Shawn O’Connor - Chief Executive Officer John Kneisel - Chief Financial Officer Brett Howell - DILIsym, Division President [Call Starts Abruptly]…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 of the Company’s risk factors is contained in the Company’s quarterly and annual reports and filed with the Securities and Exchange Commission. With that said, I’d like to turn the call over to Shawn O’Connor. Shawn? Shawn O’Connor: Thank you, Cameron. As most of you know, I joined Simulations Plus as a CEO in late June of this year, succeeding its founding CEO, Walt Woltosz, who remains with the Company as its Chairman of the Board. I’d like to thank Walt for his assistance in the transition in these last few months and for handing off to me a Company as strong and sound as Simulations Plus today. Since our last conference call, I have spent significant time getting to know the Company, its products and services, its client base and employees. I spent time in each of our primary locations Lancaster, California, Buffalo, New York and at RTP in North Carolina, to meet and get to know our staff. There have been several key conferences in the past few months that have provided me with an opportunity to see our Company's presence in the marketplace and meet many of our clients. And in October,…

Thanks Shawn. We’ll go over the first quarter of last quarter's results first here. Consolidated net revenues for our fourth quarter of fiscal year 2018 were up 6.7% or approximately $400,000 to $6.7 million compared to $6.3 million for the prior year. By division; Lancaster revenues were up $13.4 million to $3.3 million; Buffalo revenues were up about 1% or $2.1 million; and RTP revenues were up 1% to $1.2 million. The consolidated software and software related revenues were up about $300,000 or about 11% and consulting service revenues were up about $100,000 or 3.4%. Those revenues for the fourth quarter on a year-over-year growth rate percentage were affected by two factors. First, this is the first quarter in which RTP, which was acquired in June of '17, contributed revenues in both the current and prior year results that Shawn had said earlier. Second, Buffalo and RTP divisions reported, what we consider, unseasonably higher growth in the fourth quarter of last year with typically slow fourth quarter seasonality we've had historically experienced returning here in the fourth quarter of 2018. We believe these results, excluding those two factors, is in line with our historical annual growth rate of 10% to 15% range on an annual basis. Moving to gross profit. It increased by approximately $300,000 or 6.4% from $4.3 million in the fourth quarter of fiscal '17 to $4.6 million this year. $200,000 of that increase was derived from our Lancaster division. Our gross profit margin was relatively unchanged year-over-year 68.3% for the fourth quarter of fiscal '18 compared to 68.5% a year ago. That small 20% basis point decrease was mainly the result of increased amortization of software development costs. SG&A expenses decreased to $2.2 million or 33.4% of revenue for the fourth quarter, a decrease of 8.2% compared…

Thank you [Operator Instructions]. Our first question is from Howard Halpern, and his first question. Mr. Howell, what is your assessment of the Company after your first quarter on the job? And where do you anticipate the Company’s growth opportunities lie in fiscal year ’19 and fiscal year ’20?

My assessment of the Company is very positive, and leaves me excited about the opportunities that we’re seeing in our future. It’s been very good to both confirm what I knew about the Company looking out from the outside to confirm those things that perceptions that I had, and as well get to know and understand the talent that exists in the Company. The software side of the business, which was the origin of the Company, is very strong and deep in its scientific prowess and skill and its track record of delivering very consistent upgrades and updates and new features to the portfolio software product speaks for itself, and keeps its portfolio of products at the cutting edge and upgrade value to our clients. On the consulting side of the house, I don't know that I know too many organizations that have the breadth of skill across all the modalities of modeling technique that exist out there and the talent is rich and supported a growth rate that is outpacing the software side of the business. And that speaks to the dynamic in the marketplace today, in which clients of the industry is adopting rapidly and wanting to adopt more rapidly than it can fuel with its own internal resources. And therefore, we see our clients reaching out more and more outside their walls to organizations, such Simulations Plus to perform projects on their behalf to implement model based techniques in the drug development process. So when I look out in terms of whether this growth going to come out in '19 and in '20, the years ahead of us, I see growth coming from both sides of the business, the software side, both in terms of its continued growth of its existing products. As I indicated in my…

And just as a follow-up to that question, over the next few years. Do you anticipate a revenue mix shift towards consulting services versus software? And can it get to a 50-50 mix?

Well, obviously the service side of the businesses is growing faster than the software side right now. So the momentum is in that direction. Ultimately, having a balanced mix between the two and enjoying the benefits of a profitable software model compared to the service side of the business keeps us focused on keeping that mix level, so that our profitability is not affected. So between the mix of internal or organic growth and acquisitions, we will try to keep the software or margins for the company overall as they are now but certainly the demand right now on the service side is driving that side of our business faster.

And the next question is on PKPlus. What does the sales pipeline look for PKPlus and when might a ramp in orders occur? Shawn O’Connor: Well, we've seen some uptick in terms of the activity there in the fourth quarter, but it still does remain a small portion of our business. It’s a product that’s introduced into a space in terms of the clients use of that product heavily process defined space. The pharmaceutical companies install software products and build standard operating procedures, SOPs around the products that they use. And to displace an existing product with the new product tends to be a long sales cycle process, because there’s a domino effect in terms of the work effort in our clients in that regard. PKPlus’s application elsewhere in outside of SOP environment and we're certainly focused in there to sell-through. We’re seeing that effect and yet it's still a small piece of our business at this point in time.

The next question, is everything to report on progress being made on your AI projects, or AEROModeler and MRIModeler, or any additional opportunities for new products? Shawn O’Connor: So my comments in that space would be that we put our best man on the job. Walt has taken on a role in terms of exploring areas in which we might be able to apply our existing IP and knowhow. We have successfully accomplished in the data mining space and the machine learning space, I should say, in AI space, some success in our existing products and the opportunity to leverage that into new areas, AEROModeler and in the MRI were projects of the past that we’re looking as to how we could leverage those, or other applications of our technology. And nothing to report at this stage but the success we’ve had in the past in that area certainly should support an opportunity for us to be successful and extend that into the future.

The next question is what type of traction are Simulation software products seeing in non- pharmaceutical customers and what is the growth potential? Shawn O’Connor: We had some success we believe we’ve always had, as I understand it historically in that regard. And last year, our software sales outside of pharmaceutical biotech generics space, our revenues grew their 20% year-over-year. But again, that is a small portion that only represents 5% to 6% of our total software where revenues. The opportunity exists but our organization is disproportionately very focused on our pharma clients and most of growth I would believe will come from that space.

Thank you. The next question, can you offer anticipated tax rate range for fiscal year '19? Shawn O’Connor: I'm going to hand that one off to John.

I think we're looking somewhere in the low to -- close to mid 20% range, our tax credits -- our income has grown, have less and less of an effect. So expecting somewhere around the 24%, 25% rate this next year, depending on where some of those credits and some of those numbers land.

Thank you, John. Next question, is there a covered cash balance?

Well, we certainly have forecasts and plans as we look out into the future and in the output likely cash that would be generated from that outlook. We don't specifically identify cash as being a primary target for the business.

Thank you. The next question, how's the hiring and retaining of scientists progressing?

It's an area of focus for us right now. The Company has a tremendous retention record with the population of scientific talents over the organization has a longevity to it that speaks well to the Company. And we've had success during the 2018 timeframe in terms of growing that talent inside the organization. As I indicated before, our ability to support the growth for demand that we're seeing on the services side will require us to be that much more successful as we move into the coming years. So it's a highlighted focus area for us at this point in time.

Thank you. And at this point, we have no additional questions. Shawn, I'll turn it back over to you for closing comments. Shawn O’Connor: I appreciate everyone's interest in joining the call today. I've enjoyed my first months with the organization, and look forward to speaking with you in the coming months and reporting successes of the Company as we move forward. Thank you. Thank you all very much.