Simulations Plus, Inc. (NASDAQ:SLP) Q2 2020 Earnings Conference Call - Final Transcript

Apr 09, 2020 • 04:15 pm ET

Previous

Simulations Plus, Inc. (NASDAQ:SLP) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

Thank you. [Operator Instructions] We are going to take the questions first from Matt Hewitt with Craig-Hallum. Please wait one second. Matt, you're live. You're now live, Matt.

Analyst
Matt Hewitt

Thank you. [Operator Instructions] We are going to take the questions first from Matt Hewitt with Craig-Hallum. Please wait one second. Matt, you're live. You're now live, Matt.

Executive
Shawn O'Connor

Yeah, Matt, I appreciate the questions and obviously, everyone in most all regards is looking for that date certain that the trend turns downwards that certainty or visibility to return to normalcy will take place. And unfortunately, no one has that crystal ball, and so discussions with clients, they influx, they are evaluating, they are reallocating resources, you see the focus on COVID-related development opportunities that are being pursued. There is a lot of movement in that direction. Existing plans where other therapeutic areas and development are being held to, but being cautious right now. They are not pointing to, we're going to defer this from April 1 start to June 1 start. It's, we're going to defer it from our plan to April 1 start without a date identified going forward.

I think we're all operating in an environment in which we'd able to plan better if we knew when the curve that's downward and that uncertainty just keeps us all in a wait-and-see mode and I think that's the characteristic of term that we get from clients. It's a little bit wait-and-see how things evolve there over the coming days, weeks and hopefully not too many months.

Analyst
Matt Hewitt

Understood. Thank you. And then regarding the Lixoft acquisition, congratulations. Looks like a great fit. And you even touched on some of the potentially cross-selling opportunities. How quickly -- especially given the current environment, how quickly do you anticipate being able to integrate that business and see some of the benefits from the cross-selling?

Executive
Shawn O'Connor

I mean, we're getting excited these things to take some time, but we've been planning in anticipation of the announcement that we made last week and so, have number of efforts, plans, engagement points between the new organization and are starting to take hold. In the coming months, I think the plans both in terms of sales and marketing as well as product development will begin to take shape. I think that there are a -- there is a population of consulting opportunities that are out there, all subject to the same COVID issues that we have addressed already here, but I think in that regard, there is a flow of business that was waiting for someone to catch it. And now with our consulting resources, we should be able to pick up the ball there relatively quickly. So I think things will move very quickly in this regard. It's a product space that isn't is adjacent to us, familiar to us. Our clients are the same. And so, our ability to consolidate sales and marketing efforts should go very smooth plan very quickly.

Analyst
Matt Hewitt

Okay. And then maybe one last one from