Happy New Year everyone. It is Thursday, January 14, 2016 and on behalf of Simulations Plus, I welcome you to our first quarter fiscal year 2016 financial results conference call and webinar. Presenting this afternoon will be Chairman and CEO, Walt Woltosz; followed Chief Financial Officer, John Kneisel, Vice President of Marketing and Sales, John DiBella and our President, Ted Grasela. An opportunity to ask questions will follow today's presentation. [Operator Instructions] This call is being recorded for playback at our website www.simulaitons-plus.com. Before we begin today’s presentation we will start with our Safe Harbor statements. With the exception of historical information, the matters discussed in this presentation are forward-looking statements that involve a number of risks and uncertainties. The actual results of the company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to, continuing demand for the company's products, competitive factors, the company's ability to finance future growth, the company's ability to produce and market new products in a timely fashion, the company's ability to continue to attract and retain skilled personnel and the company's ability to sustain or improve current levels of productivity. Further information on the company's risk factors is contained in the company's quarterly and annual reports as filed with the U.S. Securities and Exchange Commission. So with that, it’s now my pleasure to turn the presentation over to Walt Woltosz, Chairman and CEO of Simulations Plus.

Thank you, Renee and welcome everybody to our first quarter fiscal year ’16 conference call. The highlights of the first quarter are all looking really, really good. Our software renewal rates of 89% based on the number of accounts and 94% based on the fees that those accounts bring in. A number of smaller accounts, academic or such that are very low revenue accounts change frequently as graduate students graduate or something like that but the major fees are coming from our commercial accounts and you can see the 94% renewal rate there is very strong. We added 23 new software client sites during this past quarter and we have been very active in product development, I think very exciting is the announcement of the development of our newest software program PKPlus. We hope to release that in the near future. This is a new software product that’s used for non-compartmental and compartmental analysis for regulatory submissions and for non-regulatory analysis as well. We believe this program has the potential to become a significant contributor to revenues and earnings based on the need and use of this type of software in the industry and the type of competition that exists out there. We’ve also been working on the next major release of our GastroPlus software version 9.5. This will add intramuscular dosing. In the past, we’ve had transdermal dosing through the skin but we did not have the intramuscular, so injections into a muscle, and this is being supported in part by our research collaboration agreement with the FDA for a long acting injectable microsphere dosage. We’re also adding antibody drug conjugates. This is where an antibody is used as a carrier to deliver a small molecule to a target tissue or organ. We’re increasing the integration speed of the…

All right. Well, thank you. Good afternoon everyone. You can move on to – off my name, Walt. Thank you. The quarter was a good quarter for us, really, really happy with the results that we saw. I think they are fairly explanatory but we will go through it here. Our revenues were up $752,000 or 18.4% to $4.8 million this last fiscal year and that’s a significant increase over the prior year. The net revenues for the Lancaster, California division increased $459,000 which is about 15.6%. They were made up of software revenue increases of about $324,000 which John will talk about little bit later on, and analytical revenues which were up $121,000, almost 89% over the prior year. It was a good quarter for those revenues. The Buffalo division was up $293,000 and which was 25.8%, which is a very happy increase over the prior year after the first of the acquisition. This resulted in our gross margins being up another 2%, and so for the period were at 77.6%. This gross margin increase did result from the containing of costs while increasing revenues, always a good thing for the bottom line, and also as our costs tend to be fairly consistent, any increase in sales really helps our margin and our profitability. Looking at SG&A expenses, they were down $403,000 or 19% to $1.68 million in 2016 from the last year. There weren’t really any significant increases in any of the G&A expense categories in this quarter, though we did see a couple of decreases. And the most significant one that explains the majority of the change was the decrease in consulting fees that we had, last year in the first quarter we had booked $400,000 in one-time fees related to our financial advisor and business broker…

Thank you, John. Next slide, Walt. In case we have anybody new to the company that's on the call today, please allow me to just briefly describe our products and services and where they fit in the drug development process using this visual here. In a nutshell, what we do is we offer end-to-end solutions which span from early discovery going all the way through the clinical development and regulatory filings, Walt has talked about this already. The ChemInformatic software package that we offer, which consists of ADMET Predictor, MedChem Studio, and MedChem Designer, allow research scientists to design new compounds, virtually screen them across the spectrum of properties to really help them prioritize testing as they go forward. The simulation suite which consists of GastroPlus, DDDPlus, MembranePlus and the new PKPlus platforms help scientists model and predict complex in-vitro experiments and ultimately the in-vivo exposure in animals and humans. And the KIWI software tool is a cloud-based validated program for managing and communicating pharmacometric projects and results. All of these software tools are complemented by our team of experts both in California and New York who can provide consulting support a our project-by-project basis. Next slide. Diving a little bit deeper into the products themselves. Walt has mentioned already that the software development team is working really hard on new releases for all of the programs. The next version of GastroPlus which is the flagship product is expected in the spring and will include some new optional add-on features for intramuscular dosing and also enhancements to one of our newer modules for biologics. And we expect that both of these will help develop more sales in the future. The ChemInformatic development team is working really hard refreshing the ADMET Predictor and MedChem Studio interfaces, and based upon the initial…

Thanks very much John. This afternoon, I will be giving you an update on the consulting activities and the products that we offer through the Buffalo group. And as Walt mentioned at the beginning of the presentation, we've been realizing the strategic and synergy benefits of the Cognigen acquisition and have forged a very strong collaborations between the Buffalo and Lancaster-based scientists. And what’s important about these collaborations is as a result of it, we’ve been identifying new and innovative ways of using modeling and simulation to bring insight to our clients’ research and development programs. And that insight is the thing that keeps them coming back to us for additional work. We've also been focusing on social media and email blast as a strategy for marketing our services and have been focusing on the modeling and simulation activities but also our data assembly services as well as our new KIWI functionality and I’ll talk a little bit more about that in a moment. Lastly, we have increased our presence at national, international scientific meetings and that just gives us an opportunity to talk with current and existing clients and keep moving forward with these programs. As of the end of the first quarter of this year we are working with 19 companies on 32 different drugs and for those products we have a total of 56 projects. 15 of those projects actually started in this first quarter. We've expanded the scope of projects with three companies and that happens when as we perform analyses we discover new factors that need to be explored and clients approve the additional expenditures or revenue to delve with some of those questions and issues to address them for regulatory submissions, for example. Currently, our pipeline has a total of 26 outstanding proposals. Over…

I can remember that with myself [ph]. Thank you very much, John, Ted, and John. And now I will just summarize everything before we get any questions. Both divisions are performing very well. We are very pleased with the synergies that we expected and those are being realized. And we are now addressing the regulatory agency interest emphasized in a couple of meetings that were held with the FDA and [MHR] in England in 2014 to apply PD/PK in clinical pharmacology. Our software sales continue the strong growth trend. You saw the bar charts, that had a nice slop upward, a very nice chart over the past year now with the acquisition of Cognigen and the performance during the first quarter of this fiscal year. We do expect our organizations to further enhance our offerings and expand our markets, both our traditional products and the new PKPlus software, we expect it to become a major source of revenues and earnings. We will see how it goes, but we have very very high hopes for it and concerning the other industries outside of the pharmaceutical and healthcare -- in healthcare and in aerospace. Again to summarize. First quarter revenues up 18.4%, income up 109.2%, and diluted earnings per shares over 100%. So we strongly believe that Simulations Plus continues to lead the trend toward greater use of modeling and simulation in drug development. I am going to leave it on that slide for questions and I'll ask Renee to read the questions and then we’ll direct them to the appropriate person for an answer.

Thank you, Walt. Howard Halpern has the first question in the queue. The first question is, how does the landscape look for potential acquisition candidate?

Well, it’s a good question, Howard. As you know, we are always shopping, always looking. Right now though we don’t have anything that is on the immediate horizon but we’re always looking. With the share price being where it is, it gives us a little bit currency to maybe look at some bigger fish than we’ve looked at before. But for now we just keep looking, and if you know of something that looks attractive please let us know about it.

Thank you, Walt. Howard’s next question is: are you seeing increasing interest from industries other than pharmaceuticals for your products?

Well, the traditional products actually have been sold not only to pharmaceutical companies but also to food, to agri tech and we even had the military in the past. I am not sure if we have a military license right now but we did one time not too long ago. For the new industries, the aerospace and healthcare we’ve continued to have contacts with a number of groups in aerospace, works from two of those groups were not whether they would fund us but how they would fund us. The government agencies are not the fastest to get something like that done. So we are hoping that they are able to stir up something and get us marching down that path.

Thank you, Walt. Howard’s next question is probably for Ted. What drove the revenue increase in the Buffalo division and do you anticipate the growth trends to continue through fiscal year ’17?

Yes, thank you, Howard, for your question. A lot of the increase from last year had really two factors that were involved. One is we moved past the tractions that we had post acquisition as we retooled our systems and learned how to manage the company – as a public company. And so that my team has gotten very good at doing that. And so that's been an important factor. The other factor though is really recognizing the fact that together the two types of analyses that were performed by Lancaster and Buffalo really blended together very nicely. And I can't emphasize enough the synergies -- the scientific synergies that we see in being able to have a much broader look at the kinds of issues that pharmaceutical companies are faced with in demonstrating that the software and analytical skills that we possess is valuable to those. So some of it is just learning how to manage the business better, some of it has increased sales. We’re all hoping that we will continue, of course we never know but as I mentioned we have a healthy pipeline of projects that we’re working on for the future. So I will leave it at that.

Thank you, Ted. The next question and what appears to be the last question is from Paul Carter. He asks, in the last three months, [SIPROTEC] twice announced that its full year EBITDA would exceed market expectations. Has the competitive threat of SIPROTEC’s cloud PK software present to GastroPlus increased at all recently?

Yes, I think SIPROTEC has refocused their business from everything that I know over the last number of years to more a laboratory services, I don't even know if they offer cloud PK anymore. I don’t really think they do. There was a comparison study that Kaiser did back in 2008 comparing at that time the four PDPK software programs that were out and cloud PK, it came out dead last in both oral and IV dosing, accuracy of predicting first in human pharmacokinetics. They seemed to just drop off the picture at that time. If they are still selling cloud PK, it's not very obvious to me and I don’t think anyone else here.

That appears to be the last question. None of our attendees have their hands raised. There have been no further written questions submitted.

The shorted listed questions we’ve had in a long time. Anyway seeing no other questions, thank you everyone for attending today. I hope you are pleased with the performance of the company. We’re very excited about how things have been going and the opportunity going forward. I want to turn it over back to Renee now to wrap it up and then see you next quarter.

Thank you, Walt. We have just one final announcement. We will be presenting at Source Capital Group’s 2016 and Trusted Growth Financial [ph] Conference at the convent conference center in New York City on Thursday, February 11. There are opportunities for one on one meetings at this conference that we hope to see some of you there. And with that, we conclude today’s conference call. If you missed any part of today’s presentation, a replay will be available at our website www.simulations-plus.com. You will have that later this afternoon. Thank you all for joining us today.