Immersion Corporation Reports Fourth Quarter Results
The pro forma net loss, which is the net loss excluding amortization of intangibles and deferred stock compensation and acquisition related and other charges, was $1.7 million for the fourth quarter of 2001 or $0.09 per share compared to $3.8 million for the fourth quarter of 2000 or $0.21 per share. Net loss was $3.0 million for the fourth quarter of 2001 or $0.16 per share compared to $5.4 million for the fourth quarter of 2000 or $0.29 per share.
Total revenues for the year ended December 31, 2001 increased to $19.2 million from $15.3 million for the year ended December 31, 2000, an increase of 26%. Revenue breakouts for the current year, and versus the prior year, included product revenues of $10.4 million, an increase of 27%; $5.4 million in royalty revenues, an increase of 68%; and $3.5 million in development contract revenues, a decline of 10%.
The pro forma net loss, which is the net loss excluding amortization of intangibles and deferred stock compensation and acquisition related and other charges, was $16.3 million for the year ended December 31, 2001 or $0.87 per share compared to $13.6 million for the year ended December 31, 2000 or $0.77 per share.
"This past year, we squeezed over $1 million from our cost structure while we continued to gain market acceptance for new applications of our patented technology as evidenced by revenue growth of 26% across our various business segments: gaming/entertainment; personal computing; industrial/automotive; and medical," said Bob O'Malley, Chairman and CEO of Immersion. "In addition, we have continued to enhance our organization with the promotion of Victor Viegas to President and chief operating officer as announced today and the addition of two new outstanding board members, John Hodgman and Jack Saltich, that we announced in late January."
"The Company's cash consumption during the quarter dropped to under $500,000, royalty revenues grew 92% compared to the fourth quarter of last year and our gross margin improved to over 75% as we continued to manage our costs down and move closer to profitability," said Vic Viegas, President, COO and CFO. "In addition, today we filed a patent infringement lawsuit against Microsoft Corporation, Sony Computer Entertainment Inc. and Sony Computer Entertainment of America, Inc. for use of touch feedback technology on the Microsoft Xbox(TM) and Sony PlayStation® and PlayStation®2 video game systems."
About Immersion Corporation (www.immersion.com)
Founded in 1993, Immersion Corp. is a recognized leader in developing, licensing and marketing haptic technology and products. Bringing value to markets where user/product interaction needs to be made more compelling, safer or productive, Immersion helps its partners develop and increase competitive advantage and broaden market reach by making the use of touch sense feedback as critical a user experience as sight and sound. Immersion's technology is deployed across personal computing, entertainment, medical training, automotive and three-dimensional simulation markets. Immersion and its wholly owned subsidiaries hold over 150 issued patents worldwide.
Immersion will host a conference call with live Internet broadcast on Monday, February 11, 2002, at 5:00 p.m. EST. Immersion is scheduled to discuss operating results for the fourth quarter ended December 31, 2001, as well as the first quarter 2002 and the full year 2002 outlook. A question and answer session will follow. To listen to the call, dial (888) 391-0104, reservation number 19956362. To listen to the webcast, log on to the Internet at http://www.immersion.com. The call will be archived and available for replay until February 15, 2002, by dialing (800) 633-8284, reservation number 19956362.
Note to Editors: Additional background information on Immersion Corporation is available through our Web Site at http://www.immersion.com.
Statements made in this press release other than statements of historical fact are forward-looking statements, including those that reflect management's current forecast of certain aspects of Immersion's future. Forward-looking statements made in this press release are based on current information, which we have assessed but which by its nature is dynamic and subject to rapid and even abrupt changes. 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. Forward-looking statements include statements regarding anticipated profitability or anticipated improved financial results. 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, fluctuations in demand for touch-enabled products, potential increase in expenses and ability to retain key personnel.
Risks and uncertainties related to Immersion's business are further outlined in Immersion's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. These reports are filed with the Securities and Exchange Commission. These factors may not constitute all factors that could cause actual results to differ materially from those discussed in any forward-looking statement. Immersion does not undertake a duty to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Brand and product's names mentioned in this press release are trademarks or registered trademarks of their respective companies or organizations.
Immersion Corporation Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Year Ended December 31, Ended December 31, 2001 2000 2001 2000 Revenues: Royalty revenue $ 1,976 $ 1,028 $ 5,362 $ 3,186 Product sales 2,287 3,005 10,360 8,176 Development contracts and other 900 1,178 3,510 3,901 --- --- --- --- Total revenues 5,163 5,211 19,232 15,263 --- --- --- --- Costs and expenses: Cost of product sales 1,272 1,689 6,074 4,496 Sales and marketing 1,939 3,287 9,868 10,990 Research and development 1,628 2,284 7,548 7,250 General and administrative 1,777 1,974 7,694 7,855 Amortization of intangibles and deferred stock compensation 1,299 1,593 5,252 5,053 Acquisition related and other charges 0 12 224 3,481 --- --- --- --- Total costs and expenses 7,915 10,839 36,660 39,125 Operating loss (2,752) (5,628) (17,428) (23,862) Interest and other income (expense), net (215) 243 (4,318) 1,690 Net loss $ (2,967) $ (5,385) $(21,746) $(22,172) ======== ======== ======== ======== Basic and diluted net loss per share $ (0.16) $ (0.29) $ (1.16) $ (1.25) Shares used in calculating basic and diluted net loss per share 18,951 18,331 18,702 17,719 Immersion Corporation Condensed Consolidated Balance Sheets (In thousands) December 31, December 31, 2001 2000 (1) (Unaudited) ASSETS Cash and cash equivalents $10,381 $23,474 Short-term investments 2,545 2,360 Accounts receivable, net 3,779 3,675 Inventories 1,965 1,709 Prepaid expenses and other current assets 1,179 1,306 --- --- Total current assets 19,849 32,524 Property and equipment, net 2,918 3,606 Purchased intangibles and other assets, net 12,058 14,864 Other investments 2,200 6,500 --- --- TOTAL ASSETS $37,025 $57,494 ======= ======= LIABILITIES Accounts payable $ 722 $ 1,720 Accrued compensation 1,158 1,042 Other accrued liabilities 587 1,145 Deferred revenue and customer advances 953 932 Current portion of long-term debt 4,113 120 --- --- Total current liabilities 7,533 4,959 Long-term debt 678 4,192 --- --- Total liabilities 8,211 9,151 STOCKHOLDERS' EQUITY 28,814 48,343 --- --- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $37,025 $57,494 ======= ======= (1) Derived from the Company's annual audited financial statements.