Immersion Corporation Reports Record Fourth Quarter Net Revenues of $5.2 Million, an Increase of 75% Over Q4 1999
Total revenues for the year ended December 31, 2000 increased to $15.3 million from $10.9 million for the year ended December 31, 1999, an increase of 39%. Revenue for the year ended December 31, 2000 was comprised of $8.2 million in product sales, which was $2.1 million or 35% higher than the product sales for the year ended December 31, 1999; $3.9 million in development contract revenue, which was $1.2 million or 46% higher than the development contract revenue for the year ended December 31, 1999; and $3.2 million in royalty revenue, which was $1.0 million or 44% higher than the royalty revenue for the year ended December 31, 1999. Pro forma net loss, excluding amortization of intangibles and deferred stock compensation and acquisition related charges, was $13.6 million for the year ended December 31, 2000 or $0.77 per diluted share compared to $6.9 million for the year ended December 31, 1999 or $0.88 per diluted share.
"We're very pleased with our fourth quarter financial results and the progress we made during the quarter in our various business groups," said Victor Viegas, CFO at Immersion. "We're encouraged by the success of Logitech's iFeel products, which incorporate our TouchSense(TM) technology and the interest it has created, as well as the recent addition of Kensington, our third mouse provider partner. Our fourth quarter was important to us for a number of other reasons, including: the addition of Bob O'Malley as President and CEO; the incorporation of our technology in the highly anticipated computer game, Black and White, from Electronic Arts; the addition of our third automotive development relationship; BMW's first public showing of their iDrive controller at the Convergence Autoshow, a TouchSense(TM) enabled interface that is expected to be standard equipment in BMW's upcoming 7 Series automobile; and finally the release of three new 3-D products."
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 95 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. Forward-looking statements include the statement that BMW is expected to include touch-enabled controls as standard equipment in its upcoming 7 Series automobile. The company's actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with the company's business which include, but are not limited to, the ability of Immersion to integrate its touch interaction technology into BMW's automobiles and the success of BMW's automobiles incorporating Immersion's touch interaction technology.
Risks and uncertainties related to Immersion's business are further outlined in Immersion's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its registration statement on Form S-3 filed Jan. 3, 2001. 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, February 12, 2001, at 5:00 p.m. EST. Immersion is scheduled to discuss operating results for the fourth quarter ended December 31, 2000 and the 2001 outlook. A question and answer session will follow. To listen to the call, dial 212/346-6392, reservation number 16836327. 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 16, 2001, by dialing 800/633-8284, reservation number 16836327.
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 Twelve Months
Ended December 31, Ended December 31,
2000 1999 2000 1999
Revenues:
Royalty revenue $ 1,028 $ 946 $ 3,186 $ 2,211
Product sales 3,005 1,584 8,176 6,063
Development
contracts and
other 1,179 447 3,901 2,668
-- -- -- --
Total revenues 5,212 2,977 15,263 10,942
-- -- -- --
Costs and expenses:
Cost of product
sales 1,689 836 4,496 2,964
Sales and marketing 3,287 1,308 10,990 3,547
Research and
development 2,284 1,576 7,250 5,518
General and
administrative 1,974 1,227 7,855 5,250
Amortization of
intangibles and
deferred stock
compensation 1,593 509 5,053 1,385
Acquisition related
charges 11 -- 3,481 1,190
-- -- -- --
Total costs
and expenses 10,838 5,456 39,125 19,854
-- -- -- --
Operating loss (5,626) (2,479) (23,862) (8,912)
Interest and other
income/(expense),
net 242 184 1,690 (558)
--- -- --- ---
Net loss $ (5,384) $ (2,295) $ (22,172) $ (9,470)
======= ======= ======= =======
Basic and diluted net
loss per share $ (0.29) $ (0.19) $ (1.25) $ (1.21)
-- -- -- --
Shares used in
calculating basic
and diluted net
loss per share 18,331 11,915 17,719 7,852
-- -- -- --
Immersion Corporation
Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
2000 1999 (1)
(Unaudited)
ASSETS
Cash and cash equivalents $ 23,474 $ 46,606
Short-term investments 2,360 4,781
Accounts receivable, net 3,675 1,362
Inventories 1,709 949
Prepaids and other current assets 1,306 1,160
-- --
Total current assets 32,524 54,858
Property and equipment, net 3,606 1,316
Purchased intangibles and other
assets, net 14,864 4,813
Other investments 6,500 --
-- --
TOTAL ASSETS $ 57,494 $ 60,987
====== ======
LIABILITIES
Accounts payable $ 1,720 $ 1,372
Accrued compensation 1,042 478
Other accrued liabilities 1,145 505
Deferred revenue and customer
advances 932 1,736
Current portion of long-term debt 120 110
-- --
Total current liabilities 4,959 4,201
Long-term debt 4,192 3,784
Other long-term liabilities 0 39
-- --
Total liabilities 9,151 8,024
STOCKHOLDERS' EQUITY 48,343 52,963
-- --
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 57,494 $ 60,987
====== ======
(1) Derived from the Company's audited consolidated financial
statements filed on Form 8-K dated January 3, 2001.