Immersion Corporation Reports Fourth Quarter and Full Year 2015 Results
Posts Record Fourth Quarter Revenues of
Results for the quarter ended
Total revenues for the fourth quarter of 2015 were
Non-GAAP net income for the fourth quarter of 2015 was
Results for the year ended
Revenues for 2015 were
Net income for 2015 was
Non-GAAP net income for 2015 was
As of
Management Commentary
"Our record fourth quarter and annual top-line results were driven by
healthy, investment-led yet fiscally responsible decisions and
execution," said
Business Outlook
"As we focus on 2016 and beyond, we are excited about our prospects but also determined to protect our position and valuable technologies while executing effectively on our opportunities. We will continue to invest strategically in key areas to maintain our leadership position and bring increasing value to our customers and partners."
"Our license with Samsung expired at the end of 2015 and we are
dedicated to ensuring that any new agreement covering uses of our
technology appropriately compensates us for the value we bring as the
leading provider of touch feedback technology. At this point, as we
contemplate our guidance for 2016, we must take into account the current
uncertainty regarding Samsung as well as the anticipated cost of the
lawsuits we recently filed against Apple and AT&T. Even with these
considerations and absent a renewal of the Samsung license, we are
pleased to report that given the overall strength of our existing
business, we are currently expecting 2016 revenues of
CFO Retirement
Immersion also announced the retirement of
Business Highlights
Immersion recently:
-
Filed patent infringement complaints with the
U.S. International Trade Commission ("ITC") and in theU.S. District Court for the District of Delaware against Apple Inc., AT&T Inc., andAT&T Mobility LLC . The complaints allege that all versions of the Apple iPhone 6, Apple iPhone 6s, and Apple Watch infringe certain Immersion patents covering haptic feedback systems and methods in electronic devices. -
Entered into an agreement with Tencent, one of the leading internet
companies in
China , to adopt haptics in Tencent's upcoming 3D action role playing game, "Kowloon War." Immersion will work withTimi Studios , Tencent's in-house creative studio, to design and develop tactile effects for the game. -
Appointed
Todd Whitaker as the vice president of marketing. With successful tenures at industry leading organizations, Whitaker joins Immersion to lead the company's worldwide marketing organization as it continues to grow and gain adoption of its innovative haptic technology offerings. -
Announced the launch of a new "Games
You Can Feel" collection on Google Play featuring 15 games enabled
with Immersion's haptic technology solution for mobile games -
TouchSense® Haptic Enabling Kit, including "PAC-MAN Championship
Edition DX," from
BANDAI NAMCO Entertainment America, Inc. , a leading interactive entertainment publisher. The collection is a showcase of new and popular Android game titles that engage users' sense of touch with a tactile experience.
Conference Call Information
Immersion will host a conference call with company management on
About Immersion
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, 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 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 positioning Immersion to
capitalize on market opportunities and our expectation that revenues for
2016 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 2014 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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(Unaudited) | (1) | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 25,013 | $ | 14,380 | |||
Short-term investments | 39,918 | 42,981 | |||||
Accounts and other receivables, net |
1,213 | 3,021 | |||||
Deferred income taxes | — | 9,377 | |||||
Prepaid expenses and other current assets | 2,790 | 845 | |||||
Total current assets | 68,934 | 70,604 | |||||
Property and equipment, net | 4,589 | 1,207 | |||||
Deferred income tax assets | 24,633 | 25,419 | |||||
Prepaid income taxes | 6,995 | — | |||||
Intangibles and other assets, net | 264 | 291 | |||||
TOTAL ASSETS | $ | 105,415 | $ | 97,521 | |||
LIABILITIES | |||||||
Accounts payable | $ | 650 | $ | 669 | |||
Accrued compensation | 4,840 | 1,906 | |||||
Other current liabilities | 2,999 | 2,225 | |||||
Deferred revenue | 6,696 | 7,779 | |||||
Total current liabilities | 15,185 | 12,579 | |||||
Long-term deferred revenue | 2,516 | 7,827 | |||||
Other long-term liabilities | 1,099 | 512 | |||||
TOTAL LIABILITIES | 18,800 | 20,918 | |||||
STOCKHOLDERS' EQUITY | 86,615 | 76,603 | |||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 105,415 | $ | 97,521 | |||
(1) Derived from Immersion's annual audited consolidated financial statements. | |||||||
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Condensed Consolidated Statements of Income | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(1) | ||||||||||||||||
Revenues: | ||||||||||||||||
Royalty and license | $ | 15,782 | $ | 13,331 | $ | 61,677 | $ | 51,804 | ||||||||
Development, services, and other | 788 | 288 | 1,716 | 1,133 | ||||||||||||
Total revenues | 16,570 | 13,619 | 63,393 | 52,937 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenues | 93 | 135 | 440 | 460 | ||||||||||||
Sales and marketing | 3,596 | 3,258 | 14,674 | 10,896 | ||||||||||||
Research and development | 4,088 | 3,011 | 14,785 | 11,793 | ||||||||||||
General and administrative | 7,502 | 6,009 | 28,755 | 23,754 | ||||||||||||
Amortization of intangibles | 2 | 12 | 20 | 67 | ||||||||||||
Total costs and expenses | 15,281 | 12,425 | 58,674 | 46,970 | ||||||||||||
Operating Income | 1,289 | 1,194 | 4,719 | 5,967 | ||||||||||||
Interest and other income | 44 | 369 | 177 | 580 | ||||||||||||
Other expense | (250 | ) | (124 | ) | (447 | ) | (228 | ) | ||||||||
Income before provision for income taxes | 1,083 | 1,439 | 4,449 | 6,319 | ||||||||||||
Benefit (provision) for income taxes | 55 | (422 | ) | (1,591 | ) | (2,196 | ) | |||||||||
Net Income | $ | 1,138 | $ | 1,017 | $ | 2,858 | $ | 4,123 | ||||||||
Basic net income per share | $ | 0.04 | $ | 0.04 | $ | 0.10 | $ | 0.15 | ||||||||
Shares used in calculating basic net income per share | 28,305 | 27,733 | 28,097 | 28,246 | ||||||||||||
Diluted net income per share | $ | 0.04 | $ | 0.04 | $ | 0.10 | $ | 0.14 | ||||||||
Shares used in calculating diluted net income per share | 29,322 | 28,430 | 29,015 | 29,144 | ||||||||||||
(1) Derived from Immersion's annual audited consolidated financial statements. | ||||||||||||||||
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Reconciliation of GAAP Net Income to Non-GAAP Net Income | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP Net Income | $ | 1,138 | $ | 1,017 | $ | 2,858 | $ | 4,123 | ||||||||
Add: Stock-based compensation | 1,225 | 1,237 | 5,470 | 5,295 | ||||||||||||
Add: GAAP Provision for income taxes | (55 | ) | 422 | 1,591 | 2,196 | |||||||||||
Less: Non-GAAP provision for income taxes (at 19%) | (206 | ) | (273 | ) | (845 | ) | (1,201 | ) | ||||||||
Non-GAAP Net Income | $ | 2,102 | $ | 2,403 | $ | 9,074 | $ | 10,413 | ||||||||
Non-GAAP Earnings Per Share | $ | 0.07 | $ | 0.08 | $ | 0.31 | $ | 0.36 | ||||||||
Shares used in calculating Non-GAAP Earnings per Share | 29,322 | 28,430 | 29,015 | 29,144 |
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