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Good afternoon, everyone. Thank you for joining us. Hosting the call today is Simulations Plus' CEO, Shawn O'Connor; and the company's CFO, John Kneisel. Before beginning, I would like to remind everyone that 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 can cause or contribute to such differences include, but are not limited to, continued 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 on a timely fashion, the company's ability to continue to attract and retain skilled personnel, and the company's ability to sustain or improve the 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, I would like to turn the call over to Shawn O'Connor. Shawn?

Thank you, Cameron. This was a strong start to what we expect to be another record year for Simulations Plus. We continued our long tradition of profitable growth and returning capital to shareholders. We delivered a record $7.5 million in revenue for the first quarter, up 6.6% compared to the same quarter in the prior fiscal year. Our software revenue growth was strong for the quarter at 10%, versus the same period last year. Our consulting revenues were up 3% for the quarter compared to last year, constrained by resource capacity and two key project initiatives that slipped out of the quarter. Overall, our 6.6% revenue growth in the first quarter of 2019 is in line with our historical annual revenue growth in the 10% to 15% range on an annual basis. The two key project initiations I referred to are both in our DILIsym division. The first, our RENAsym project that is funded by the previously announced $1.7 million SBIR grant completed its Phase 1 effort during the quarter, at which point review of the effort was required before initiating Phase 2. Work effort was suspended awaiting Phase 2 approval, which was not received until after quarter end. Phase 2, which includes $0.9 million of funding for 2019, has now been initiated and is fully staffed. The second is a new contract with a large pharmaceutical company that closed just recently. Under this agreement, DILIsym will develop a QSP model that will provide the ability to predict efficacy of drugs being developed to treat idiopathic pulmonary fibrosis. The development is funded by our large pharmaceutical company partner for up to $2.7 million over the next two-plus year timeframe. Upon completion, DILIsym will retain the rights to the model to market on a software licensing or consulting service basis to…

Thanks, Shawn. The consolidated net revenue for our first quarter of the fiscal year were up 6.6%, as Shawn said, it's approximately $467,000 to $7.5 million, compared to $7.1 for the prior year. By division, Lancaster revenues were up 8% to $4.4 million, Buffalo revenues were up 8% to $2.1 million, and as Shawn said, RTP revenues were slightly up. Consolidated software and software-related revenues were $365,000, just under 10%. The consulting service revenues were up $102,000 or 3.1%. During this quarter, we completed our implementation of the new revenue standard ASC 606, Revenue From Contracts With Customers. This has minimal impact on our current revenue. We expect it may have some impact on the timing of revenue recognition and service revenue margins on certain contracts going forward, but we don't anticipate significant changes to our annual historical service margins due to the minimal number of projects for which the standard change revenue recognition. We used the retrospective method to make the adjustment. This method allows for an adjustment to beginning retained earnings for the effect of the implementation. The total adjustment to retained earnings is about $690,000. A portion of that adjustment will become future revenue over the life of the contract. Gross profit increased slightly, remaining a strong $5.3 million in the first quarter of fiscal -- 2019 for this fiscal quarter, sorry about that. Our cost of sales increased this quarter compared to the prior year due to the growth in labor count, salaries and benefits. That increase accounted for about $307,000. Additional software amortization was about $54,000 and we incurred a $80,000 of direct contract costs; the majority for testing unrelated contracts at our North Carolina division. Gross profit margin for the first quarter of fiscal 2019 was 70.8% compared to 75.4% in the prior year.…

Thank you, John. In summary, this was a solid quarter for Simulations Plus, with good revenue growth reflecting the typical seasonality we have historically experienced. Our revenue outlook is positive, and tracking to our growth expectations for 2019. During the quarter, we initiated efforts to recruit additional staff in support of our service businesses, and invested in our sales and marketing efforts. These investments impacted our expense in this quarter, but will position us well in quarters ahead to achieve anticipated profitable growth. Certain expense lines like R&D will remain higher, but expected revenue growth in coming quarters should move us back towards historic profitability levels as expenses as a percentage of revenues are more in line with historical levels. This was a good start for fiscal 2019. We'll now open the call up for any questions you might have. Cameron?

Thank you, Shawn. [Operator Instructions] I will start off with some of the written questions submitted on the call. Our first question is, for the Lancaster division, what was the revenue renewal rate and how many new licenses were sold for the quarter?

That was in the prepared speech, I'm just flipping to the page. The renewal rates on accounts were 84%, and on fees were 94%. New accounts for the quarter were 210, which was up 6% from the year-ago quarter.

Thank you. And is the 210 numbers, that's the new accounts for the quarter, I believe that might be the total accounts?

New license units for the quarter. Yes.

Great. The second question, is the aggregate level of first quarter '19 SG&A and R&D expenses the new baseline going forward or just incremental sequential increases?

I think if I understand the question right, incremental end of the first quarter here. We've initiated some investments in our service in the organization and the sales and marketing effort. And as revenue steps up in the second, third, and fourth quarter of 2019 on a percentage basis of revenues we will come back in line with historical percentages. SG&A, as an example, stepped up to about 36% in the first quarter. Historically we've been in the 32% to 34% range, and I would anticipate that during the course of the year or for the year as a total, we'll come back to that level. The exception there is R&D expense, which we saw step up midpoint of last year, and that expense level will continue into 2019 at this new percentage of revenue rate.

Thank you. The next question, for the KIWI offering, how is the potential customer pipeline taking shape beyond the current five-year project you're currently implementing?

We continue to market KIWI in an aggressive but slow pace in the marketplace, as the product is developed with feature functionality that's being funded through our client-funded efforts, that product becomes more functional, more useful in the marketplace. And towards -- at the end of it, with the addition of these features we think it'll be more marketable. It is in the marketplace a very muddy marketplace. And what I mean by that is that there are several offerings of that nature, of the KIWI's purpose, in the marketplace. But probably more importantly, the large pharma companies all have internally developed products that serve these purposes. So, the sales and marketing effort is a two-step process of not only demonstrating the prowess of our product against other competitive products, but also in terms of convincing the large pharma to displace their internally built systems with a third-party piece of software. So, still feel good about the direction that we're headed at this point in time, but the pace is going to be impacted by this two-step process in the marketplace.

Thank you. Your next question, what role should the release of DILIsym Version 8A, which released only two days ago, play into the future growth opportunities?

I think our release there demonstrates our ability to, on a very rapid-based process, almost annual basis if not better, in some regards deliver new releases out there to our marketplace with new functionality across our products that enhance not only the abilities that are in the hands of our installed base, but has the potential to extend in to multiple hands, new cubicles, new scientists' functionality that they will find useful and support future new sales in those products. This quarter was DILIsym Version 8, and we expect with each quarter a schedule of release of updates to all of our products.

The next question is what percent of staff growth for this year do you anticipate?

I hesitate to put out a number there. We're aggressively recruiting on the consulting side. Our 9% year-over-year growth experience here in the first quarter is something that we'll be shooting for for the year. It'll be dependant upon our success rate on the recruiting side, but it will be something of that magnitude.

Thank you. The next question is, is there any additional news or updates on the MRI or missile guidance applications?

I would characterize it that our effort there is still exploratory in terms of utilizing our AI and machine learning technology that is already developed and searching for new applications and new extensions of it, be they in those particular areas or remaining within the life sciences arena. While we are investing some time and effort in that, there is nothing of note to update with this quarter other than progress that we're making in terms of identifying potential opportunities, but too early at this stage to speak to at this point.

Thank you. And our final question today is the big picture question. In your view, how far along is -- and is the acceptance of Simulations' software applications within the drug development process?

In general, and globally, the adoption is there conceptually in the implementation of model-based drug development, and the marketplace is moving rapidly forward. And while we've seen some great success across the industry over the last number of years, we're very early stages in terms of the depth of its penetration and fullness of its application. Specifically, with regard to our offerings in the marketplace, you know, we have reported in the past, the evaluations that we've done in terms of the penetration of our products, and those have always worked out to be of 20% or thereabout penetration in terms of the number of scientists that potentially could make use of GastroPlus as an example. So, both as a industry as a whole, and specifically with regard to Simulations Plus, model-based drug development is accepted and the implementation process has begun and our clients in the marketplace in general are moving rapidly to do so. But I would say that we are still in the early stages of seeing it being fully implemented, if you will.

Thank you. That concludes the Q&A session. One final note before the end, Shawn O'Connor, SLP's CEO will also be presenting at the Needham Conference next Wednesday, the 16th. This concludes today's conference call and Webinar. If you missed any part of today's presentation, the replay will be available at our Web site, www.simulations-plus.com. Thank you.