Immersion Corporation Reports Fourth Quarter and Full Year 2016 Results
Posts Fourth Quarter Revenues of
Results for the quarter ended
Total revenues for the fourth quarter of 2016 were
Net loss for the fourth quarter of 2016 was
Non-GAAP net loss for the fourth quarter of 2016 was
Results for the year ended
Revenues for 2016 were
Net loss for 2016 was
Non-GAAP net loss for 2016 was
"2016 was a year of exciting innovation, with wide-spread adoption of
haptics across all of our target markets and a broadening of our
customer base," said
"We exit the year with a strong and healthy balance sheet, which enables us to continue to execute on our strategic objectives. We remain focused on the importance of defending the value of our 20+ years of innovation, and protecting the interests of our stakeholders."
"In the near-term, we recognize that there will be some trade-offs with
regards to financial performance as we vigorously defend our IP. In
addition to normal considerations, our guidance for 2017 takes into
account the ongoing litigation with Apple and the current unlicensed
status of Samsung. Even with these considerations, we expect 2017
"Looking ahead, we are confident that our innovative solutions and IP
increasingly will be recognized as a ‘must have' by existing and new
customers, leading to measurable value creation and growth prospects in
2017 and beyond," concluded
Recent Business Highlights
- Signed a multi-year licensing agreement with Nintendo to allow Immersion to adapt its TouchSense® technology to the new Nintendo SwitchTM system.
- Renewed a license agreement with LG Electronics, Inc. The three-year extension provides a worldwide license for LG to use Immersion's TouchSense technology and Basic Haptics patents in its smartphones, tablets and fitness bands.
- Renewed licensing agreements with Gionee Communication Equipment Co., Ltd. and Xiamen Meitu Mobile Technology Co., Ltd. The China-based smartphone companies have licensed Immersion's TouchSense® Premium solution.
- Signed a patent license agreement with Grayhill, Inc., a designer and manufacturer of a broad line of intuitive human interface components and custom solutions, providing Grayhill with access to Immersion's portfolio of over 2,400 haptic patents and applications for use in touchscreens, touchpads, and touch-enabled user interface panels.
- Announced TouchSense® Force for gaming and VR/AR, allowing developers and peripheral manufacturers to take their products to a whole new level by easily creating sensations of pushing, pulling, grasping, and pulsing by integrating high-quality touch effects into their games and devices.
Extended its partnership with
AdColony, the largest independent mobile advertising platform in the world, to provide TouchSense® Ads - ads you can feel - to brands and advertisers on the AdColony mobile advertising platform.
Announced the results of a scientific media trial conducted with
IPG Media Labthat found touch-enabled technology in video ads leads to a 50% lift in brand favorability, among other notable findings.
- Entered into a cooperation agreement with VIEX Capital Advisors, LLC and its affiliates.
Related to the Apple litigation, we received the Markman ruling and
the institution decision on four IPR's filed with three remaining to
be received. The hearing before the ITC is scheduled to be held
April 27 to May 5, 2017with the initial determination scheduled for August 11, 2017.
Conference Call Information
Immersion will host a conference call with company management on
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.
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 measurable value creation and
growth prospects in 2017 and beyond and 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 most recent Quarterly
Report on Form 10-Q 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)
|Condensed Consolidated Balance Sheets|
|Cash and cash equivalents||$||56,865||$||25,013|
|Accounts receivable, net||1,382||1,213|
|Prepaid expenses and other current assets||2,876||2,790|
|Total current assets||94,030||68,934|
|Property and equipment, net||4,016||4,589|
|Deferred income tax assets||359||24,633|
|Prepaid income taxes||4,997||6,995|
|Intangibles and other assets, net||365||264|
|Other current liabilities||4,409||2,999|
|Total current liabilities||21,022||15,185|
|Long-term deferred revenue||26,393||2,516|
|Other long-term liabilities||1,012||1,099|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
|(1) Derived from Immersion's annual audited consolidated financial statements.|
|Condensed Consolidated Statements of Operations|
|(In thousands, except per share amounts)|
|Royalty and license||$||8,918||$||15,782||$||56,030||$||61,677|
|Development, services, and other||375||788||1,056||1,716|
|Costs and expenses:|
|Cost of revenues||58||93||191||440|
|Sales and marketing||3,878||3,596||14,613||14,674|
|Research and development||3,159||4,088||13,388||14,785|
|General and administrative||13,406||7,502||44,151||28,755|
|Amortization of intangibles||-||2||6||20|
|Total costs and expenses||20,501||15,281||72,349||58,674|
|Operating Income (loss)||(11,208||)||1,289||(15,263||)||4,719|
|Interest and other income (expense)||(155||)||(206||)||754||(270||)|
Income (loss) from continuing operations before benefit (provision) for income taxes
|Benefit (provision) for income taxes||(26,785||)||55||(25,521||)||(1,591||)|
|Income (loss) from continuing operations||(38,148||)||1,138||(40,030||)||2,858|
|Income from discontinued operations||-||-||649||-|
|Net Income (loss)||$||(38,148||)||$||1,138||$||(39,381||)||$||2,858|
|Basic net income (loss) per share|
|Shares used in calculating basic net income (loss) per share||28,860||28,305||28,759||28,097|
|Diluted net income (loss) per share|
|Shares used in calculating diluted net income (loss) per share||28,860||29,322||28,759||29,015|
|Reconciliation of GAAP Net Income (loss) to Non-GAAP Net Income (loss)|
|(In thousands, except per share amounts)|
|GAAP net income (loss)||$||(38,148||)||$||1,138||$||(39,381||)||$||2,858|
|Add: Provision (benefit) for income taxes||26,785||(55||)||25,521||1,591|
Less: Non-GAAP benefit (provision) for income taxes on continuing operations (at 19%)
|Add: Stock-based compensation||1,308||1,225||6,111||5,470|
|Non-GAAP net income (loss)||$||(7,896||)||$||2,102||$||(4,992||)||$||9,074|
|Non-GAAP net income (loss) per share||$||(0.27||)||$||0.07||$||(0.17||)||$||0.31|
|Shares used in calculating Non-GAAP net income (loss) per share||28,860||29,322||28,759||29,015|
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