Immersion Corporation Reports Third Quarter 2014 Results
Posts Record September Quarter Revenue and
Increases Stock Repurchase Authorization
Total revenues for the third quarter of 2014 were
Non-GAAP net income for the third quarter of 2014 was
Management Commentary
"We are pleased to report record September quarter revenues that grew 6%
year-over-year and our seventh consecutive quarter of profitability. As
we close out the year, we expect our overall 2014 revenue to increase by
7% to 14% over the prior year, which results in a projected revenue
range of
Business Highlights
Immersion is developing innovative new software solutions to support its expanding market opportunity while continuing to empower premier OEMs with the technology to offer differentiated products and consumer experiences. Recent business developments include:
-
The launch of the company's TouchSense® Engage, its groundbreaking
software solution for enhancing mobile video with tactile effects. In
conjunction with this announcement,
SHOWTIME has launched the first ever haptically-enabled ad trailer, using Immersion's software technology, for its award winning drama series, HOMELAND, available in the SHOWTIME ANYTIME Android app. - A new agreement with long-time licensee LG Electronics, Inc. for a multi-year worldwide license for Immersion's TouchSense® software and Basic Haptics IP.
- Extending its license agreement with Samsung, for the use of TouchSense® and Integrator products in smartphones and other mobile devices, to the company's printing solutions business unit.
Conference Call Information
Immersion will host a conference call with company management on
About Immersion (www.immersion.com)
Founded in 1993, Immersion (NASDAQ: IMMR) is the leading innovator in haptic technology; the company's touch feedback solutions deliver a more compelling sense of the digital world. Using Immersion's high-fidelity haptic systems, partners can transform user experiences with unique and customizable touch feedback effects; excite the senses in games, videos and music; restore "mechanical" feel by providing intuitive and unmistakable confirmation; improve safety by overcoming distractions while driving; provide realistic touch feedback when performing robotic medical procedures and training simulations; and expand usability when audio and visual feedback are ineffective. Immersion's TouchSense technology provides haptics in mobile phone, automotive, gaming, medical and consumer electronics products from world-class companies. With over 1,800 issued or pending patents in the U.S. and other countries, Immersion helps bring the digital universe to life. Hear what we have to say at blog.immersion.com.
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 Income and Non-GAAP Net Income per diluted common share, because it is useful in understanding the company's performance as it excludes certain non-cash expenses 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 market opportunities and market awareness and future growth and our expectation for revenues and non-GAAP net income for 2014.
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 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; 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 Annual Report on Form 10-K
for 2013 and its most recent Quarterly Report on Form 10-Q which are 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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| 2014 | 2013 | |||||
| (Unaudited) |
(1) |
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| ASSETS | ||||||
| Cash and cash equivalents | $ | 10,139 | $ | 14,136 | ||
| Short-term investments | 52,989 | 56,976 | ||||
| Accounts and other receivables, net | 2,992 | 598 | ||||
| Deferred income taxes | 7,784 | 7,784 | ||||
| Prepaid expenses and other current assets | 1,085 | 690 | ||||
| Total current assets | 74,989 | 80,184 | ||||
| Property and equipment, net | 1,280 | 944 | ||||
| Deferred income tax assets | 27,527 | 29,066 | ||||
| Intangibles and other assets, net | 299 | 381 | ||||
| TOTAL ASSETS | $ | 104,095 | $ | 110,575 | ||
| LIABILITIES | ||||||
| Accounts payable | $ | 1,019 | $ | 682 | ||
| Accrued compensation | 1,665 | 4,680 | ||||
| Other current liabilities | 1,483 | 1,653 | ||||
| Deferred revenue | 13,007 | 8,920 | ||||
| Total current liabilities | 17,174 | 15,935 | ||||
| Long-term deferred revenue | 9,018 | 13,441 | ||||
| Other long-term liabilities | 451 | 528 | ||||
| TOTAL LIABILITIES | 26,643 | 29,904 | ||||
| STOCKHOLDERS' EQUITY | 77,452 | 80,671 | ||||
|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ | 104,095 | $ | 110,575 | ||
|
(1) |
Derived from Immersion's annual audited consolidated financial
statements, |
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| Condensed Consolidated Statements of Income | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months | Nine Months | |||||||||||||||
|
Ended |
Ended |
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| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenues: | ||||||||||||||||
| Royalty and license | $ | 11,714 | $ | 10,951 | $ | 38,473 | $ | 34,580 | ||||||||
| Product sales | 0 | 12 | 0 | 44 | ||||||||||||
| Development, services, and other | 337 | 379 | 845 | 779 | ||||||||||||
|
Total revenues |
12,051 | 11,342 | 39,318 | 35,403 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of revenues | 104 | 111 | 325 | 386 | ||||||||||||
| Sales and marketing | 2,238 | 2,151 | 7,638 | 6,692 | ||||||||||||
| Research and development | 2,718 | 2,640 | 8,782 | 7,876 | ||||||||||||
| General and administrative | 5,274 | 5,606 | 17,745 | 17,433 | ||||||||||||
| Amortization of intangibles | 15 | 20 | 55 | 60 | ||||||||||||
| Total costs and expenses | 10,349 | 10,528 | 34,545 | 32,447 | ||||||||||||
| Operating Income | 1,702 | 814 | 4,773 | 2,956 | ||||||||||||
| Interest and other income (expense) | (30 | ) | 42 | 107 | 80 | |||||||||||
| Income before provision for income taxes | 1,672 | 856 | 4,880 | 3,036 | ||||||||||||
| Provision for income taxes | (599 | ) | (257 | ) | (1,774 | ) | (284 | ) | ||||||||
| Net Income | $ | 1,073 | $ | 599 | $ | 3,106 | $ | 2,752 | ||||||||
| Basic net income per share | $ | 0.04 | $ | 0.02 | $ | 0.11 | $ | 0.10 | ||||||||
| Shares used in calculating basic net income per share | 28,505 | 28,558 | 28,420 | 28,047 | ||||||||||||
| Diluted net income per share | $ | 0.04 | $ | 0.02 | $ | 0.11 | $ | 0.09 | ||||||||
| Shares used in calculating diluted net income per share | 29,351 | 29,653 | 29,355 | 29,205 | ||||||||||||
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| Reconciliation of GAAP Net Income to Non-GAAP Net Income | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months | Nine Months | |||||||||||
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Ended |
Ended |
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| 2014 | 2013 | 2014 | 2013 | |||||||||
| GAAP Net Income | $ | 1,073 | $ | 599 | $ | 3,106 |
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$ | 2,752 | |||
| Stock-based compensation | 1,131 | 1,249 | 4,058 | 3,438 | ||||||||
| Non-GAAP Net Income | $ | 2,204 | $ | 1,848 | $ | 7,164 | $ | 6,190 | ||||
| Non-GAAP Earnings Per Share | $ | 0.08 | $ | 0.06 | $ | 0.24 | $ | 0.21 | ||||
| Shares used in calculating Non-GAAP Earnings per Share | 29,351 | 29,653 | 29,355 | 29,205 | ||||||||
Media Contact:
Edelman
reagan.crossley@edelman.com
or
Investor
Contact:
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