Immersion Corporation Reports Second Quarter 2011 Results
Total revenues for the second quarter of 2011 were
Net loss for the second quarter of 2011 was
"While we expected the second quarter to be seasonally weaker than the
immediately preceding quarter, revenues were softer than anticipated due
to specific customer issues in the medical segment, as well as
disruption in the automotive market as a result of the earthquake in
Japan," said Immersion CEO
Revenues for the six months ended
"Based on our current outlook and our financial performance for the
first half of the year, we are reiterating our expectations for fiscal
2011 revenues to be in the range of
As of
Corporate Highlights
Immersion recently:
-
Saw the release of a number of new mobile devices featuring Immersion
technology, including the Toshiba Thrive 10" tablet and new handset
models including the LG Optimus 2, Optimus 3D and
Optimus Black ; the Nokia N9 and Samsung's Galaxy S2. -
Secured new agreements with licensees of its technology for
implementation into a wide variety of markets and applications.
Licensees include GoodBetterBest in the gaming peripherals market,
National Research Council of Canada (NRC) in the medical simulation market and Valeo in the automotive market. - Announced the first applications designed by numerous third party developers that incorporate haptic effects by using Immersion's MOTIV™ SDK and are currently available on the Android Market.
- Marked a patent milestone with over 600 patents issued in its world-wide portfolio of over 1200 granted and pending patents. The growth of the patent portfolio builds upon nearly 20 years of innovation in the field of haptics, allowing Immersion to offer its customers compelling haptic experiences that are relevant to today's GUI-driven touchscreen interfaces.
Conference Call Information
Immersion will host a conference call with company management on
About Immersion (www.immersion.com)
Founded in 1993,
Use of Non-GAAP Financial Measures
Immersion reports all financial information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult to understand if limited to reviewing only GAAP financial measure. Immersion discloses this non-GAAP information because it is useful in understanding the company's performance as it excludes non-cash and other special charges that many investors feel may obscure the company's true operating performance. Likewise, management uses these non-GAAP financial measures to manage and assess the profitability of its business. Investors are encouraged to review the related GAAP financial measures.
Forward-looking Statements
This press release contains "forward-looking statements" that involve
risks and uncertainties as well as assumptions that, if they never
materialize or prove incorrect, could cause the results of
All statements, other than the statements of historical fact, are
statements that may be deemed forward-looking statements, including, but
not limited to, the statements regarding our expectations for fiscal
2011 revenues to be in the range of
For a more detailed discussion of these factors, and other factors that
could cause actual results to vary materially, interested parties should
review the risk factors listed in Immersion's Annual Report on Form 10-K
for 2010 and its most recent Quarterly Report on Form 10-Q, which are on
file with the
Immersion, the Immersion logo, MOTIV and TouchSense are trademarks of
The use of the word "partner" or "partnership" in this press release does not mean a legal partner or legal partnership.
(IMMR — C)
Immersion Corporation | |||||||
Condensed Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
June 30 | December 31, | ||||||
2011 | 2010 | ||||||
(Unaudited) | (1) | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 15,899 | $ | 12,243 | |||
Short-term investments | 48,971 | 48,961 | |||||
Accounts and other receivables, net | 1,299 | 815 | |||||
Inventories | 448 | 406 | |||||
Deferred income taxes | 342 | 342 | |||||
Prepaid expenses and other current assets | 617 | 3,821 | |||||
Total current assets | 67,576 | 66,588 | |||||
Property and equipment, net | 1,466 | 1,931 | |||||
Intangibles and other assets, net | 13,199 | 12,356 | |||||
TOTAL ASSETS | $ | 82,241 | $ | 80,875 | |||
LIABILITIES | |||||||
Accounts payable | $ | 764 | $ | 393 | |||
Accrued compensation | 2,374 | 3,507 | |||||
Other current liabilities | 968 | 1,488 | |||||
Deferred revenue and customer advances | 5,057 | 4,429 | |||||
Total current liabilities | 9,163 | 9,817 | |||||
Long-term deferred revenue | 14,795 | 16,494 | |||||
Deferred income tax liabilities | 342 | 342 | |||||
Other long-term liabilities | 478 | 538 | |||||
TOTAL LIABILITIES | 24,778 | 27,191 | |||||
STOCKHOLDERS' EQUITY | 57,463 | 53,684 | |||||
TOTAL LIABILITIES & | |||||||
STOCKHOLDERS' EQUITY | $ | 82,241 | $ | 80,875 | |||
(1) Derived from Immersion's annual audited consolidated financial statements. |
Immersion Corporation | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: | ||||||||||||||||
Royalty and license | $ | 5,882 | $ | 6,304 | $ | 14,235 | $ | 12,707 | ||||||||
Product sales | 546 | 1,850 | 1,547 | 4,818 | ||||||||||||
Development contracts and other | 254 | 321 | 668 | 659 | ||||||||||||
Total revenues | 6,682 | 8,475 | 16,450 | 18,184 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue | 247 | 761 | 721 | 2,130 | ||||||||||||
Sales and marketing | 1,909 | 1,911 | 3,759 | 4,264 | ||||||||||||
Research and development | 2,243 | 2,005 | 4,342 | 4,466 | ||||||||||||
General and administrative | 3,061 | 3,084 | 6,172 | 8,800 | ||||||||||||
Amortization and impairment of intangibles | 335 | 204 | 692 | 439 | ||||||||||||
Total costs and expenses | 7,795 | 7,965 | 15,686 | 20,099 | ||||||||||||
Operating Income (loss) | (1,113 | ) | 510 | 764 | (1,915 | ) | ||||||||||
Interest and other income | 52 | 63 | 114 | 142 | ||||||||||||
Income (loss) from continuing operations before provision for income taxes | (1,061 | ) | 573 | 878 | (1,773 | ) | ||||||||||
Provision for income taxes | (267 | ) | (423 | ) | (861 | ) | (762 | ) | ||||||||
Income (loss) from continuing operations | (1,328 | ) | 150 | 17 | (2,535 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||
Gain on sales of discontinued operations | 18 | 30 | 61 | 61 | ||||||||||||
Net Income (loss) | $ | (1,310 | ) | $ | 180 | $ | 78 | $ | (2,474 | ) | ||||||
Basic net income (loss) per share | ||||||||||||||||
Continuing operations | $ | (0.05 | ) | $ | 0.01 | $ | 0.00 | $ | (0.09 | ) | ||||||
Discontinued operations | - | - | - | - | ||||||||||||
Total | $ | (0.05 | ) | $ | 0.01 | $ | 0.00 | $ | (0.09 | ) | ||||||
Shares used in calculating basic net income (loss) per share | 28,610 | 28,101 | 28,431 | 28,093 | ||||||||||||
Diluted net income (loss) per share | ||||||||||||||||
Continuing operations | $ | (0.05 | ) | $ | 0.01 | $ | 0.00 | $ | (0.09 | ) | ||||||
Discontinued operations | - | - | - | - | ||||||||||||
Total | $ | (0.05 | ) | $ | 0.01 | $ | 0.00 | $ | (0.09 | ) | ||||||
Shares used in calculating diluted net income (loss) per share | 28,610 | 28,519 | 29,241 | 28,093 |
Immersion Corporation | ||||||||||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP Net Income (Loss) | $ | (1,310 | ) | $ | 180 | $ | 78 | $ | (2,474 | ) | ||||||
Interest and other income | (52 | ) | (63 | ) | (114 | ) | (142 | ) | ||||||||
Provision for income taxes | 267 | 423 | 861 | 762 | ||||||||||||
Depreciation and amortization | 239 | 286 | 485 | 582 | ||||||||||||
Amortization and impairment of intangibles | 335 | 204 | 692 | 439 | ||||||||||||
Stock-based compensation | 981 | 938 | 1,765 | 1,534 | ||||||||||||
Restatement costs | - | 37 | - | 1,664 | ||||||||||||
Restructuring costs and sale of business | - | (3 | ) | - | 42 | |||||||||||
Discontinued operations | (18 | ) | (30 | ) | (61 | ) | (61 | ) | ||||||||
Total adjustments | 1,752 | 1,792 | 3,628 | 4,820 | ||||||||||||
Adjusted EBITDA | $ | 442 | $ | 1,972 | $ | 3,706 | $ | 2,346 |
Edelman
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or
jennifer@blueshirtgroup.com
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