as well on the other side? Or if there is a loss, is it a kind of normal weight of loss? And -- just trying to get a feel for whether or not there's more people net-net or pretty much the same kind of sales force, I guess, your consulting force.

好的。偉大的。然後 - 考慮到經濟背景和正在發生的事情，準備好的那部分評論，只是討論你正在招聘的新員工。這些都是非常專業的僱員。你能評論一下嗎，這只是新員工嗎？還是另一邊也有人員流失？或者如果有減重，是不是一種正常的減重？並且 - 只是想了解是否有更多的人上網或幾乎相同類型的銷售人員，我想，你的諮詢人員。

Yes, primarily focused on the scientific consulting group. It's a net plus for the organization year-to-date here for 2 quarters. Good recruiting, good hiring, success on that side and on retention, very positive. I can't say that we haven't lost anyone. But certainly compared to last year, the retention side has shored up. We invested quite a bit at the end of last year. In terms of our review of all aspects of working for Simulations Plus, big component of which is compensation, but other factors.

是的，主要集中在科學諮詢小組。這是該組織年初至今兩個季度的淨收益。良好的招聘，良好的招聘，這方面的成功和保留，非常積極。我不能說我們沒有失去任何人。但可以肯定的是，與去年相比，留存率有所提高。我們在去年年底投資了很多。就我們對為 Simulations Plus 工作的各個方面的審查而言，其中很大一部分是薪酬，但還有其他因素。

And implemented some programs that we thought would contribute to a tapering off in terms of any retention challenges that we had with the demand that was in the marketplace for skilled people that we have on board and support our recruiting efforts into fiscal year '23 and quite pleased with the results of that investment to date.

並實施了一些計劃，我們認為這些計劃將有助於減少我們在市場上對技術人才的需求所面臨的任何保留挑戰，並支持我們在 23 財年的招聘工作對迄今為止的投資結果感到滿意。

Our next question comes from the line of Matt Hewitt with Craig-Hallum.

我們的下一個問題來自 Matt Hewitt 和 Craig-Hallum 的對話。

Maybe first up regarding the synchronization process, it sounds like you're pretty much complete on the GastroPlus side. It sounds like you've got a little bit more work to do on the MonolixSuite side of the equation. Is that something you expect to wrap up here in the third quarter? Or is that maybe a 1- or a 2-quarter process to complete that?

也許首先是關於同步過程，聽起來您在 GastroPlus 方面已經很完整了。聽起來您在等式的 MonolixSuite 方面還有一些工作要做。這是你希望在第三季度結束的事情嗎？或者這可能是一個 1 或 2 個季度的過程來完成它？

Yes, Matt, it's by the end of the year process. I wouldn't characterize that the process is done even for GastroPlus. While we did see that growth rate bounce back up to 18% in the second quarter, there is still a combination of movement on the renewal side there with that project that still has to play out. So I think we're certainly halfway through it, if you will, halfway through the year, making progress but still some hard work to do by the team.

是的，馬特，這是在年底的過程中。即使對於 GastroPlus，我也不認為該過程已經完成。雖然我們確實看到第二季度增長率回升至 18%，但續訂方面仍然存在動向，該項目仍需完成。所以我認為我們肯定已經完成了一半，如果你願意的話，在今年的一半，取得了進展，但團隊仍有一些艱苦的工作要做。

Okay. And then I think, Will, you provided a little bit of color on the renewal rates that dipped a little bit here in the second quarter. Is that pretty much a function of the synchronization process? Or is there maybe something else? Does that speak to a little bit on the delays on signing new contracts that I think you spoke to, Shawn?

好的。然後我想，威爾，你提供了一些關於第二季度這里略有下降的續訂率的顏色。這幾乎是同步過程的一個功能嗎？或者還有別的東西嗎？肖恩，我認為你曾與之交談過，這是否說明了簽署新合同的延誤？

Yes, it's a combination of some of the smaller biotechs that aren't renewing just with the environment out there for them to get financing. And then the rest of it is tied to the synchronization process and the timing for those renewals.

是的，它是一些規模較小的生物技術公司的組合，這些公司並不僅僅是為了獲得融資而更新環境。然後其餘部分與同步過程和這些更新的時間相關。

Got it. And then regarding the new collaborations. Obviously, congratulations on both of those. And I'm just curious, how should we be thinking about the size of those potential milestones? Will there be -- is there the potential for royalties if those molecules are ultimately approved by regulatory agencies? Who will own the molecule? Any additional color on the -- maybe the structure of the contracts would be helpful.

知道了。然後是關於新的合作。顯然，祝賀這兩個。我很好奇，我們應該如何考慮這些潛在里程碑的規模？如果這些分子最終得到監管機構的批准，是否有可能收取特許權使用費？誰將擁有該分子？合同結構上的任何其他顏色可能會有幫助。

Sure. Very excited about the 2 partnerships that we put in place and want to emphasize that our focus here is in terms of demonstrating the value and capabilities of our AI machine learning technology, working with 2 organizations that will supply the data, in many cases, the knowledge of the target and the candidates are -- our services support team will provide the support along with our technology to apply our AI technology to lead generation process there, very hopeful that it produces success with a focus on it being a driver in terms of our software licensing business and our consulting business in this area.

當然。對我們建立的 2 個合作夥伴關係感到非常興奮，並想強調的是，我們在這裡的重點是展示我們的 AI 機器學習技術的價值和能力，與將提供數據的 2 個組織合作，在許多情況下，對目標和候選人的了解是——我們的服務支持團隊將提供支持和我們的技術，將我們的人工智能技術應用到那裡的潛在客戶生成過程中，非常希望它能取得成功，並專注於它成為以下方面的驅動力我們在該領域的軟件許可業務和諮詢業務。

Having those case studies and success stories is what will drive that. And as you know, our focus has been in terms of being a tool provider to our clients as opposed to a drug developer. Now you enter into these relationships. And one of the benefits of them is that it's very common for some shared success triggers to be involved. And in one case, it is a joint ownership of compounds that may come out of the program. And in the other case, it's a defined royalty stream associated with them.

擁有這些案例研究和成功案例將推動這一點。如您所知，我們的重點是成為客戶的工具提供商，而不是藥物開發商。現在你進入這些關係。它們的好處之一是涉及一些共同的成功觸發因素是很常見的。在一種情況下，它是可能從該計劃中產生的化合物的共同所有權。在另一種情況下，它是與它們相關聯的已定義版稅流。

So while that's not our primary focus, it is a nice icing-on-the-cake opportunity. Understand that these programs do take some time to come to fruition. So I don't see any impact from those 2 opportunities in the near-term future for us, but certainly a nice opportunity in the long run.

因此，雖然這不是我們的主要關注點，但這是一個錦上添花的好機會。了解這些計劃確實需要一些時間才能取得成果。因此，我認為這兩個機會在短期內不會對我們產生任何影響，但從長遠來看肯定是一個不錯的機會。

That's great. And obviously, we'll -- hopefully you'll keep us apprised as those progress. And then maybe one last one, and I'm not sure if you're going to have this handy, but I'll throw it out there anyway. You did mention you're basically moving into a couple of new markets. And I'm just curious, one being outside of therapeutics, it sounded like -- are there TAMs associated with those market opportunities? Or is it -- were these more very early-stage one-off situations if -- depending upon how things go, then maybe it becomes a new market for you?

那太棒了。顯然，我們會——希望您能隨時通知我們這些進展。然後也許是最後一個，我不確定你是否會把它放在手邊，但無論如何我都會把它扔掉。你確實提到你基本上是在進入幾個新市場。我只是很好奇，一個在治療學之外，聽起來像——是否有與這些市場機會相關的 TAM？或者是——如果這些更早期的一次性情況——取決於事情的進展，那麼它可能會成為你的新市場嗎？

Yes, Matt, the agrochemical partnership with collaboration that we've been working there certainly opens up more business opportunity for our support in that industry segment, which has a very small footprint. And today, 5% of our business is done outside of the pharma world in support of the cosmetics industry and other adjacencies. This would go into that bucket and certainly would add some TAM to our opportunity on a go-forward basis. The other one I think you might be referring to is the biologics collaboration. And that certainly is not a brand-new market for us. We do participate in that market already, but increasing our functionality footprint and experience in that area gives us more opportunity to take market share in that segment.

是的，馬特，我們一直在那裡開展的農化合作夥伴關係肯定會為我們在該行業領域的支持開闢更多商機，該領域的足跡非常小。今天，我們 5% 的業務是在製藥行業之外完成的，以支持化妝品行業和其他相關行業。這將進入那個桶，並且肯定會在前進的基礎上為我們的機會增加一些 TAM。我認為您可能指的另一個是生物製劑合作。這對我們來說當然不是一個全新的市場。我們確實已經參與了該市場，但增加我們在該領域的功能足跡和經驗使我們有更多機會在該領域佔據市場份額。

Our next question comes from the line of Mitra Ramgopal with Sidoti.

我們的下一個問題來自 Mitra Ramgopal 與 Sidoti 的對話。

First, just curious on the churn you're seeing in small biotech accounts, if that's continuing now into the third quarter? And is it stabilizing? Or is it even moving on to maybe medium-sized companies?

首先，只是想知道您在小型生物技術賬戶中看到的流失情況是否會持續到第三季度？它穩定了嗎？或者它甚至會轉向中型公司？

It continues into the third quarter as it's evolving in terms of growing up scale. I mean large pharma and larger medium-sized biotech companies have experienced slowdown as well. So it's not virgin territory in those other categories, but it's been more dramatic in the small biotech space where funding is a little bit more critical, midterm funding is critical, smaller pipeline of candidates, so on and so forth. So certainly, the challenges that they face continue into this quarter.

隨著規模的擴大，它一直持續到第三季度。我的意思是大型製藥公司和較大的中型生物技術公司也經歷了放緩。因此，這在其他類別中不是處女地，但在小型生物技術領域更為引人注目，那裡的資金更為關鍵，中期資金至關重要，候選人渠道較小，等等。因此，可以肯定的是，他們面臨的挑戰將持續到本季度。

I know at the market level, we're playing some more activity in terms of potential funding, opening up a funding in the biotech space. It takes a while for that to trickle back down into the marketplace, cash in the hands of the small biotech and opening up of purchasing plans. So while macro, there might be some positive signs at -- on the ground level, it's still about equipment.

我知道在市場層面，我們在潛在資金方面開展了更多活動，在生物技術領域開放資金。這需要一段時間才能重新回到市場，在小型生物技術公司手中兌現並開放採購計劃。因此，雖然宏觀上可能有一些積極的跡象——在地面上，它仍然與設備有關。

Okay. And also just coming back to the recent hires. If that's included in the guidance in terms of expected contribution? Or is that more a fiscal '24?

好的。並且剛剛回到最近的僱員。就預期貢獻而言，這是否包含在指南中？或者這更像是一個財政'24？

We've seen new hires come up and running and contributing billable time quite quickly in terms of our most recent experience. So we will be waiting for them to contribute until the next fiscal year. But no, we're not changing our guidance to raise it because of the success we've had on the recruiting side at this point.

根據我們最近的經驗，我們已經看到新員工上崗並開始工作，並很快貢獻了計費時間。因此，我們將等待他們在下一個財政年度做出貢獻。但不，我們不會改變我們的指導來提高它，因為我們在這一點上在招聘方面取得了成功。

Okay. And then finally, on inorganic opportunities. I know you've mentioned in the past you have a lot -- you've been evaluating but nothing close, so to speak. And just wondering your level of optimism given the current environment and your strong cash position, et cetera, if we should be expecting something on that front over the next 12 months?

好的。最後，關於無機機會。我知道你過去提到過你有很多 - 你一直在評估但沒有什麼接近，可以這麼說。只是想知道您對當前環境的樂觀程度和您強大的現金狀況等等，我們是否應該在未來 12 個月內期待這方面的事情？

Yes. Mitra, it's hard to ever put any time constraints around those things. But certainly, it is a very active area for us, a number of discussions and efforts and investment in that space. And I'm sure that we will find ourselves happily making an announcement at some point here down the road, but I can't really put brackets around the timing of that.

是的。 Mitra，很難對這些事情設置任何時間限制。但可以肯定的是，這對我們來說是一個非常活躍的領域，在該領域進行了許多討論、努力和投資。而且我敢肯定，我們會發現自己很高興在未來的某個時候宣布這一消息，但我真的無法確定具體時間。

(Operator Instructions)

（操作員說明）

Our next question comes from the line of Dane Leone with Raymond James.

我們的下一個問題來自 Dane Leone 和 Raymond James 的對話。

Two questions for me. One, could you just give us an estimate in terms of the expected EPS impact from the buyback this year? And then secondly, are there any particular therapeutic verticals that you saw in the quarter that had more strength in terms of projects or were particularly weak driving some of the drop in service revenue?

我有兩個問題。第一，你能否就今年回購對每股收益的預期影響給我們一個估計？其次，您在本季度看到的任何特定的垂直治療領域是否在項目方面具有更大的優勢，或者在導致服務收入下降的情況下特別疲軟？

I'll go backwards in terms of the service revenue and the therapeutic areas. No real change in the dynamic that we've seen as to spending on the oncology front, neuroscience front. Those areas are quite active across multiple therapeutic areas. The service revenue drop this quarter really focused in terms of our QSP/QST consulting business where that business with its sort of typical $1 million, sometimes $2 million projects that its performance can be relatively lumpy and not really therapeutic driven in terms of its cadence of projects.

我將在服務收入和治療領域方面倒退。我們所看到的在腫瘤學、神經科學方面的支出動態沒有真正的變化。這些領域在多個治療領域都非常活躍。本季度服務收入的下降真正集中在我們的 QSP/QST 諮詢業務方面，該業務通常為 100 萬美元，有時為 200 萬美元的項目，其業績可能相對不穩定，而且就其節奏而言並不是真正的治療驅動項目。

So it's not really a therapeutic area challenge there. It's just the timing of the large projects. And last year, we had a significant revenue quarter in the second quarter for that group, so they're comparable was a bit of a tailwind. Will, you want to help out on the EPS side in terms of the impact of the stock buyback?

所以這並不是真正的治療領域挑戰。這只是大型項目的時間安排。去年，我們在第二季度為該集團帶來了可觀的收入季度，因此它們的可比性有點順風。您想就股票回購的影響在 EPS 方面提供幫助嗎？

Sure. With the ASR that we've got underway netted against the cash that we used and the interest we could earn, it's about a -- I'll call it, about a $0.01 improvement to EPS, which is included in our guidance.

當然。隨著我們正在進行的 ASR 與我們使用的現金和我們可以賺取的利息相抵扣，這大約是——我稱之為，每股盈利約 0.01 美元的改善，這包含在我們的指導中。

There are no further questions in the queue. I'd like to hand the call back to Shawn O'Connor for closing remarks.

隊列中沒有其他問題。我想將電話轉回 Shawn O'Connor 以作結束語。

Very good. Well, I appreciate everyone's attention today and support of Simulations Plus. We look forward to speaking again in a few months with our third quarter results. Take care, everyone.

非常好。嗯，感謝大家今天的關注和對Simulations Plus的支持。我們期待在幾個月後再次談論我們的第三季度業績。大家保重。

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路，度過美好的一天。