Immersion Corporation Reports First Quarter 2017 Results
Results for the quarter ended
Total revenues for the first quarter of 2017 were
Net loss for the first quarter of 2017 was
Non-GAAP net loss for the first quarter of 2017 was
As of
Management Commentary
"I am pleased with the progress we have made in executing our strategy,
growing our key markets and in particular, having reached a major
milestone in our IP strategy with the conclusion of the hearing in the
Immersion versus Apple case at the ITC," said
"Based on our current outlook, we are maintaining our 2017 revenue
outlook of
Recent Business Highlights
- Renewed license agreement with Meizu, which includes use of Immersion's TouchSense® Premium solution providing the highest quality haptics available including support for Pressure Haptics. Meizu is also working with Immersion to achieve optimized haptic experiences through effect customization and UI analysis, hardware tuning and software integration services.
- Expanded license agreement with Lenovo to include the adoption of Immersion's TouchSense® technology in its new A12, 2-in-1 tablet. With Immersion technology, consumers can now experience a highly interactive input experience with the sensation of keys in Lenovo's industry-leading keyless keyboard.
- Kyocera became the first licensee for TouchSense® Lite technology, a turn-key, cost-efficient solution enabling standard quality haptics leveraging a pre-designed library of tactile effects.
-
Teads and Immersion announced a new agreement to offer and distribute
TouchSense® Ads, "Ads You Can Feel", in
Latin America andEurope . As a result of this partnership, Teads will serve TouchSense® Ads on its mobile web advertising platform, paving the way for its clients to leverage the power of touch in reaching audiences with their brand messages.
Conference Call Information
Immersion will host a conference call with company management on
About Immersion
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.
Use of Non-GAAP Financial Measures
Immersion reports all financial information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult to understand if limited to reviewing only GAAP financial measures. Immersion discloses this non-GAAP information, such as Non-GAAP net income and Non-GAAP net income per diluted share, because it is useful in understanding the company's performance as it more closely reflects its expected long-term effective tax rates and excludes certain non-cash expenses and other special charges, such as deferred tax assets valuation allowance, that many investors feel may obscure the company's true operating performance. Likewise, management uses these non-GAAP financial measures to manage and assess the profitability of its business. Investors are encouraged to review the related GAAP financial measures.
Forward-looking Statements
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 expectation that revenues for 2017 will be in the
range of
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, which include, but are not limited to, potential and actual claims and proceedings, including litigation involving Immersion's intellectual property; delay in or failure to achieve commercial demand for Immersion's or its licensees' products; a delay in or failure to achieve the acceptance of force feedback as a critical user experience; 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 mobile games and wearables; potentially lengthy sales cycles and design processes; 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; ability to retain personnel; 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 which is on file with the
Immersion, the Immersion logo and TouchSense are trademarks or
registered trademarks of
The use of the word "partner" or "partnership" in this press release does not mean a legal partner or legal partnership.
(IMMR - C)
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| Condensed Consolidated Balance Sheets | |||||||
| (In thousands) | |||||||
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| 2017 | 2016 | ||||||
| (Unaudited) | (1) | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 43,110 | $ | 56,865 | |||
| Short-term investments | 32,867 | 32,907 | |||||
| Accounts receivable, net | 1,909 | 1,382 | |||||
| Prepaid expenses and other current assets | 727 | 2,876 | |||||
| Total current assets | 78,613 | 94,030 | |||||
| Property and equipment, net | 3,855 | 4,016 | |||||
| Deferred income tax assets | 359 | 359 | |||||
| Prepaid income taxes | - | 4,997 | |||||
| Intangibles and other assets, net | 369 | 365 | |||||
| TOTAL ASSETS | $ | 83,196 | $ | 103,767 | |||
| LIABILITIES | |||||||
| Accounts payable | $ | 6,951 | $ | 5,951 | |||
| Accrued compensation | 2,079 | 4,753 | |||||
| Other current liabilities | 5,330 | 4,409 | |||||
| Deferred revenue | 4,902 | 5,909 | |||||
| Total current liabilities | 19,262 | 21,022 | |||||
| Long-term deferred revenue | 25,354 | 26,393 | |||||
| Other long-term liabilities | 990 | 1,012 | |||||
| TOTAL LIABILITIES | 45,606 | 48,427 | |||||
| STOCKHOLDERS' EQUITY | 37,590 | 55,340 | |||||
| TOTAL LIABILITIES & | |||||||
| STOCKHOLDERS' EQUITY | $ | 83,196 | $ | 103,767 | |||
| (1) Derived from Immersion's annual audited consolidated financial statements. | |||||||
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| Condensed Consolidated Statements of Operations | ||||||||
| (In thousands, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
|
Ended |
||||||||
| 2017 | 2016 | |||||||
| Revenues: | ||||||||
| Royalty and license | $ | 9,006 | $ | 13,448 | ||||
| Development, services, and other | 218 | 175 | ||||||
| Total revenues | 9,224 | 13,623 | ||||||
| Costs and expenses: | ||||||||
| Cost of revenues | 43 | 26 | ||||||
|
Sales and marketing |
3,305 | 3,803 | ||||||
| Research and development | 3,196 | 4,312 | ||||||
| General and administrative | 15,532 | 10,090 | ||||||
| Total costs and expenses | 22,076 | 18,231 | ||||||
| Operating loss | (12,852 | ) | (4,608 | ) | ||||
| Interest and other income (expense) | 139 | 212 | ||||||
| Loss before benefit (provision) for income taxes | (12,713 | ) | (4,396 | ) | ||||
| Benefit (provision) for income taxes | (152 | ) | 1,701 | |||||
| Net loss | $ | (12,865 | ) | $ | (2,695 | ) | ||
| Basic and diluted net loss per share | $ | (0.44 | ) | $ | (0.09 | ) | ||
| Shares used in calculating basic and diluted net loss per share | 29,024 | 28,493 | ||||||
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| Reconciliation of GAAP Net loss to Non-GAAP Net loss | ||||||||
| (In thousands, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
|
Ended |
||||||||
| 2017 | 2016 | |||||||
| GAAP net loss | $ | (12,865 | ) | $ | (2,695 | ) | ||
| Add: Provision (benefit) for income taxes | 152 | (1,701 | ) | |||||
|
Less: Non-GAAP benefit (provision) for income taxes on continuing operations (at 19%) |
2,415 | 835 | ||||||
| Add: Stock-based compensation | 1,557 | 2,334 | ||||||
| Non-GAAP net loss | $ | (8,741 | ) | $ | (1,227 | ) | ||
| Non-GAAP net loss per share | $ | (0.30 | ) | $ | (0.04 | ) | ||
| Shares used in calculating Non-GAAP net loss per share | 29,024 | 28,493 | ||||||
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