Immersion Corporation Reports Record Net Revenues of $2.6 Million for Second Quarter
Total revenues for the six months ended June 30, 2000 increased to $5.0 million from $3.5 million for the six months ended June 30, 1999, an increase of 43%. Revenue for the six months ended June 30, 2000 was comprised of $1.9 million in royalty revenue, which was $1.2 million or 200% higher than the royalty revenue for the six months ended June 30, 1999; product sales for the six months ended June 30, 2000 was $2.3 million, which was $134,000 or 6% higher than the product sales for the six months ended June 30, 1999 and development contract revenue for the six months ended June 30, 2000 was $883,000, which was $135,000 or 18% higher than the development contract revenue for the six months ended June 30, 1999. Net loss, for the six months ended June 30, 2000 was $5.6 million compared to a net loss of $2.1 million for the six months ended June 30, 1999. Basic and diluted net loss per share, for the six months ended June 30, 2000 was $0.35, compared to basic and diluted net loss per share of $0.43 for the six months ended June 30, 1999.
"We're very pleased with our second quarter financial results and the progress we made during the quarter in our various business groups," said Victor Viegas, CFO at Immersion. "The increase in the Company's royalty revenue helped drive gross margins to 78% during the quarter. Our second quarter was important to us for a number of reasons including, our move to new facilities, the signing of merger agreements with Virtual Technologies, Inc and HT Medical Systems, Inc., the addition of BMW as a licensee and the development of new lower priced peripheral devices which are expected to ship by this holiday season."
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 58 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.
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 statements regarding new lower priced, royalty-bearing peripheral devices that we expect our licensees to ship this holiday season. 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, the ability of our licensees to manufacture and ship sufficient quantities of such lower priced, royalty-bearing peripheral devices in time for this holiday season, and the degree of consumer demand for such lower priced, royalty-bearing peripheral devices.
Additional risks and uncertainties are outlined in Immersion's reports on Forms 10-K and 10Q, as 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 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 Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
Revenues:
Royalty revenue $ 982 $ 141 $ 1,866 $ 622
Product sales 1,047 1,048 2,267 2,133
Development
contracts and other 525 438 883 748
Total revenues 2,554 1,627 5,016 3,503
Costs and expenses:
Cost of product sales 570 476 1,193 970
Sales and marketing 2,363 272 3,891 459
Research and development 868 599 1,544 1,057
General and administrative 1,386 796 2,786 1,548
Amortization of intangibles
and deferred stock
compensation 1,121 345 1,793 463
In-process research
and development -- -- 887 1,190
Total costs
and expenses 6,308 2,488 12,094 5,687
Operating loss (3,754) (861) (7,078) (2,184)
Interest and other
income, net 691 26 1,451 66
Net loss $ (3,063) $ (835) $ (5,627) $ (2,118)
======== ======== ======== ========
Basic and diluted net
loss per share $ (0.19) $ (0.15) $ (0.35) $ (0.43)
Shares used in
calculating
basic and diluted
net loss per share 16,247 5,423 16,006 4,944
Immersion Corporation
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2000 1999 (1)
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $22,839 $46,527
Short-term investments 14,886 4,781
Accounts receivable, net 1,716 1,064
Inventories 855 660
Prepaid expenses and
other current assets 2,401 1,057
--- ---
Total current assets 42,697 54,089
Property and equipment, net 2,435 591
Purchased intangibles
and other assets, net 9,596 4,758
Other investments 6,500 --
--- ---
TOTAL ASSETS $61,228 $59,438
======= =======
LIABILITIES
Accounts payable $ 1,265 $ 750
Accrued compensation 649 180
Other accrued liabilities 1,320 503
Deferred revenue and customer advances 372 1,355
Income taxes payable 2 2
--- ---
Total current liabilities 3,608 2,790
STOCKHOLDERS' EQUITY 57,620 56,648
--- ---
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $61,228 $59,438
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(1) Derived from the Company's annual audited financial statements.
*T
CONTACT: Immersion Corporation
Victor Viegas/Kimberly Firehammer, 408/467-1900
Invest@immersion.com