Immersion Corporation Reports Record Second Quarter Net Revenues of $4.2 Million, an Increase of 43% Over Q2 2000
Total revenues for the six months ended June 30, 2001 increased to $9.6 million from $6.2 million for the six months ended June 30, 2000, an increase of 54%. Revenue for the six months ended June 30, 2001 was comprised of $5.7 million in product sales, which was $2.7 million or 90% higher than the product sales for the six months ended June 30, 2000; royalty revenue for the six months ended June 30, 2001 was $2.1 million, which was $272,000 or 15% higher than the royalty revenue for the six months ended June 30, 2000 and development contract revenue for the six months ended June 30, 2001 was $1.7 million, which was $357,000 or 26% higher than the development contract revenue for the six months ended June 30, 2000. The pro forma net loss, excluding amortization of intangibles and deferred stock compensation and acquisition related and other charges, for the six months ended June 30, 2001 was $7.0 million compared to a net loss of $5.7 million for the six months ended June 30, 2000. Pro forma net loss per share, for the six months ended June 30, 2001 was $0.38, compared to pro forma basic and diluted net loss per share of $0.33 for the six months ended June 30, 2000.
"We're very pleased with our second quarter financial results and
the progress we made during the quarter in our various business
groups," said Bob O'Malley, Chairman and CEO at Immersion. "I'm
pleased with the Company's revenue increase of 43% in spite of the
difficult economic conditions in the marketplace, as well as our
ability to continue to manage our costs down as we move closer to
profitability. Our second quarter was important to us for a number of
reasons including, the announcement of plans to produce TouchSense
enabled mice by multiple mouse manufacturers, including Saitek and
RCA, the product launch and success of Logitech's GT Force product,
the first full-featured TouchSense gaming device for the Playstation
II platform and the launch of Immersion Medical's new Endoscopy
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, July 30, 2001, at 5:00 p.m. EDT. Immersion is scheduled to discuss operating results for the second quarter ended June 30, 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 16836331. 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 August 3, 2001, by dialing (800) 633-8284, reservation number 16836331.
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 Six Months Ended June 30, Ended June 30, 2001 2000 2001 2000 Revenues: Royalty revenue $ 633 $ 975 $ 2,122 $ 1,850 Product sales 2,739 1,275 5,746 3,026 Development contracts and other 864 710 1,729 1,372 Total revenues 4,236 2,960 9,597 6,248 Costs and expenses: Cost of product sales 1,596 821 3,380 1,657 Sales and marketing 2,568 2,910 5,626 4,798 Research and development 2,076 1,685 4,129 3,095 General and administrative 1,741 1,730 3,801 3,446 Amortization of intangibles and deferred stock compensation 1,400 1,161 2,652 1,870 Acquisition related and other charges 100 -- 125 887 Total costs and expenses 9,481 8,307 19,713 15,753 Operating loss (5,245) (5,347) (10,116) (9,505) Interest and other income, net 165 481 376 1,067 Net loss $ (5,080) $ (4,866) $ (9,740) $ (8,438) Basic and diluted net loss per share $ (0.27) $ (0.28) $ (0.53) $ (0.49) Shares used in calculating basic and diluted net loss per share 18,611 17,533 18,530 17,283 Immersion Corporation Condensed Consolidated Balance Sheets (In thousands) June December 30, 31, 2001 2000(1) (Unaudited)(Audited) ASSETS Cash and cash equivalents $17,772 $23,474 Short-term investments -- 2,360 Accounts receivable, net 4,367 3,675 Inventories 1,891 1,709 Prepaid expenses and other current assets 839 1,306 Total current assets 24,869 32,524 Property and equipment, net 3,465 3,606 Purchased intangibles and other assets, net 13,208 14,864 Other investments 6,500 6,500 TOTAL ASSETS $48,042 $57,494 LIABILITIES Accounts payable $ 1,049 $ 1,720 Accrued compensation 1,017 1,042 Other accrued liabilities 912 1,145 Deferred revenue and customer advances 925 932 Current portion of long-term debt 126 120 Total current liabilities 4,029 4,959 Long-term debt 4,368 4,192 Total liabilities 8,397 9,151 STOCKHOLDERS'TM EQUITY 39,645 48,343 TOTAL LIABILITIES & STOCKHOLDERS'TM EQUITY $48,042 $57,494 (1) Derived from the Company'TMs annual audited financial statements.