Welcome!

Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

News Feed Item

Immersion Corporation Reports Third Quarter 2012 Results

Immersion Corporation (NASDAQ: IMMR), the leader in touch feedback technology development and licensing, today reported financial results for the third quarter ended September 30, 2012.

Total revenues for the third quarter of 2012 were $7.1 million, an increase of 10% compared with $6.5 million for the third quarter of 2011. Royalty and license revenues of $6.4 million for the third quarter of 2012 were up 8% from the same period last year. Net loss for the third quarter of 2012 was $(3.0) million, or $(0.11) per share. This compares to a net loss of $(1.4) million, or $(0.05) per share, for the third quarter of 2011. Adjusted EBITDA for the third quarter of 2012 was $(1.6) million, as compared to $454 thousand in the third quarter of 2011.

“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 Victor Viegas. “While our bottom line reflects the timing of legal expenses during the period, we are pleased with the manner and speed with which we are progressing through the ITC process and projected timeline and remain committed to fully monetizing our IP in a way that fairly values our technology. We continue to believe there is potential for Immersion to monetize unrealized opportunity for Basic Haptics in the current fiscal year, and restate our revenue guidance of $32 to $38 million for 2012 with positive Adjusted EBITDA. This forecast is predicated on our existing base business supporting the lower end of the range and the potential for Basic Haptics licensing revenue from litigation settlements and other unlicensed companies providing the upside.”

As of September 30, 2012, Immersion’s cash, cash equivalents, and short-term investments were $47.9 million, compared to $56.3 million as of December 31, 2011. During the third quarter of 2012, the Company used approximately $3.2 million to purchase 581,200 shares of its common stock, resulting in a total of $5.2 million used to purchase 968,488 shares during the year to date.

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 Thursday, November 1, 2012 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the third quarter ended September 30, 2012. To participate on the live call, analysts and investors should dial +1 877-941-2068 at least ten minutes prior to the start of the call. A replay of the call will be available until 11:59 p.m. Pacific time on November 8, 2012 by dialing +1 800-406-7325 and entering the passcode 4569142#. A live and archived webcast of the conference call will also be available for 90 days within the investor relations section of Immersion’s corporate Web site at www.immersion.com.

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 or performing a medical procedure; 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 1,200 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 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 Immersion Corporation and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements.

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 $32 to $38 million, and the expectation as to our Adjusted EBITDA for the full year and other statements regarding future growth and our intellectual property.

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 U.S. Securities and Exchange Commission. The forward-looking statements in this press release reflect Immersion's beliefs and predictions as of the date of this release. Immersion disclaims any obligation to update these forward-looking statements as a result of financial, business, or any other developments occurring after the date of this release.

Immersion, the Immersion logo, TouchSense, HD Haptics and Reverb are trademarks of Immersion Corporation in the United States and other countries. All other trademarks are the property of their respective owners.

The use of the word "partner" or "partnership" in this press release does not mean a legal partner or legal partnership.

(IMMR – C)

 
 
Immersion Corporation
Condensed Consolidated Balance Sheets
(In thousands)
       
September 30, 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.
 
 
Immersion Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
           
Three Months Nine Months
Ended September 30, 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  
           
 
Immersion Corporation
Reconciliation of GAAP Net Income to Adjusted EBITDA
(In thousands)
(Unaudited)
 
Three Months Nine Months
Ended September 30, 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  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things’). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing? IoT is not about the devices, it’s about the data consumed and generated. The devices are tools, mechanisms, conduits. In his session at Internet of Things at Cloud Expo | DXWor...