Immersion Corporation Reports Second Quarter 2017 Results
Files Lawsuits against Samsung Electronics and Motorola Mobility
Results for the quarter ended
Total revenues for the second quarter of 2017 were
Net loss for the second quarter of 2017 was
Non-GAAP net loss for the second quarter of 2017 was
Chief executive officer
"Taking into consideration our litigation with Apple, Samsung, Motorola,
and Fitbit, we are updating our 2017 guidance. We expect revenues to be
in the range of
"We continue to take a fiscally responsible approach as we utilize our
strong balance sheet to support our objectives in driving value for our
shareholders while positioning Immersion for continued long-term
Recent Business Highlights
Tokyo-based Mitsubishi Electric Corp. for Immersion's haptics IP for its automotive solutions.
- Partnered with SpotX to provide haptic-enabled video advertising opportunities to market at scale on mobile devices, enabling all media owners on SpotX's platform access to Immersion's haptic technology, empowering advertisers with high-impact, tactile experiences.
Licensed Shenzhen-based Realtime Technology Co., Ltd to embed
Immersion's TouchSense® Premium solution in
Realtime'sPacewear smart wearable products.
- Licensed Onkyo Corp., a Japanese leading electronics manufacturer, enabling Onkyo to use Immersion TouchSense® Premium and TouchSense® Lite technologies in its smartphones.
Complaints against Samsung and Motorola
Immersion also announced that it has filed a complaint in the
The complaints against Samsung and Motorola assert infringement of the following patents:
U.S.Patent No 6,429,846: "Haptic Feedback for Touchpads and Other Touch Controls"
U.S.Patent No 7,969,288: "Force Feedback System Including Multi-Tasking Graphical Host Environment and Interface Device"
U.S.Patent No 9,323,332: "Force Feedback System Including Multi-Tasking Graphical Host Environment"
U.S.Patent No 7,982,720: "Haptic Feedback for Touchpads and Other Touch Controls"
U.S.Patent No 8,031,181: "Haptic Feedback for Touchpads and Other Touch Controls"
Conference Call Information
Immersion will host a conference call with company management on
Immersion, and the Immersion logo are trademarks of Immersion Corporation in the United States and other countries. All other trademarks are the property of their respective owners.
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, such as Non-GAAP net loss and Non-GAAP net loss per share, because it is useful in understanding the company's performance as it more closely reflects its expected long-term effective tax rates and excludes certain non-cash expenses and other special charges, such as deferred tax assets valuation allowance, 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.
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, our expectation that revenues for 2017 will be in the
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; the impact of litigation developments on existing and potential customers; delay in or failure to achieve commercial demand for Immersion's or its licensees' products; unexpected difficulties in monetizing the patent portfolio; the commercial success of applications or devices into which Immersion's technology is licensed; the continued popularity of mobile games and wearables; potentially lengthy sales cycles and design processes; unanticipated difficulties and challenges encountered in development efforts; unexpected costs; the fact that certain target markets are still relatively nascent; risks associated with doing business internationally; litigation costs in any current or future litigation; failure to retain key personnel; ability to retain personnel; competition; the inherently uncertain nature of litigation which makes future outcomes and timing difficult to predict; the impact of global economic conditions and foreign currency exchange rates 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 Annual Report on Form 10-K
for 2016 and its most recent Quarterly Report on Form 10-Q which are on
file with the
Immersion, the Immersion logo and TouchSense are trademarks or
registered 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)
|Condensed Consolidated Balance Sheets|
|Cash and cash equivalents||$||33,152||$||56,865|
|Accounts receivable, net||3,335||1,382|
|Prepaid expenses and other current assets||989||2,876|
|Total current assets||66,339||94,030|
|Property and equipment, net||3,638||4,016|
|Deferred income tax assets||437||359|
|Prepaid income taxes||-||4,997|
|Intangibles and other assets, net||363||365|
|Other current liabilities||3,886||4,409|
|Total current liabilities||21,482||21,022|
|Long-term deferred revenue||24,369||26,393|
|Other long-term liabilities||963||1,012|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
|(1) Derived from Immersion's annual audited consolidated financial statements.|
|Condensed Consolidated Statements of Operations|
|(In thousands, except per share amounts)|
|Three Months||Six Months|
|Royalty and license||$||6,785||$||7,615||$||15,791||$||21,063|
|Development, services, and other||245||249||463||424|
|Costs and expenses:|
|Cost of revenues||54||61||97||87|
|Sales and marketing||3,461||3,397||6,766||7,200|
|Research and development||2,826||2,966||6,022||7,278|
|General and administrative||15,600||11,001||31,132||21,091|
|Total costs and expenses||21,941||17,425||44,017||35,656|
|Interest and other income||165||33||304||245|
|Loss from continuing operations before benefit (provision) for income taxes||(14,746||)||(9,528||)||(27,459||)||(13,924||)|
|Benefit (provision) for income taxes||(99||)||3,323||(251||)||5,024|
|Loss from continuing operations||(14,845||)||(6,205||)||(27,710||)||(8,900||)|
|Income from discontinued operations||-||649||-||649|
|Basic and diluted net loss per share|
|Shares used in calculating basic and diluted net loss per share||29,193||28,834||29,109||28,663|
|Reconciliation of GAAP Net Loss to Non-GAAP Net Loss|
|(In thousands, except per share amounts)|
|GAAP net loss||$||(14,845||)||$||(5,556||)||$||(27,710||)||$||(8,251||)|
|Add: Stock-based compensation||1,178||1,255||2,735||3,589|
|Add: Provision (benefit) for income taxes||99||(3,323||)||251||(5,024||)|
Less: Non-GAAP benefit for income taxes on continuing operations (at 19%)
|Non-GAAP net loss||$||(10,766||)||$||(5,814||)||$||(19,507||)||$||(7,040||)|
|Non-GAAP loss per share||$||(0.37||)||$||(0.20||)||$||(0.67||)||$||(0.25||)|
|Shares used in calculating Non-GAAP loss per share||29,193||28,834||29,109||28,663|
News Provided by Acquire Media