- Generated 14% of revenue growth over first quarter 2020,
positive operating cash flow, and strong profitability
- Sees continued sequential improvement in revenue and operating
income for the remainder of the year
- Closed the quarter with cash and cash equivalents of over $3
per share
Immersion Corporation (NASDAQ: IMMR), the leading developer and
provider of technologies for haptics, today reported financial
results for the first quarter ended March 31, 2021.
First Quarter Financial Summary:
- Total revenues of $7.2 million, compared to $6.3 million in the
first quarter of 2020. Royalty and license revenues were $7.1
million, compared to $6.2 million in the first quarter of
2020.
- GAAP operating expenses of $4.6 million declined 57% from $10.8
million in the first quarter of 2020. Non-GAAP operating expenses
of $4.0 million declined 53% from non-GAAP operating expenses of
$8.5 million in the first quarter of 2020. (See attached table for
a reconciliation of GAAP to non-GAAP financial measures.)
- GAAP net income was $2.0 million, or $0.07 per diluted share,
compared to GAAP net loss of $4.8 million, or $0.16, in the first
quarter of 2020.
- Non-GAAP net income was $2.8 million, or $0.10 per diluted
share, compared to non-GAAP net loss of $2.6 million, or $0.08, in
the first quarter of 2020.
- As of March 31, 2021, cash and cash equivalents totaled $102.6
million.
Financial Outlook:
“The positive financial results that we report today is the
result of our team’s progress in transforming the business, despite
the uncertain environment of COVID 19. With continued disciplined
focus on optimizing operating expenses and growing our revenues,
Immersion is on a positive trajectory toward improved profitability
and cash flow generation,” said Jared Smith, Immersion’s Interim
CEO. “Interest in haptics is at an all-time high. We expect that as
more consumers experience advanced haptics, we’ll see greater
adoption of our technology in our core markets, resulting in
continued growth for the company.”
Recent Business Highlights:
- Continued adoption of haptics by automotive brands, including
the new Cadillac Celestiq and BMW iX, supplied by existing
Immersion tier 1 licensees.
- Year over year quarterly revenue growth in each of Immersion’s
three core markets: automotive, gaming, and mobile.
- Panasonic Mobile Communications Co. Ltd. renewed its license
for Immersion technology and TouchSense software in mobile.
- Expanded the reach of our channel partner program, reflecting
increased momentum in the China mobile market.
First Quarter Earnings Conference Call and Webcast
Immersion will host a conference call with company management
today at 2:00 p.m. PT (5:00 p.m. ET) to discuss financial results
for the first quarter ended March 31, 2021. To participate on the
live call, analysts and investors should dial +1-800-367-2403
(conference ID: 8181866) at least ten minutes prior to the start of
the call.
A recorded webcast will also be available for 90 days in the "IR
News and Events” page of Immersion's Investor Relations website at
https://ir.immersion.com/news-and-events.
About Immersion
Immersion Corporation (NASDAQ: IMMR) is the leading innovator of
touch feedback technology, also known as haptics. The company
invents, accelerates, and scales haptic experiences by providing
technology solutions for mobile, automotive, gaming, and consumer
electronics. Haptic technology creates immersive and realistic
experiences that enhance digital interactions by engaging users'
sense of touch. Learn more at www.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 (loss) and Non-GAAP net income (loss)
per diluted share because it is useful in understanding the
company’s performance as it excludes certain non-cash expenses like
stock-based compensation expense and other special charges, such as
deferred tax assets valuation allowance, depreciation and
restructuring costs, 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. Non-GAAP financial measures should
be viewed in addition to, and not as an alternative for, the
Company’s reported results under GAAP. The non-GAAP financial
measures are not intended to be considered in isolation or as a
substitute for results prepared in accordance with GAAP. Such
non-GAAP financial measures are reconciled to their closest GAAP
financial measures in tables contained in this press release. The
Company has not reconciled the non-GAAP financial measures guidance
to the corresponding GAAP measures on a forward-looking basis due
to the uncertainty and the potential variability of many of the
costs and expenses that may be incurred in the future. Accordingly,
reconciliations of the Company’s forward-looking non-GAAP financial
measures to the corresponding GAAP measures are not available
without unreasonable effort.
Forward-looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). The
forward-looking statements involve risks and uncertainties.
Forward-looking statements are identified by words such as
“anticipates,” “believes,” “expects,” “intends,” “may,” “can,”
“will,” “places,” “estimates,” and other similar expressions.
However, these words are not the only way we identify
forward-looking statements. Examples of forward-looking statements
include any expectations, projections, or other characterizations
of future events, or circumstances, and include statements
regarding our expectation that as more consumers experience
advanced haptics, we will see greater adoption of our technology in
our core markets, resulting in continued growth for the Company,
and other statements regarding the future prospects and
opportunities for the Company’s business.
Because forward-looking statements relate to the future, they
are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Actual results could differ materially from
those projected in the forward-looking statements, therefore we
caution you not to place undue reliance on these forward-looking
statements. Important factors that could cause our actual results
and financial condition to differ materially from those indicated
in the forward-looking statements include, among others, the
following: the effects of the COVID-19 global pandemic on the
Company and its business, and on the business of its suppliers and
customers; unanticipated changes in the markets in which the
Company operates; the effects of the current macroeconomic climate
(especially in light of the ongoing adverse effects of the COVID-19
global pandemic); delay in or failure to achieve adoption of or
commercial demand for the Company’s products or third party
products incorporating the Company’s technologies; the inability of
Immersion to renew existing licensing arrangements, or enter into
new licensing arrangements on favorable terms; the loss of a major
customer; the ability of Immersion to protect and enforce its
intellectual property rights and other factors. 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 2020 and its most recent Quarterly Report on Form 10-Q which
are on file with the U.S. Securities and Exchange Commission. Any
forward-looking statements made by us in this press release speak
only as of the date of this press release, and Immersion does not
intend to update these forward-looking statements after the date of
this press release, except as required by law.
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. 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)
March 31, 2021
December 31, 2020
(Unaudited)
(1)
ASSETS
Cash and cash equivalents
$
102,624
$
59,522
Accounts and other receivables
2,034
2,218
Prepaid expenses and other current
assets
11,213
12,610
Total current assets
115,871
74,350
Property and equipment, net
254
209
Long-term deposits
12,296
12,571
Other assets
7,987
9,000
TOTAL ASSETS
$
136,408
$
96,130
LIABILITIES
Accounts payable
$
469
$
149
Accrued compensation
933
1,001
Other current liabilities
2,718
2,457
Deferred revenue
5,098
5,173
Total current liabilities
9,218
8,780
Long-term deferred revenue
20,183
21,334
Other long-term liabilities
1,709
2,035
TOTAL LIABILITIES
31,110
32,149
STOCKHOLDERS’ EQUITY
105,298
63,981
TOTAL LIABILITIES & STOCKHOLDERS’
EQUITY
$
136,408
$
96,130
(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 Ended March
31,
2021
2020
Revenues:
Royalty and license
$
7,068
$
6,182
Development, services, and other
91
75
Total revenues
7,159
6,257
Costs and expenses:
Cost of revenues
29
44
Sales and marketing
1,106
1,716
Research and development
1,307
1,689
General and administrative
2,224
7,356
Total costs and expenses
4,666
10,805
Operating income (loss)
2,493
(4,548
)
Interest and other income (loss), net
(316
)
(228
)
Income (loss) before provision for income
taxes
2,177
(4,776
)
Provision for income taxes
(141
)
(52
)
Net income (loss)
$
2,036
$
(4,828
)
Basic net income (loss) per share
$
0.07
$
(0.16
)
Shares used in calculating basic net
income (loss) per share
28,579
31,006
Diluted net income (loss) per share
$
0.07
$
(0.16
)
Shares used in calculating diluted net
income (loss) per share
29,180
31,006
Immersion Corporation
Reconciliation of GAAP Net
Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands, except per
share amounts)
(Unaudited)
Three Months Ended
March 31,
2021
2020
GAAP net income (loss)
$
2,036
$
(4,828
)
Add: Provision for income taxes
141
52
Less: Non-GAAP provision for income
taxes
(29
)
(42
)
Add: Stock-based compensation
531
729
Add: Restructuring expense
101
524
Add: Depreciation and amortization of
property and equipment
$
24
$
963
Non-GAAP net income (loss)
$
2,804
$
(2,602
)
Non-GAAP net income (loss) per diluted
share
$
0.10
$
(0.08
)
Dilutive shares used in calculating
Non-GAAP net income (loss) per share
29,180
31,006
Immersion Corporation
Disaggregated Revenue
Information
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2021
2020
Fixed fee license revenue
$
1,275
$
1,287
Per-Unit royalty revenue
5,793
4,895
Total royalty and license revenue
7,068
6,182
Development, services, and other
revenue
91
75
Total revenue
$
7,159
$
6,257
Immersion Corporation
Revenue by Line of
Business
(Unaudited)
Three Months Ended March
31,
2021
2020
Mobility
68
%
77
%
Gaming
19
%
11
%
Automotive
13
%
12
%
Total
100
%
100
%
Immersion Corporation
Reconciliation of GAAP
Operating Expenses to Non-GAAP Operating Expenses
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2021
2020
GAAP operating expenses
$
4,637
$
10,761
Adjustments to non-GAAP operating
expenses:
Stock-based compensation expense -
S&M
(224
)
(45
)
Stock-based compensation expense -
R&D
(318
)
(168
)
Stock-based compensation expense -
G&A
11
(516
)
Restructuring expense
(101
)
(524
)
Depreciation and amortization of property
and equipment
(24
)
(963
)
Non-GAAP operating expenses
$
3,981
$
8,545
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506006125/en/
Aaron Akerman Immersion Corporation 514-987-9800 ext. 5110
aakerman@immersion.com
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