Immersion Corporation Reports Third Quarter 2011 Results
Total revenues for the third quarter of 2011 were
Net loss for the third quarter of 2011 was
"Third quarter revenues were weaker than anticipated due to softness in
the medical and automotive lines of business," said Immersion CEO
"We are also excited about our growing patent portfolio, which is
opening up new opportunities for us," continued
Revenues for the nine months ended
"Taking our results into account for the first nine months of the year,
combined with current data from our customers, we are revising our
outlook for fiscal 2011 and expect revenues to be in the range of
As of
Corporate Highlights
Immersion recently:
-
Saw the first devices launch in the market based on its
MOTIV Development platform with new mobile licensee Fujitsu. The F-12C mobile phone and the ARROWS tablet also incorporate Immersion's TouchSense 3000 software. - Secured new agreements with licensees of its technology for implementation into a wide variety of markets and applications. Licensees include Sirius XM Radio in the consumer market and MAKO Surgical in the robotic surgical market.
- Continued to build out its network of haptics ecosystems partners, including: establishing a new partnership with Microchip; adding certified component providers including Analog Devices and Semtech; and collaborating on a reference design leveraging Texas Instrument's driver devices for high-fidelity piezo actuators.
- Saw additional applications designed by numerous third party developers that incorporate haptic effects by using Immersion's MOTIV™ SDK.
- Continued to strengthen and broaden its patent portfolio to include features that serve the foundation of today's haptic user interfaces, including using haptics in a multitasking environment, within a touch screen GUI user interface and with expressive alerts, which associate distinct haptic effects to device alerts, such as calendar reminders or voice mail messages.
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
2011 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, continued disruption in the markets for Immersion's
and its licensees' products due to the recent earthquake and tsunami in
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)
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| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
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December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | (1) | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 14,509 | $ | 12,243 | ||||
| Short-term investments | 48,979 | 48,961 | ||||||
| Accounts and other receivables, net | 779 | 815 | ||||||
| Inventories | 579 | 406 | ||||||
| Deferred income taxes | 342 | 342 | ||||||
| Prepaid expenses and other current assets | 704 | 3,821 | ||||||
| Total current assets | 65,892 | 66,588 | ||||||
| Property and equipment, net | 1,279 | 1,931 | ||||||
| Intangibles and other assets, net | 13,771 | 12,356 | ||||||
| TOTAL ASSETS | $ | 80,942 | $ | 80,875 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 550 | $ | 393 | ||||
| Accrued compensation | 2,722 | 3,507 | ||||||
| Other current liabilities | 1,129 | 1,488 | ||||||
| Deferred revenue and customer advances | 4,459 | 4,429 | ||||||
| Total current liabilities | 8,860 | 9,817 | ||||||
| Long-term deferred revenue | 14,010 | 16,494 | ||||||
| Deferred income tax liabilities | 342 | 342 | ||||||
| Other long-term liabilities | 455 | 538 | ||||||
| TOTAL LIABILITIES | 23,667 | 27,191 | ||||||
| STOCKHOLDERS' EQUITY | 57,275 | 53,684 | ||||||
|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ | 80,942 | $ | 80,875 | ||||
| (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 | Nine Months | ||||||||||||||||
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Ended |
Ended September 30, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Royalty and license | $ | 5,875 | $ | 5,141 | $ | 20,110 | $ | 17,848 | |||||||||
| Product sales | 345 | 1,217 | 1,892 | 6,035 | |||||||||||||
| Development contracts and other | 275 | 189 | 943 | 848 | |||||||||||||
| Total revenues | 6,495 | 6,547 | 22,945 | 24,731 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of revenues | 192 | 457 | 913 | 2,587 | |||||||||||||
| Sales and marketing | 1,643 | 1,813 | 5,402 | 6,077 | |||||||||||||
| Research and development | 2,183 | 2,007 | 6,525 | 6,473 | |||||||||||||
| General and administrative | 3,195 | 3,008 | 9,367 | 11,808 | |||||||||||||
| Amortization and impairment of intangibles | 324 | 211 | 1,016 | 650 | |||||||||||||
| Total costs and expenses | 7,537 | 7,496 | 23,223 | 27,595 | |||||||||||||
| Operating Loss | (1,042 | ) | (949 | ) | (278 | ) | (2,864 | ) | |||||||||
| Interest and other income | 58 | 70 | 172 | 212 | |||||||||||||
| Loss from continuing operations before provision for income taxes | (984 | ) | (879 | ) | (106 | ) | (2,652 | ) | |||||||||
| Provision for income taxes | (428 | ) | (336 | ) | (1,289 | ) | (1,098 | ) | |||||||||
| Loss from continuing operations | (1,412 | ) | (1,215 | ) | (1,395 | ) | (3,750 | ) | |||||||||
| Discontinued operations: | |||||||||||||||||
| Gain on sales of discontinued operations | - | 82 | 61 | 143 | |||||||||||||
| Net Loss | $ | (1,412 | ) | $ | (1,133 | ) | $ | (1,334 | ) | $ | (3,607 | ) | |||||
| Basic and diluted net loss per share | |||||||||||||||||
| Continuing operations | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.13 | ) | |||||
| Discontinued operations | - | - | - | - | |||||||||||||
| Total | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.13 | ) | |||||
| Shares used in calculating basic and diluted net loss per share | 28,918 | 28,134 | 28,595 | 28,087 | |||||||||||||
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| Reconciliation of GAAP Net Income to Adjusted EBITDA | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months | Nine Months | ||||||||||||||||
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Ended |
Ended September 30, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| GAAP Net Loss | $ | (1,412 | ) | $ | (1,133 | ) | $ | (1,334 | ) | $ | (3,607 | ) | |||||
| Interest and other income | (58 | ) | (70 | ) | (172 | ) | (212 | ) | |||||||||
| Provision for income taxes | 428 | 336 | 1,289 | 1,098 | |||||||||||||
| Depreciation and amortization | 232 | 260 | 717 | 842 | |||||||||||||
| Amortization and impairment of intangibles | 324 | 211 | 1,016 | 650 | |||||||||||||
| Stock-based compensation | 940 | 896 | 2,705 | 2,430 | |||||||||||||
| Restatement costs | - | 10 | - | 1,674 | |||||||||||||
| Restructuring costs and sale of business | - | - | - | 42 | |||||||||||||
| Discontinued operations | - | (82 | ) | (61 | ) | (143 | ) | ||||||||||
| Total adjustments | 1,866 | 1,561 | 5,494 | 6,381 | |||||||||||||
| Adjusted EBITDA | $ | 454 | $ | 428 | $ | 4,160 | $ | 2,774 | |||||||||
Edelman
reagan.crossley@edelman.com
or
jennifer@blueshirtgroup.com
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