Immersion Corporation Announces Restructuring
Actions strengthen focus on innovation, optimize organizational
structure, and result in annual savings of approximately
As part of these changes, Immersion plans to take the following steps:
Significantly reduce its presence in
Chinato focus primarily on Mobile OEM licensing;
- Focus development efforts to bolster its IP licensing model for the Gaming and VR/AR markets; and
- Cease its efforts in Mobile Advertising.
These steps will increase internal efficiencies through the consolidation of certain sites of operation and will result in the elimination of 56 positions, or approximately 41% of the worldwide employee base.
“The Board and management team are taking immediate and decisive actions
to drive shareholder value by positioning Immersion for profitable
growth and success,” said
Immersion’s leadership in haptics innovation was recently recognized by IEEE. In the 2017 IEEE Spectrum Patent Power Scorecards’ ranking of the technology world’s most valuable patent portfolios, Immersion ranked second out of twenty companies in the computer peripherals and storage category. This reorganization will allow for a more focused and streamlined approach, enabling Immersion to maintain its leadership position in the haptic technology field.
Immersion anticipates annual savings from these actions to be
Immersion, and the Immersion logo are trademarks of Immersion Corporation in the United States and other countries. All other trademarks are the property of their respective owners.
This press release contains “forward-looking statements” that involve
risks and uncertainties as well as assumptions that, if they never
materialize or prove incorrect, could cause the results of
All statements, other than the statements of historical fact, are statements that may be deemed forward-looking statements, including, but not limited to, our expectations as to financial effects of the restructuring and timing of the completion of the restructuring.
Immersion’s actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with Immersion’s business and other factors, which include, but are not limited to, potential and actual claims and proceedings, including litigation involving Immersion’s intellectual property; the impact of litigation developments, including on existing and potential customers; delay in or failure to achieve commercial demand for Immersion’s or its licensees’ products; unexpected difficulties in monetizing the patent portfolio; the commercial success of applications or devices into which Immersion’s technology is licensed; the continued popularity of the target applications for Immersion’s technology; lengthy sales cycles and design processes and effectiveness of Immersion’s sales force; unanticipated difficulties and challenges encountered in development efforts; unexpected costs; the fact that certain target markets are still relatively nascent; risks associated with doing business internationally; litigation costs in any current or future litigation; failure to retain key personnel as a result of the restructuring or otherwise; competition; the inherently uncertain nature of litigation which makes future outcomes and timing difficult to predict; the impact of global economic conditions and foreign currency exchange rates and other factors. Many of these risks and uncertainties are beyond the control of Immersion.
For a more detailed discussion of these factors, and other factors that
could cause actual results to vary materially, interested parties should
review the risk factors listed in Immersion’s Annual Report on Form 10-K
for 2016 and its most recent Quarterly Report on Form 10-Q which are on
file with the
Immersion and the Immersion logo are trademarks or registered trademarks
(IMMR - C)