Immersion Corporation Reports Fourth Quarter and Fiscal 2014 Results
Record December Quarter Revenue of
Record Fiscal
2014 Revenue of
Results for the three months ended
Total revenues for the fourth quarter of 2014 were
Net income for the fourth quarter of 2014 was
Non-GAAP net income for the fourth quarter of 2014 was
Results for the twelve months ended
Revenues for fiscal 2014 were
Net income for fiscal 2014 was
Non-GAAP net income for fiscal 2014 was
As of
Management Commentary
"Fiscal 2014 was another period of strong progress for Immersion as we
continued on a trajectory of profitable growth, culminating in record
annual revenues," said
Business Outlook
"Immersion is on a path to achieve another year of strong, profitable
growth in 2015 as we continue to capitalize on the growing opportunities
in front of us. Based on our current outlook, we expect revenues for
2015 to be in the range of
Business Highlights
Recent developments reflect the continued expansion of Immersion's global mobile OEM customer base in key growth regions and the strengthening of the company's senior leadership team and Board, including:
-
New license agreements with OEMs in
China for use of Immersion's TouchSense® TS3000 software with MEIZU and Gionee. - New license agreement with LeTV, a leading Chinese entertainment company, to bring tactile video to its customers using Immersion's TouchSense Engage solution.
-
The addition of
Mahesh Sundaram as Vice President of Worldwide OEM Sales. An experienced and accomplished executive in the mobile and consumer entertainment markets, Mahesh is leading Immersion's worldwide OEM sales organization to support the growing opportunities for Immersion technology. -
The election of
John Veschi to the Board of Directors. With deep experience in IP and technology management in the mobile market, John will contribute to Immersion's efforts to expand and monetize its comprehensive IP portfolio.
Conference Call Information
Immersion will host a conference call with company management on
About Immersion (www.immersion.com)
Founded in 1993, Immersion (NASDAQ:IMMR) is the leading innovator in haptic technology; the company's touch feedback solutions deliver a more compelling sense of the digital world. Using Immersion's high-fidelity haptic systems, partners can transform user experiences with unique and customizable touch feedback effects; excite the senses in games, videos and music; restore "mechanical" feel by providing intuitive and unmistakable confirmation; improve safety by reducing distractions while driving; provide realistic touch feedback when performing robotic medical procedures and training simulations; and expand usability when audio and visual feedback are ineffective. Immersion's TouchSense technology provides haptics in mobile phone, automotive, gaming, medical, and consumer electronics products from world-class companies. With approximately 1,900 issued or pending patents in the U.S., China and other countries, Immersion helps bring the digital universe to life. Hear what we have to say at blog.immersion.com.
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 excludes certain non-cash expenses 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 statement regarding positioning Immersion to
capitalize on exciting market opportunities and a growing market
awareness that Immersion's touch technologies can bring richness and
realism to advanced user interfaces in a wide variety of emerging
industries and our expectation that revenues for 2015 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; potentially lengthy sales cycles and design processes; unanticipated difficulties and challenges encountered in development efforts; unexpected costs; failure to retain key personnel; competition; the inherently uncertain nature of litigation which makes future outcomes and timing difficult to predict; the impact of global economic conditions 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 most recent Quarterly
Report on Form 10-Q which is on file with the
Immersion, the Immersion logo, TouchSense, TouchSense TS3000, and
TouchSense Engage 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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2014 | 2013 | ||||||
(Unaudited) | (1) | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 14,380 | $ | 14,136 | |||
Short-term investments | 42,981 | 56,976 | |||||
Accounts and other receivables, net | 3,021 | 598 | |||||
Deferred income taxes | 9,377 | 7,784 | |||||
Prepaid expenses and other current assets | 845 | 690 | |||||
Total current assets | 70,604 | 80,184 | |||||
Property and equipment, net | 1,207 | 944 | |||||
Deferred income tax assets | 25,419 | 29,066 | |||||
Intangibles and other assets, net | 291 | 381 | |||||
TOTAL ASSETS | $ | 97,521 | $ | 110,575 | |||
LIABILITIES | |||||||
Accounts payable | $ | 669 | $ | 682 | |||
Accrued compensation | 1,906 | 4,680 | |||||
Other current liabilities | 2,225 | 1,653 | |||||
Deferred revenue | 7,779 | 8,920 | |||||
Total current liabilities | 12,579 | 15,935 | |||||
Long-term deferred revenue | 7,827 | 13,441 | |||||
Other long-term liabilities | 512 | 528 | |||||
TOTAL LIABILITIES | 20,918 | 29,904 | |||||
STOCKHOLDERS' EQUITY | 76,603 | 80,671 | |||||
TOTAL LIABILITIES & |
|||||||
STOCKHOLDERS' EQUITY | $ | 97,521 | $ | 110,575 | |||
(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 | Twelve Months | |||||||||||||||
Ended |
Ended |
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2014 | 2013 | 2014 | 2013 | |||||||||||||
(1) | ||||||||||||||||
Revenues: | ||||||||||||||||
Royalty and license | $ | 13,331 | $ | 11,574 | $ | 51,804 | $ | 46,154 | ||||||||
Product sales | 0 | 61 | 0 | 105 | ||||||||||||
Development, services, and other | 288 | 432 | 1,133 | 1,211 | ||||||||||||
Total revenues | 13,619 | 12,067 | 52,937 | 47,470 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenues | 135 | 76 | 460 | 462 | ||||||||||||
Sales and marketing | 3,258 | 2,646 | 10,896 | 9,338 | ||||||||||||
Research and development | 3,011 | 3,007 | 11,793 | 10,883 | ||||||||||||
General and administrative | 6,009 | 5,671 | 23,754 | 23,104 | ||||||||||||
Amortization of intangibles | 12 | 19 | 67 | 79 | ||||||||||||
Total costs and expenses | 12,425 | 11,419 | 46,970 | 43,866 | ||||||||||||
Operating Income | 1,194 | 648 | 5,967 | 3,604 | ||||||||||||
Interest and other income | 245 | (12 | ) | 352 | 68 | |||||||||||
Income from continuing operations before provision for income taxes | 1,439 | 636 | 6,319 | 3,672 | ||||||||||||
Benefit (provision) for income taxes | (422 | ) | 36,767 | (2,196 | ) | 36,483 | ||||||||||
Net Income | $ | 1,017 | $ | 37,403 | $ | 4,123 | $ | 40,155 | ||||||||
Basic net income per share | $ | 0.04 | $ | 1.31 | $ | 0.15 | $ | 1.42 | ||||||||
Shares used in calculating basic net income per share | 27,733 | 28,614 | 28,246 | 28,190 | ||||||||||||
Diluted net income per share | $ | 0.04 | $ | 1.26 | $ | 0.14 | $ | 1.37 | ||||||||
Shares used in calculating diluted net income per share | 28,430 | 29,675 | 29,144 | 29,338 | ||||||||||||
(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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2014 | 2013 | 2014 | 2013 | |||||||||
GAAP Net Income | $ | 1,017 | $ | 37,403 | $ | 4,123 | $ | 40,155 | ||||
Stock-based compensation | 1,237 | 1,206 | 5,295 | 4,644 | ||||||||
Non-GAAP Net Income | $ | 2,254 | $ | 38,609 | $ | 9,418 | $ | 44,799 | ||||
Non-GAAP Earnings Per Share | $ | 0.08 | $ | 1.30 | $ | 0.32 | $ | 1.53 | ||||
Shares used in calculating Non-GAAP Earnings per Share | 28,430 | 29,675 | 29,144 | 29,338 | ||||||||
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