Immersion Corporation Reports Third Quarter 2012 Results
Total revenues for the third quarter of 2012 were
"We are pleased to report year-over-year revenue growth in the third
quarter, and we continue to see touch feedback become increasingly
integral to the mobile user experience," said Immersion CEO
As of
Corporate Highlights
Recently:
- Docomo launched the MEDIAS TAB UL N-08D Tablet by NEC, which is the first commercial implementation of Immersion's HD Reverb software. HD Reverb automatically enhances games, videos and music by monitoring audio output and creating complementary haptic effects in real time. The 7-inch tablet, which also includes Immersion's Integrator software, leverages next-generation HD Haptics technology using a high-fidelity piezo actuator combined with Immersion's TouchSense® 5000 software to deliver crisp, realistic and nuanced touch effects.
-
Popular casual gaming developer
Handy Games incorporated Immersion's haptics into six of their apps during the quarter, introducing tactile effects to their millions of Android users.
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 relating to
monetization of Basic Haptics intellectual property, 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 inherently uncertain nature of litigation which makes future outcomes and timing difficult to predict; 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 | $ | 13,889 | $ | 7,298 | ||||||
| Short-term investments | 33,985 | 48,987 | ||||||||
| Accounts and other receivables, net | 1,402 | 1,487 | ||||||||
| Inventories | 359 | 423 | ||||||||
| Deferred income taxes | 215 | 215 | ||||||||
| Prepaid expenses and other current assets | 773 | 479 | ||||||||
| Total current assets | 50,623 | 58,889 | ||||||||
| Property and equipment, net | 1,426 | 1,737 | ||||||||
| Intangibles and other assets, net | 15,447 | 14,053 | ||||||||
| TOTAL ASSETS | $ | 67,496 | $ | 74,679 | ||||||
| LIABILITIES | ||||||||||
| Accounts payable | $ | 1,717 | $ | 365 | ||||||
| Accrued compensation | 2,412 | 2,830 | ||||||||
| Other current liabilities | 2,478 | 2,054 | ||||||||
| Deferred revenue and customer advances | 4,651 | 4,120 | ||||||||
| Total current liabilities | 11,258 | 9,369 | ||||||||
| Long-term deferred revenue | 10,999 | 13,229 | ||||||||
| Deferred income tax liabilities | 215 | 215 | ||||||||
| Other long-term liabilities | 584 | 245 | ||||||||
| TOTAL LIABILITIES | 23,056 | 23,058 | ||||||||
| STOCKHOLDERS' EQUITY | 44,440 | 51,621 | ||||||||
| TOTAL LIABILITIES & | ||||||||||
| STOCKHOLDERS' EQUITY | $ | 67,496 | $ | 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 | Nine Months | |||||||||||||||||
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Ended |
Ended September 30, | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Revenues: | ||||||||||||||||||
| Royalty and license | $ | 6,371 | $ | 5,875 | $ | 21,386 | $ | 20,110 | ||||||||||
| Product sales | 529 | 345 | 1,145 | 1,892 | ||||||||||||||
| Development contracts and other | 242 | 275 | 778 | 943 | ||||||||||||||
| Total revenues | 7,142 | 6,495 | 23,309 | 22,945 | ||||||||||||||
| Costs and expenses: | ||||||||||||||||||
| Cost of revenue | 273 | 192 | 802 | 913 | ||||||||||||||
| Sales and marketing | 1,632 | 1,643 | 5,072 | 5,402 | ||||||||||||||
| Research and development | 2,088 | 2,183 | 6,406 | 6,525 | ||||||||||||||
| General and administrative | 5,750 | 3,195 | 14,882 | 9,367 | ||||||||||||||
| Amortization and impairment of intangibles | 337 | 324 | 1,071 | 1,016 | ||||||||||||||
| Total costs and expenses | 10,080 | 7,537 | 28,233 | 23,223 | ||||||||||||||
| Operating Loss | (2,938 | ) | (1,042 | ) | (4,924 | ) | (278 | ) | ||||||||||
| Interest and other income | 66 | 58 | 144 | 172 | ||||||||||||||
| Loss from continuing operations before provision for income taxes | (2,872 | ) | (984 | ) | (4,780 | ) | (106 | ) | ||||||||||
| Provision for income taxes | (118 | ) | (428 | ) | (737 | ) | (1,289 | ) | ||||||||||
| Loss from continuing operations | (2,990 | ) | (1,412 | ) | (5,517 | ) | (1,395 | ) | ||||||||||
| Discontinued operations: | ||||||||||||||||||
| Gain on sales of discontinued operations | - | - | 153 | 61 | ||||||||||||||
| Net Loss | $ | (2,990 | ) | $ | (1,412 | ) | $ | (5,364 | ) | $ | (1,334 | ) | ||||||
| Basic and diluted net loss per share | ||||||||||||||||||
| Continuing operations | $ | (0.11 | ) | $ | (0.05 | ) | $ | (0.20 | ) | $ | (0.05 | ) | ||||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | 0.00 | ||||||||||
| Total | $ | (0.11 | ) | $ | (0.05 | ) | $ | (0.19 | ) | $ | (0.05 | ) | ||||||
| Shares used in calculating basic and diluted net loss per share | 27,658 | 28,918 | 27,885 | 28,595 | ||||||||||||||
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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, | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| GAAP Net Loss | $ | (2,990 | ) | $ | (1,412 | ) | $ | (5,364 | ) | $ | (1,334 | ) | ||||||
| Interest and other income | (66 | ) | (58 | ) | (144 | ) | (172 | ) | ||||||||||
| Provision for income taxes | 118 | 428 | 737 | 1,289 | ||||||||||||||
| Depreciation and amortization | 163 | 232 | 490 | 717 | ||||||||||||||
| Amortization and impairment of intangibles | 337 | 324 | 1,071 | 1,016 | ||||||||||||||
| Stock-based compensation | 808 | 940 | 2,346 | 2,705 | ||||||||||||||
| Discontinued operations | - | - | (153 | ) | (61 | ) | ||||||||||||
| Total adjustments | 1,360 | 1,866 | 4,347 | 5,494 | ||||||||||||||
| Adjusted EBITDA | $ | (1,630 | ) | $ | 454 | $ | (1,017 | ) | $ | 4,160 | ||||||||
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