Immersion Corporation Reports Fourth Quarter and Fiscal 2011 Results
Total revenues for the fourth quarter of 2011 were
Revenues for fiscal 2011 were
"2011 was a productive year for Immersion as we successfully
transitioned to a scalable licensing model, with royalty and licensing
revenues growing 16% year-over-year and reaching 88% of total revenues,"
said Immersion CEO
As of
Business Outlook
"As we look at 2012, we believe Immersion is at the center of a growing
opportunity for haptics in multiple markets including mobile, gaming and
automotive. We remain focused on building upon our position as the
premier partner and leading innovator in the haptic space. Based on our
current outlook, we expect revenues for 2012 to be in the range of
Corporate Highlights
Immersion recently:
- Announced HD Integrator, a new OEM build-time tool for Android mobile devices that allows OEMs to use high fidelity haptics to provide meaningful information and communicate more clearly with users via the sense of touch.
-
Saw the first tablet launch with a high-definition haptic experience
in the Pantech Element. Utilizing Immersion's piezo reference design,
the tablet combines a single piezo actuator from
Samsung Electro-Mechanics Corp and the DRV-8662 haptic piezo driver from Texas Instruments with Immersion's TouchSense® 5000 control software and Integrator tools to produce cutting-edge touch feedback effects throughout the user interface and applications. -
Filed a complaint with the
U.S. International Trade Commission ("ITC") against Motorola Mobility. The complaint alleges that certain Motorola Mobility Android-based smartphones infringe six Immersion patents that cover various uses of haptic effects in connection with touchscreens. Immersion has also filed a patent infringement complaint against Motorola Mobility in theU.S. District Court for the District of Delaware . - Saw additional applications designed by numerous third party developers that incorporate haptic effects by using Immersion's SDK.
-
Signed a licensing agreement for its TouchSense® 1000 software with
Sanyo Automedia Sdn. Bhd ., a leading supplier of innovative factory installed automotive systems, such as integrated center stacks.
Conference Call Information
Immersion will host a conference call with company management on
About Immersion (www.immersion.com)
Founded in 1993,
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 because it is useful in understanding the company's performance as it excludes non-cash and other special charges 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, the statements regarding our expectations for fiscal
2012 revenues to 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, continued disruption in the markets for Immersion's
and its licensees' products due to the recent earthquake and tsunami in
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 2010 and its most recent Quarterly Report on Form 10-Q, which are on
file with the
Immersion, the Immersion logo, and TouchSense are 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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December 31, | ||||||
| 2011 | 2010 | ||||||
| (Unaudited) | (1) | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 7,298 | $ | 12,243 | |||
| Short-term investments | 48,987 | 48,961 | |||||
| Accounts and other receivables, net | 1,487 | 815 | |||||
| Inventories | 423 | 406 | |||||
| Deferred income taxes | 215 | 342 | |||||
| Prepaid expenses and other current assets | 479 | 3,821 | |||||
| Total current assets | 58,889 | 66,588 | |||||
| Property and equipment, net | 1,737 | 1,931 | |||||
| Intangibles and other assets, net | 14,053 | 12,356 | |||||
| TOTAL ASSETS | $ | 74,679 | $ | 80,875 | |||
| LIABILITIES | |||||||
| Accounts payable | $ | 365 | $ | 393 | |||
| Accrued compensation | 2,830 | 3,507 | |||||
| Other current liabilities | 2,054 | 1,488 | |||||
| Deferred revenue and customer advances | 4,120 | 4,429 | |||||
| Total current liabilities | 9,369 | 9,817 | |||||
| Long-term deferred revenue | 13,229 | 16,494 | |||||
| Deferred income tax liabilities | 215 | 342 | |||||
| Other long-term liabilities | 245 | 538 | |||||
| TOTAL LIABILITIES | 23,058 | 27,191 | |||||
| STOCKHOLDERS' EQUITY | 51,621 | 53,684 | |||||
| TOTAL LIABILITIES & | |||||||
| STOCKHOLDERS' EQUITY | $ | 74,679 | $ | 80,875 | |||
| (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) | |||||||||||||||||
| Three Months | Twelve Months | ||||||||||||||||
|
Ended |
Ended December 31, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| (Unaudited) | (Unaudited) | (1) | |||||||||||||||
| Revenues: | |||||||||||||||||
| Royalty and license | $ | 6,806 | $ | 5,402 | $ | 26,916 | $ | 23,250 | |||||||||
| Product sales | 691 | 768 | 2,583 | 6,803 | |||||||||||||
| Development contracts and other | 193 | 223 | 1,136 | 1,071 | |||||||||||||
| Total revenues | 7,690 | 6,393 | 30,635 | 31,124 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of revenues | 342 | 314 | 1,255 | 2,901 | |||||||||||||
| Sales and marketing | 1,683 | 1,956 | 7,085 | 8,033 | |||||||||||||
| Research and development | 1,861 | 2,265 | 8,386 | 8,738 | |||||||||||||
| General and administrative | 3,201 | 3,235 | 12,568 | 15,043 | |||||||||||||
| Amortization and impairment of intangibles | 378 | 587 | 1,394 | 1,237 | |||||||||||||
| Total costs and expenses | 7,465 | 8,357 | 30,688 | 35,952 | |||||||||||||
| Operating Income (loss) | 225 | (1,964 | ) | (53 | ) | (4,828 | ) | ||||||||||
| Interest and other income | 32 | 60 | 204 | 272 | |||||||||||||
| Income (loss) from continuing operations before provision for income taxes | 257 | (1,904 | ) | 151 | (4,556 | ) | |||||||||||
| Provision for income taxes | (527 | ) | (403 | ) | (1,816 | ) | (1,501 | ) | |||||||||
| Loss from continuing operations | (270 | ) | (2,307 | ) | (1,665 | ) | (6,057 | ) | |||||||||
| Discontinued operations: | |||||||||||||||||
| Gain (loss) on sales of discontinued operations | - | (13 | ) | 61 | 130 | ||||||||||||
| Net Loss | $ | (270 | ) | $ | (2,320 | ) | $ | (1,604 | ) | $ | (5,927 | ) | |||||
| Basic and diluted net loss per share | |||||||||||||||||
| Continuing operations | $ | (0.01 | ) | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.22 | ) | |||||
| Discontinued operations | - | - | - | 0.01 | |||||||||||||
| Total | $ | (0.01 | ) | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.21 | ) | |||||
| Shares used in calculating basic and diluted net loss per share | 28,471 | 28,190 | 28,564 | 28,113 | |||||||||||||
| (1) Derived from Immersion's annual audited consolidated financial statements. | |||||||||||||||||
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| Reconciliation of GAAP Net Income to Adjusted EBITDA | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months | Twelve Months | ||||||||||||||||
|
Ended |
Ended |
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| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| GAAP Net Loss | $ | (270 | ) | $ | (2,320 | ) | $ | (1,604 | ) | $ | (5,927 | ) | |||||
| Interest and other income | (32 | ) | (60 | ) | (204 | ) | (272 | ) | |||||||||
| Provision for income taxes | 527 | 403 | 1,816 | 1,501 | |||||||||||||
| Depreciation and amortization | 411 | 253 | 1,128 | 1,095 | |||||||||||||
| Amortization and impairment of intangibles | 378 | 587 | 1,394 | 1,237 | |||||||||||||
| Stock-based compensation | 850 | 979 | 3,555 | 3,409 | |||||||||||||
| Restatement costs | - | 1 | - | 1,676 | |||||||||||||
| Restructuring costs and sale of business | - | - | - | 41 | |||||||||||||
| Discontinued operations | - | 13 | (61 | ) | (130 | ) | |||||||||||
| Total adjustments | 2,134 | 2,176 | 7,628 | 8,557 | |||||||||||||
| Adjusted EBITDA | $ | 1,864 | $ | (144 | ) | $ | 6,024 | $ | 2,630 | ||||||||
Edelman
reagan.crossley@edelman.com
or
jennifer@blueshirtgroup.com
Source:
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