Immersion Corporation Reports Record Net Revenues of $2.5 Million for First Quarter
"We're very pleased with our first quarter results," said Victor Viegas, CFO at Immersion. "All three revenue groups showed solid growth, in particular, the royalty revenue increased significantly. In addition, we are making great progress with our Accessibility market initiatives and with our patent filing efforts. Our first quarter was important to us for a number of reasons including, the completion of the Company's acquisition of Haptech, the signing of a Middleware partnership agreement with Sony, the announcement of a new hand-held gamepad product by Kensington/Gravis and the expanded partnership with Logitech (NASDAQ:LOGIY) related to TouchSense(TM) mouse products."
About Immersion Corporation (www.immersion.com)
Founded in 1993, Immersion Corporation develops advanced hardware and software technologies that enable users to interact with computers using their sense of touch. Immersion's patented TouchSense(TM) technologies, enable computer peripheral devices to deliver tactile sensations that correspond to on-screen events. Immersion licenses its hardware and software technology, on which it holds 50 issued patents worldwide, to industry-leaders in order to integrate and implement its sensory feedback into professional simulation and modeling, consumer devices, and enabling technologies.
All statements contained herein, as well as oral statements that may be made by Immersion or by officers, directors or employees of Immersion acting on Immersion's behalf, that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Immersion to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in Immersion's 1999 Annual Report as filed on Form 10K and its Prospectus dated November 12, 1999 included in its Registration Statement on Form S-1 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. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Note to Editors: Additional background information on Immersion Corporation is available through our Web Site at www.immersion.com. -0-
Immersion Corporation Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2000 1999 Revenues: Royalty Revenue $ 884 $ 481 Product sales 1,220 1,085 Development contracts and other 358 310 Total revenues 2,462 1,876 Costs and expenses: Cost of product sales 623 494 Sales and marketing 1,528 187 Research and development 676 458 General and administrative 1,400 752 Amortization of intangibles and deferred stock compensation 672 118 In-process research and development 887 1,190 Total costs and expenses 5,786 3,199 Loss from operations (3,324) (1,323) Other income 760 40 Net loss $(2,564) $ (1,283) Basic and diluted net loss per share $ (0.16) $ (0.29) Shares used in calculating basic and diluted Net loss per share 15,766 4,459 Immersion Corporation Condensed Consolidated Balance Sheets (In thousands) March 31, December 31, 2000 1999 (Unaudited) (Audited) ASSETS Cash and cash equivalents $28,714 $46,527 Short-term investments 20,212 4,781 Accounts receivable, net 1,271 1,064 Inventories 683 660 Prepaid expenses and other assets 1,447 1,057 Total current assets 52,327 54,089 Property and equipment, net 899 591 Patents and technology, net 4,620 4,687 Purchased intangibles 5,330 -- Other assets -- 71 TOTAL ASSETS $63,176 $59,438 LIABILITIES Accounts payable $ 960 $ 750 Accrued compensation 503 180 Other accrued liabilities 1,089 503 Deferred revenue 729 1,316 Customer advances 39 39 Income taxes payable 2 2 Total current liabilities 3,322 2,790 STOCKHOLDERS' EQUITY 59,854 56,648 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $63,176 $59,438 *T CONTACT: Immersion Corporation Victor Viegas/Kimberly Firehammer, 408/467-1900 Invest@immersion.com