Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today announced that its board of directors has voted to distribute an ongoing quarterly cash dividend of $0.05 per share to its shareholders beginning with the current fiscal year. The first dividend payment will be distributed on Thursday, March 1, 2012, for shareholders of record as of Tuesday, February 21, 2012. Walt Woltosz, chairman and chief executive officer of Simulations Plus, said: “As we announced during the last conference call, the board of directors has been considering the use of our cash reserves. After careful consideration that included information provided through a study by an outside firm, the board has concluded that a dividend is appropriate at this time. To that end, the Company will begin paying an ongoing quarterly dividend of five cents ($0.05) per share. This dividend will be in lieu of a share repurchase.” The factors the board considered in making this decision included, but were not limited to:
- The Company’s cash position continues to grow at a pace management believes will be sustained for the foreseeable future. Cash at the end of our first quarter was $12.66 million, as compared to $8.9 million at 11/30/2010. Cash as of February 9, 2012, was approximately $13.17 million.
- In spite of consistent, concerted efforts, and contacts made with numerous potential acquisitions, the Company has not yet been able to identify anything appropriate for the Company’s investment. This effort continues and will not be affected by the dividend.
- The Company has spent approximately $4 million over the last 2-3 years repurchasing shares. At this time, the board does not believe further repurchases are as beneficial to shareholders as a cash dividend.