Immersion Corporation Reports Fourth Quarter and Full Year 2017 Results
Results for the quarter ended
Total revenues for the fourth quarter of 2017 were
Net loss for the fourth quarter of 2017 was
Non-GAAP net loss for the fourth quarter of 2017 was
Results for the year ended
Revenues for 2017 were
Net loss for 2017 was
Non-GAAP net loss for 2017 was
As of
Management Commentary and Business Outlook
“Immersion has been and will continue to be, the torchbearer of
haptics,” said
“Our financial outlook for 2018 has been estimated in accordance with
ASC 606 and based on current expectations regarding existing and
anticipated fixed license fee contracts, independent of possible
litigation outcomes. As such, we anticipate annual revenues of
Recent Business Highlights
- Entered into settlement and license agreements with Apple, the terms of which are confidential.
- Signed a multi-year license agreement with Marquardt GmbH, providing Marquardt with access to Immersion’s patented haptic technology for use in its automotive solutions.
-
Signed a multi-year license agreement whereby
Japan's Nippon Seiki Co., Ltd., a global supplier of control panels for home, office and factory appliances, will license Immersion's technology for its line of printer and copier products.
Conference Call Information
Immersion will host a conference call with company management on
About Immersion
Adoption of Revenue Accounting Standard ASC 606
On
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 loss and Non-GAAP net loss per 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 and restructuring costs, 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 2018 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; the impact of litigation developments on existing and potential customers; delay in or failure to achieve commercial demand for Immersion’s or its licensees’ products; the impact of new accounting standards that will affect key items such as revenue recognition and sales commissions; 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 and its most recent Quarterly Report on Form 10-Q which are 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)
|
Immersion Corporation |
||||||||
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| (Unaudited) | (1) | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 24,622 | $ | 56,865 | ||||
| Short-term investments | 21,916 | 32,907 | ||||||
| Accounts receivable, net | 806 | 1,382 | ||||||
| Prepaid expenses and other current assets | 736 | 2,876 | ||||||
| Total current assets | 48,080 | 94,030 | ||||||
| Property and equipment, net | 3,150 | 4,016 | ||||||
| Deferred income tax assets | 401 | 359 | ||||||
| Prepaid income taxes | - | 4,997 | ||||||
| Other assets, net | 344 | 365 | ||||||
| TOTAL ASSETS | $ | 51,975 | $ | 103,767 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 6,647 | $ | 5,951 | ||||
| Accrued compensation | 4,133 | 4,753 | ||||||
| Other current liabilities | 3,896 | 4,409 | ||||||
| Deferred revenue | 4,424 | 5,909 | ||||||
| Total current liabilities | 19,100 | 21,022 | ||||||
| Long-term deferred revenue | 22,303 | 26,393 | ||||||
| Other long-term liabilities | 915 | 1,012 | ||||||
| TOTAL LIABILITIES | 42,318 | 48,427 | ||||||
| STOCKHOLDERS’ EQUITY | 9,657 | 55,340 | ||||||
|
|
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|
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
$ | 51,975 | $ | 103,767 | ||||
| (1) Derived from Immersion’s annual audited consolidated financial statements. | ||||||||
| Immersion Corporation Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) |
||||||||||||||||||
| Three Months | Year | |||||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| Revenues: | ||||||||||||||||||
| Royalty and license | $ | 6,662 | $ | 8,918 | $ | 34,089 | $ | 56,030 | ||||||||||
| Development, services, and other | 234 | 375 | 924 | 1,056 | ||||||||||||||
| Total revenues | 6,896 | 9,293 | 35,013 | 57,086 | ||||||||||||||
| Costs and expenses: | ||||||||||||||||||
| Cost of revenues | 39 | 58 | 197 | 197 | ||||||||||||||
| Sales and marketing | 3,374 | 3,878 | 13,516 | 14,613 | ||||||||||||||
| Research and development | 2,621 | 3,159 | 11,759 | 13,388 | ||||||||||||||
| General and administrative | 11,458 | 13,406 | 53,343 | 44,151 | ||||||||||||||
| Restructuring costs | 1,620 | - | 1,620 | - | ||||||||||||||
| Total costs and expenses | 19,112 | 20,501 | 80,435 | 72,349 | ||||||||||||||
| Operating loss | (12,216 | ) | (11,208 | ) | (45,422 | ) | (15,263 | ) | ||||||||||
| Interest and other income (loss) | 107 | (155 | ) | 611 | 754 | |||||||||||||
| Loss from continuing operations before provision for income taxes | (12,109 | ) | (11,363 | ) | (44,811 | ) | (14,509 | ) | ||||||||||
| Provision for income taxes | (185 | ) | (26,785 | ) | (480 | ) | (25,521 | ) | ||||||||||
| Loss from continuing operations | (12,294 | ) | (38,148 | ) | (45,291 | ) | (40,030 | ) | ||||||||||
| Income from discontinued operations | - | - | - | 649 | ||||||||||||||
| Net loss | $ | (12,294 | ) | $ | (38,148 | ) | $ | (45,291 | ) | $ | (39,381 | ) | ||||||
| Basic net income (loss) per share | ||||||||||||||||||
| Continuing operations | $ | (0.42 | ) | $ | (1.32 | ) | $ | (1.55 | ) | $ | (1.39 | ) | ||||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.02 | ||||||||||
| Total | $ | (0.42 | ) | $ | (1.32 | ) | $ | (1.55 | ) | $ | (1.37 | ) | ||||||
| Shares used in calculating basic net income (loss) per share | 29,250 | 28,860 | 29,179 | 28,759 | ||||||||||||||
| Diluted net income (loss) per share | ||||||||||||||||||
| Continuing operations | $ | (0.42 | ) | $ | (1.32 | ) | $ | (1.55 | ) | $ | (1.39 | ) | ||||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.02 | ||||||||||
| Total | $ | (0.42 | ) | $ | (1.32 | ) | $ | (1.55 | ) | $ | (1.37 | ) | ||||||
| Shares used in calculating diluted net income (loss) per share | 29,250 | 28,860 | 29,179 | 28,759 | ||||||||||||||
| Immersion Corporation | ||||||||||||||||||
| Reconciliation of GAAP Net Loss to Non-GAAP Net Loss | ||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months | Year | |||||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| GAAP net loss | $ | (12,294 | ) | $ | (38,148 | ) | $ | (45,291 | ) | $ | (39,381 | ) | ||||||
| Add: Stock-based compensation | 2,028 | 1,308 | 6,102 | 6,111 | ||||||||||||||
| Add: Restructure costs | 1,620 | - | 1,620 | - | ||||||||||||||
| Add: Provision for income taxes | 185 | 26,785 | 480 | 25,521 | ||||||||||||||
| Less: Non-GAAP benefit for income taxes on continuing operations (at 19%) | 2,301 | 2,159 | 8,514 | 2,757 | ||||||||||||||
| Non-GAAP net loss | $ | (6,160 | ) | $ | (7,896 | ) | $ | (28,575 | ) | $ | (4,992 | ) | ||||||
|
Non-GAAP net loss per share |
$ | (0.21 | ) | $ | (0.27 | ) | $ | (0.98 | ) | $ | (0.17 | ) | ||||||
|
Shares used in calculating Non-GAAP net loss per share |
29,250 | 28,860 | 29,179 | 28,759 | ||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20180222006467/en/
Source:
Investor Contact:
The Blueshirt Group
Jennifer Jarman,
+1 415-217-5866
jennifer@blueshirtgroup.com