Immersion Corporation Reports Second Quarter 2012 Results
Total revenues for the second quarter of 2012 were
"We continue to see opportunity for our solutions in our mobile,
automotive and gaming lines of business, in particular our success with
mobile OEMs in
"Based on our current outlook and taking into account potential Basic
Haptics royalty agreements and payments from new and/or existing
customers prior to the end of the year, we are broadening our expected
revenue range for fiscal 2012 to
As of
Corporate Highlights
Recently:
- Immersion licensee Samsung began shipping the latest release of their flagship smartphone, the Galaxy S III. In addition to using TouchSense® 3000 software, the Galaxy S III also includes Immersion's Reverb technology. Marketed by Samsung as Auto Haptics, Reverb uses specially designed algorithms to automatically translate audio from an application into haptic effects, creating a more engaging consumer experience.
- Fujitsu announced the world's first smartphone with Immersion HD Haptics. The Raku-Raku F-12D smartphone uses Immersion's TouchSense 5000 embedded control software to control a high-fidelity piezo actuator, creating high quality haptic effects to enhance the Raku-Raku's trademark easy-to-navigate interface.
- Google invited Immersion to participate in their Developer Sandbox at the Google I/O conference. At Google I/O, Immersion demonstrated the latest updates to its Haptic Development Platform, which provides new capabilities and flexibility for third-party developers to incorporate touch feedback into games and applications.
- Daesung incorporated Immersion haptic feedback in its automotive control system design, which was introduced in the 2013 Kia K9 sedan. Daesung selected Immersion's TouchSense force feedback technology to create an adaptive user interface through a rotary knob that dynamically adjusts haptic feedback based on the information available to the user.
- Texas Instruments released two new integrated amplifiers to improve the performance of haptic actuators in mobile devices. The DRV 2665 is the first integrated amplifier for piezo modules that is compliant with Immersion's TouchSense 5000 embedded software, while the DRV 2603 supports devices using Immersion's TouchSense 3000 embedded software with resonant actuators.
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 measures. 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
2012 revenues to be in the range of
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, potential and actual claims and proceedings, including litigation involving Immersion's intellectual property; delay in or failure to achieve commercial demand for Immersion's or its licensees' products; a delay in or failure to achieve the acceptance of force feedback as a critical user experience; unexpected difficulties in transitioning to a pure IP licensing model and in monetizing the patent portfolio; the commercial success of applications or devices into which Immersion's technology is licensed; potentially lengthy sales cycles and design processes; unanticipated difficulties and challenges encountered in development efforts; potential restructuring charges; unexpected costs; failure to retain key personnel; competition; the impact of global economic conditions and other factors. Many of these risks and uncertainties are beyond the control of Immersion.
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 most recent Quarterly
Report on Form 10-Q, which is on file with the
Immersion, the Immersion logo, TouchSense, HD Haptics and Reverb 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)
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| Condensed Consolidated Balance Sheets | ||||||
| (In thousands) | ||||||
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December 31, | |||||
| 2012 | 2011 | |||||
| (Unaudited) |
(1) |
|||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 8,397 | $ | 7,298 | ||
| Short-term investments | 43,964 | 48,987 | ||||
| Accounts and other receivables, net | 2,748 | 1,487 | ||||
| Inventories | 403 | 423 | ||||
| Deferred income taxes | 215 | 215 | ||||
| Prepaid expenses and other current assets | 743 | 479 | ||||
| Total current assets | 56,470 | 58,889 | ||||
| Property and equipment, net | 1,520 | 1,737 | ||||
| Intangibles and other assets, net | 14,933 | 14,053 | ||||
| TOTAL ASSETS | $ | 72,923 | $ | 74,679 | ||
| LIABILITIES | ||||||
| Accounts payable | $ | 1,678 | $ | 365 | ||
| Accrued compensation | 2,089 | 2,830 | ||||
| Other current liabilities | 1,778 | 2,054 | ||||
| Deferred revenue and customer advances | 5,109 | 4,120 | ||||
| Total current liabilities | 10,654 | 9,369 | ||||
| Long-term deferred revenue | 11,738 | 13,229 | ||||
| Deferred income tax liabilities | 215 | 215 | ||||
| Other long-term liabilities | 604 | 245 | ||||
| TOTAL LIABILITIES | 23,211 | 23,058 | ||||
| STOCKHOLDERS' EQUITY | 49,712 | 51,621 | ||||
| TOTAL LIABILITIES & | ||||||
| STOCKHOLDERS' EQUITY | $ | 72,923 | $ | 74,679 | ||
| (1) Derived from Immersion's annual audited consolidated financial statements. | ||||||
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| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months | Six Months | |||||||||||||||
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Ended |
Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues: | ||||||||||||||||
| Royalty and license | $ | 5,930 | $ | 5,882 | $ | 15,015 | $ | 14,235 | ||||||||
| Product sales | 344 | 546 | 616 | 1,547 | ||||||||||||
| Development contracts and other | 202 | 254 | 536 | 668 | ||||||||||||
| Total revenues | 6,476 | 6,682 | 16,167 | 16,450 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of revenue | 214 | 247 | 529 | 721 | ||||||||||||
| Sales and marketing | 1,694 | 1,909 | 3,440 | 3,759 | ||||||||||||
| Research and development | 2,124 | 2,243 | 4,318 | 4,342 | ||||||||||||
| General and administrative | 4,361 | 3,061 | 9,132 | 6,172 | ||||||||||||
| Amortization and impairment of intangibles | 393 | 335 | 734 | 692 | ||||||||||||
| Total costs and expenses | 8,786 | 7,795 | 18,153 | 15,686 | ||||||||||||
| Operating Income (loss) | (2,310 | ) | (1,113 | ) | (1,986 | ) | 764 | |||||||||
| Interest and other income | 68 | 52 | 78 | 114 | ||||||||||||
| Income (loss) from continuing operations before provision for income taxes | (2,242 | ) | (1,061 | ) | (1,908 | ) | 878 | |||||||||
| Provision for income taxes | (66 | ) | (267 | ) | (619 | ) | (861 | ) | ||||||||
| Income (loss) from continuing operations | (2,308 | ) | (1,328 | ) | (2,527 | ) | 17 | |||||||||
| Discontinued operations: | ||||||||||||||||
| Gain on sales of discontinued operations | 153 | 18 | 153 | 61 | ||||||||||||
| Net Income (loss) | $ | (2,155 | ) | $ | (1,310 | ) | $ | (2,374 | ) | $ | 78 | |||||
| Basic net income (loss) per share | ||||||||||||||||
| Continuing operations | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | 0.00 | |||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||
| Total | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | 0.00 | |||||
| Shares used in calculating basic net income (loss) per share | 28,058 | 28,610 | 28,000 | 28,431 | ||||||||||||
| Diluted net income (loss) per share | ||||||||||||||||
| Continuing operations | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | 0.00 | |||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||
| Total | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | 0.00 | |||||
| Shares used in calculating diluted net income (loss) per share | 28,058 | 28,610 | 28,000 | 29,241 | ||||||||||||
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| Reconciliation of GAAP Net Income to Adjusted EBITDA | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months | Six Months | |||||||||||||||
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Ended |
Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| GAAP Net Income (Loss) | $ | (2,155 | ) | $ | (1,310 | ) | $ | (2,374 | ) | $ | 78 | |||||
| Interest and other income | (68 | ) | (52 | ) | (78 | ) | (114 | ) | ||||||||
| Provision for income taxes | 66 | 267 | 619 | 861 | ||||||||||||
| Depreciation and amortization | 161 | 239 | 327 | 485 | ||||||||||||
| Amortization and impairment of intangibles | 393 | 335 | 734 | 692 | ||||||||||||
| Stock-based compensation | 818 | 981 | 1,538 | 1,765 | ||||||||||||
| Discontinued operations | (153 | ) | (18 | ) | (153 | ) | (61 | ) | ||||||||
| Total adjustments | 1,217 | 1,752 | 2,987 | 3,628 | ||||||||||||
| Adjusted EBITDA | $ | (938 | ) | $ | 442 | $ | 613 | $ | 3,706 | |||||||
Edelman
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or
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