Immersion Corporation Reports Record Net Revenues of $3.8 Million for Third Quarter
Total revenues for the nine months ended September 30, 2000 increased to $10.1 million from $8.0 million for the nine months ended September 30, 1999, an increase of 26%. Revenue for the nine months ended September 30, 2000 was comprised of $5.2 million in product sales, which was $700,000 or 16% higher than the product sales for the nine months ended September 30, 1999; $2.7 million in development contract revenue, which was $493,000 or 22% higher than the development contract revenue for the nine months ended September 30, 1999; and $2.2 million in royalty revenue, which was $893,000 or 71% higher than the royalty revenue for the nine months ended September 30, 1999. Pro forma net loss, excluding amortization of intangibles and deferred stock compensation and acquisition related charges, was $9.9 million for the nine months ended September 30, 2000 or $0.56 per diluted share compared to $5.1 million for the nine months ended September 30, 1999 or $0.78 per diluted share.
"We're very pleased with our third quarter financial results and the progress we made during the quarter in our various business groups," said Victor Viegas, CFO at Immersion. "The purchase of VTi and HT Medical during the quarter, enhances our patent portfolio, increases our presence in two new markets and most importantly, adds valuable human resources experienced in the field of haptics. Our third quarter was important to us for a number of other reasons including, the addition of our new CEO and President, Bob O'Malley, the introduction of two new tactile mice products from Logitech and the multitude of announcements by various licensees of new gaming devices available for this holiday season, including products for the PlayStation 2 platform."
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 and its wholly owned subsidiaries hold over 80 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. 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.
Additional risks and uncertainties are outlined in Immersion's reports on Forms 10-K and 10Q and its proxy statement/prospectus dated September 13, 2000, 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.
Immersion Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2000 1999 2000 1999
--- ---
Revenues:
Royalty revenue $ 308 $ 649 $ 2,158 $ 1,265
Product sales 2,153 1,342 5,179 4,479
Development contracts
and other 1,343 720 2,715 2,222
--- ---
Total revenues 3,804 2,711 10,052 7,966
--- ---
Costs and expenses:
Cost of product sales 1,165 682 2,822 2,128
Sales and marketing 2,914 988 7,713 2,239
Research and
development 1,876 1,388 4,974 3,943
General and
administrative 2,408 1,973 5,852 4,023
Amortization of
intangibles and deferred
stock compensation 1,590 444 3,460 876
Acquisition related
charges 2,583 -- 3,469 1,190
--- ---
Total costs and
expenses 12,536 5,475 28,290 14,399
--- ---
Operating loss (8,732) (2,764) (18,238) (6,433)
Interest and other
income/(expense), net 383 (142) 1,451 (715)
--- ---
Net loss $(8,349) $(2,906) $(16,787) $ (7,148)
======= ======= ======== ========
Basic and diluted
net loss per share $ (0.46) $ (0.41) $ (0.96) $ (1.10)
--- ---
Shares used in
calculating basic and
diluted net loss
per share 17,955 7,085 17,509 6,478
--- ---
Immersion Corporation
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
2000 1999 (1)
(Unaudited)
---
ASSETS
Cash and cash equivalents $ 24,899 $ 46,606
Short-term investments 8,002 4,781
Accounts receivable, net 2,457 1,362
Inventories 1,475 949
Prepaids and other current assets 1,320 1,160
-- --
Total current assets 38,153 54,858
Property and equipment, net 3,627 1,316
Purchased intangibles
and other assets, net 15,328 4,813
Other investments 6,500 --
-- --
TOTAL ASSETS $ 63,608 $ 60,987
========== ==========
LIABILITIES
Accounts payable $ 2,436 $ 1,372
Accrued compensation 594 478
Other accrued liabilities 2,400 505
Deferred revenue and
customer advances 911 1,736
Current portion of long-term debt 115 110
-- --
Total current liabilities 6,456 4,201
Long-term debt 3,928 3,682
Other long-term liabilities 0 39
-- --
Total liabilities 10,384 7,922
STOCKHOLDERS' EQUITY 53,224 53,065
-- --
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 63,608 $ 60,987
========== ==========
(1) Derived from the Company's annual audited financial statements and
restated to include Company's subsidiary, HT Medical.