GAAP Net Income of $7.0 million or $0.21 per
diluted share Non-GAAP Net Income of $9.1 million or $0.28
per diluted share Repurchased 1.3% of shares outstanding
Declares Fourth Consecutive Quarterly Dividend
Immersion Corporation (NASDAQ: IMMR), a leading developer and
provider of technologies for haptics, today reported financial
results for the second quarter ended June 30, 2023.
Second Quarter Financial Summary:
- Total revenues of $7.0 million, compared to $8.0 million in the
second quarter of 2022. Royalty and license revenues were $6.9
million, compared to $7.9 million in the second quarter of
2022.
- GAAP net income was $7.0 million, or $0.21 per diluted share,
compared to GAAP net loss of $1.8 million, or $0.05 per diluted
share, in the second quarter of 2022.
- GAAP operating expenses of $3.9 million in the second quarter
of 2023, flat compared to the second quarter of 2022. Non-GAAP
operating expenses of $2.5 million in the second quarter of 2023,
compared to Non-GAAP operating expenses of $2.9 million in the
second quarter of 2022. (See attached table for a reconciliation of
GAAP to non-GAAP financial measures.)
- Non-GAAP net income was $9.1 million, or $0.28 per diluted
share in the second quarter of 2023, compared to non-GAAP net loss
of $1.1 million, or $0.03 per diluted share in the second quarter
of 2022.
- Repurchased 413,696 shares in the second quarter of 2023 (1.3%
of shares outstanding at June 30, 2023) at an average price of
$6.88 per share.
“We are pleased with our quarterly performance in the face of
continued macroeconomic pressures,” said Eric Singer, Chairman and
CEO. “During the quarter we leveraged our robust balance sheet to
make share repurchases, retiring 1.3% of our shares outstanding. We
also extended our share repurchase program by twelve months through
December 29, 2024. Our stockholders’ equity increased by $4.3
million sequentially and $12.3 million year-to-date while providing
$3.9 million and $5.1 million, respectively, in stock repurchases
and dividends.”
“We continue to vigorously pursue patent infringement lawsuits
against Meta, Valve, and Xiaomi as we execute our long-term
strategy of enforcing our intellectual property, renewing key
license agreements and leveraging our significant balance sheet
strength to pursue thoughtful capital allocation,” Singer
added.
The fourth quarterly dividend will be paid on October 27, 2023
to shareholders of record on October 16, 2023. Future quarterly
dividends will be subject to further review and approval by the
Board of Directors (the “Board”) in accordance with applicable law.
The Board reserves the right to adjust or withdraw the quarterly
dividend in future periods as it reviews the Company’s capital
allocation strategy from time-to-time. In addition, on August 8,
2023, the Board approved an amendment to extend the expiration date
of the Company’s current stock repurchase program that was set to
expire on December 29, 2023 to December 29, 2024. The stock
repurchase program was originally approved on December 29, 2022 and
authorized the repurchase of up to $50 million of the Company’s
common stock.
Q2 2023 Business Highlights:
- In May, we completed a multi-year license agreement renewal
with Marelli Corporation (formerly Calsonic Kansei Corporation), a
manufacturer and developer of automotive solutions.
- In May, Sensel Inc., a manufacturer and developer of trackpad
solutions, signed a multi-year patent license agreement.
About Immersion
Immersion Corporation (NASDAQ: IMMR) is a 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, Non-GAAP operating expenses and
Non-GAAP net income 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, 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.
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, including but not limited to
statements about the Company’s focus on protecting its intellectual
property, either through the execution of new or renewal license
agreements or by proactive enforcement continuing to pursue
thoughtful capital allocation to increase long-term shareholder
value, and the timing of any dividend payments.
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 inability to predict the outcome of any litigation,
the costs associated with any litigation and the risks related to
our business, both direct and indirect, of initiating litigation,
unanticipated changes in the markets in which the Company operates;
the effects of the current macroeconomic climate; 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 2022
and in 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)
June 30, 2023
December 31, 2022
Unaudited
(1)
ASSETS
Cash and cash equivalents
$
25,820
$
48,820
Investments - current
131,718
100,918
Accounts and other receivables
2,343
1,235
Prepaid expenses and other current
assets
8,135
9,347
Total current assets
168,016
160,320
Property and equipment, net
252
293
Investments - noncurrent
20,249
17,040
Long-term deposits
6,304
4,324
Deferred tax assets
7,217
7,217
Other assets
455
916
TOTAL ASSETS
$
202,493
$
190,110
LIABILITIES
Accounts payable
$
54
$
86
Accrued compensation
1,306
2,029
Deferred revenue - current
4,766
4,766
Other current liabilities
15,734
12,465
Total current liabilities
21,860
19,346
Deferred revenue - noncurrent
10,250
12,629
Other long-term liabilities
347
435
Total liabilities
32,457
32,410
STOCKHOLDERS’ EQUITY
170,036
157,700
TOTAL LIABILITIES & STOCKHOLDERS’
EQUITY
$
202,493
$
190,110
(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 June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenues:
Royalty and license
$
6,918
$
7,918
$
13,927
$
15,148
Development, services, and other
65
65
130
143
Total revenues
6,983
7,983
14,057
15,291
Operating expenses:
Sales and marketing
398
218
494
704
Research and development
99
355
229
868
General and administrative
3,373
3,304
6,962
6,010
Total operating expenses
3,870
3,877
7,685
7,582
Operating income
3,113
4,106
6,372
7,709
Interest and other income (loss), net
6,759
(6,099
)
13,285
(4,065
)
Income (loss) before benefit from
(provision for) income taxes
9,872
(1,993
)
19,657
3,644
Benefit (provision for) income taxes
(2,844
)
174
(4,351
)
(387
)
Net income (loss)
$
7,028
$
(1,819
)
$
15,306
$
3,257
Basic net income (loss) per share
$
0.22
$
(0.05
)
$
0.47
$
0.10
Shares used in calculating basic net
income (loss) per share
32,583
33,616
32,474
33,638
Diluted net income (loss) per share
$
0.21
$
(0.05
)
$
0.47
$
0.10
Shares used in calculating diluted net
income (loss) per share
32,810
33,616
32,839
33,955
Immersion Corporation
Reconciliation of GAAP Net
Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands, except per
share amounts)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
GAAP net income (loss)
$
7,028
$
(1,819
)
$
15,306
$
3,257
Add: Provision for (benefit from) income
taxes
2,844
(174
)
—
387
Less: Non-GAAP provision for income
taxes
(2,172
)
(52
)
—
(83
)
Add: Stock-based compensation
760
791
1,707
1,932
Add: Restructuring expense
125
—
312
—
Add: Depreciation and amortization of
property and equipment
21
33
42
68
Other nonrecurring charges
481
155
560
248
Non-GAAP net income (loss)
$
9,087
$
(1,066
)
$
17,927
$
5,809
Non-GAAP net income (loss) per diluted
share
$
0.28
$
(0.03
)
$
0.55
$
0.17
Shares used in calculating Non-GAAP net
income (loss) per diluted share
32,810
33,616
32,839
33,955
Immersion Corporation
Reconciliation of GAAP
Operating Expenses to Non-GAAP Operating Expenses
(In thousands)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
GAAP operating expenses
$
3,870
$
3,877
$
7,685
$
7,582
Adjustments to GAAP operating
expenses:
Stock-based compensation expense -
S&M
(97
)
99
2
2
Stock-based compensation expense -
R&D
(1
)
23
73
(81
)
Stock-based compensation expense -
G&A
(662
)
(913
)
(1,782
)
(1,853
)
Restructuring expense
(125
)
—
(312
)
—
Depreciation and amortization expense of
property and equipment
(21
)
(33
)
(42
)
(68
)
Other nonrecurring charges
(481
)
(155
)
(560
)
(248
)
Non-GAAP operating expenses
$
2,483
$
2,898
$
5,064
$
5,334
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230811707006/en/
Investor Contact: J. Michael Dodson Immersion Corporation
408-350-8756 extension 5111 mdodson@immersion.com
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