Immersion Corporation Reports Record First Quarter Net Revenues of $5.4 Million, an Increase of 63% Over Q1 2000
"We're very pleased with our first quarter financial results and the progress we made during the quarter in our various business groups," said Victor Viegas, CFO of Immersion. "First and foremost, we're pleased to have reached a favorable settlement of our patent infringement lawsuit against InterAct Accessories over its use of our intellectual property in tactile-vibration gaming peripherals. As a result of the settlement, Immersion has achieved a royalty bearing license arrangement with InterAct covering their shipment of these products for use with multiple gaming platforms, including the Sony PlayStation® 2 and the upcoming Microsoft Xbox(TM). In addition, during the first quarter we extended our licensee base in the mouse/trackball market with the previously announced licensing of Saitek and Kensington. Finally, we take pride in reaching a milestone here at Immersion with the granting of our 100th patent."
About Immersion Corporation (www.immersion.com)
Founded in 1993, Immersion Corp. develops and licenses advanced hardware and software technologies that let people use their sense of touch to better interact with the digital world around them. Immersion's haptic technology can be applied to virtually every digital experience including personal computing, entertainment, medical training, automotive interfaces, and three-dimensional simulation. Immersion's patented TouchSense(TM) technologies can dramatically improve computer users' performance and productivity by unlocking their sense of touch and allowing them to feel what they see and do on the computer screen. Immersion and its wholly owned subsidiaries hold over 100 issued patents worldwide.
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.
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 and the registration statement 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.
Immersion will host a conference call with live Internet broadcast on Monday, April 30, 2001, at 5:00 p.m. EDT. Immersion is scheduled to discuss operating results for the first quarter ended March 31, 2001 and the full year 2001 outlook. A question and answer session will follow. To listen to the call, dial 212/346-6392, reservation number 16836330. 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 May 4, 2001, by dialing 800/633-8284, reservation number 16836330.
Note to Editors: Additional background information on Immersion Corporation is available through our Web Site at http://www.immersion.com.
Immersion Corporation Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2001 2000 Revenues: Royalty revenue $ 1,489 $ 875 Product sales 3,007 1,751 Development contracts and other 865 662 Total revenues 5,361 3,288 Costs and expenses: Cost of product sales 1,784 836 Sales and marketing 3,058 1,888 Research and development 2,053 1,410 General and administrative 2,060 1,716 Amortization of intangibles and deferred stock compensation 1,252 709 Acquisition related charges 25 887 Total costs and expenses 10,232 7,446 Operating loss (4,871) (4,158) Interest and other income, net 211 586 Net loss $ (4,660) $ (3,572) ======== ======== Basic and diluted net loss per share $ (0.25) $ (0.21) Shares used in calculating basic and diluted net loss per share 18,448 17,034 Immersion Corporation Condensed Consolidated Balance Sheets (In thousands) March 31, December 31, 2001 2000(1) (Unaudited) ASSETS Cash and cash equivalents $20,041 $23,474 Short-term investments 1,000 2,360 Accounts receivable, net 4,367 3,675 Inventories 1,766 1,709 Prepaids and other current assets 1,129 1,306 --- --- Total current assets 28,303 32,524 Property and equipment, net 3,553 3,606 Purchased intangibles and other assets, net 14,066 14,864 Other investments 6,500 6,500 --- --- TOTAL ASSETS $52,422 $57,494 ======= ======= LIABILITIES Accounts payable $ 1,214 $ 1,720 Accrued compensation 910 1,042 Other accrued liabilities 1,022 1,145 Deferred revenue and customer advances 558 932 Current portion of long-term debt 123 120 --- --- Total current liabilities 3,827 4,959 Long-term debt 4,338 4,192 --- --- Total liabilities 8,165 9,151 STOCKHOLDERS' EQUITY 44,257 48,343 --- --- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $52,422 $57,494 ======= ======= (1) Derived from the Company's annual audited financial statements.