GAAP Net Income of $2.7 million or $0.08 per
diluted share Non-GAAP Net Income of $4.0 million or $0.12
per diluted share Repurchased 1.5% of shares outstanding
Increased quarterly dividend by 50 percent Announces
filing of Second Patent Lawsuit Against Meta
Immersion Corporation (NASDAQ: IMMR), a leading developer and
provider of technologies for haptics, today reported financial
results for the third quarter ended September 30, 2023.
Third Quarter Financial Summary:
- Total revenues of $9.5 million, compared to $14.0 million in
the third quarter of 2022. Royalty and license revenues were $9.5
million, compared to $13.9 million in the third quarter of
2022.
- GAAP net income was $2.7 million, or $0.08 per diluted share,
compared to GAAP net income of $7.7 million, or $0.23 per diluted
share, in the third quarter of 2022.
- GAAP operating expenses of $3.0 million in the third quarter of
2023, compared to GAAP operating expenses of $3.1 million in the
third quarter of 2022. Non-GAAP operating expenses of $2.0 million
in the third quarter of 2023, compared to Non-GAAP operating
expenses of $2.3 million in the third quarter of 2022. (See
attached table for a reconciliation of GAAP to non-GAAP financial
measures.)
- Non-GAAP net income was $4.0 million, or $0.12 per diluted
share in the third quarter of 2023, compared to non-GAAP net income
of $8.5 million, or $0.25 per diluted share in the third quarter of
2022.
- Repurchased 485,061 shares in the third quarter of 2023 (1.5%
of shares outstanding at September 30, 2023) at an average price of
$6.86 per share.
“It was a productive quarter for Immersion,” said Eric Singer,
Chairman and CEO. “We are continuing our efforts to ensure that our
intellectual property for the AR/VR/metaverse market is recognized
by the recent filing of a second legal complaint in the United
States District Court of the Western District of Texas against Meta
Platforms, Inc. that alleges infringement on five Immersion
patents. Whereas the previous suit is directed to Meta’s Quest 2
and Quest Pro products and their related software, this second suit
is focused on Meta’s recently launched Quest 3 product and related
software. We look forward to prosecuting this case and seeking out
other opportunities to monetize our intellectual property, either
through the execution of licenses or by proactive enforcement.”
“We also are pleased with our financial performance this
quarter. Our robust balance sheet continues to allow for meaningful
shareholder returns, including the decision by our Board of
Directors to increase our quarterly dividend by 50 percent to
$0.045 per share. Our stockholders’ equity increased by $11.7
million year-to-date while providing $6.2 million and $6.4 million,
respectively, in stock repurchases and dividends. We will continue
to pursue thoughtful capital allocation and believe our strong
balance sheet positions us well in the current economic
environment.”
The fifth quarterly dividend will be paid on January 25, 2024 to
shareholders of record on January 14, 2024. 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.
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)
September 30, 2023
December 31, 2022
Unaudited
(1)
ASSETS
Cash and cash equivalents
$
28,701
$
48,820
Investments - current
121,997
100,918
Accounts and other receivables
2,558
1,235
Prepaid expenses and other current
assets
7,589
9,347
Total current assets
160,845
160,320
Property and equipment, net
231
293
Investments - noncurrent
29,855
17,040
Long-term deposits
6,230
4,324
Deferred tax assets
7,217
7,217
Other assets
303
916
TOTAL ASSETS
$
204,681
$
190,110
LIABILITIES
Accounts payable
$
44
$
86
Accrued compensation
616
2,029
Deferred revenue - current
4,731
4,766
Other current liabilities
20,424
12,465
Total current liabilities
25,815
19,346
Deferred revenue - noncurrent
9,088
12,629
Other long-term liabilities
345
435
Total liabilities
35,248
32,410
STOCKHOLDERS’ EQUITY
169,433
157,700
TOTAL LIABILITIES & STOCKHOLDERS’
EQUITY
$
204,681
$
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
September 30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenues:
Royalty and license
$
9,474
$
13,931
$
23,401
$
29,079
Development, services, and other
8
75
138
218
Total revenues
9,482
14,006
23,539
29,297
Operating expenses:
Sales and marketing
367
282
861
990
Research and development
30
254
259
1,118
General and administrative
2,566
2,540
9,528
8,550
Total operating expenses
2,963
3,076
10,648
10,658
Operating income
6,519
10,930
12,891
18,639
Interest and other income (loss), net
(2,554
)
(2,348
)
10,731
(6,413
)
Income before provision for income
taxes
3,965
8,582
23,622
12,226
Provision for income taxes
(1,285
)
(877
)
(5,636
)
(1,264
)
Net income
$
2,680
$
7,705
$
17,986
$
10,962
Basic net income per share
$
0.08
$
0.23
$
0.56
$
0.33
Shares used in calculating basic net
income per share
32,523
33,201
32,254
33,601
Diluted net income per share
$
0.08
$
0.23
$
0.55
$
0.32
Shares used in calculating diluted net
income per share
32,750
33,682
32,586
34,035
Immersion Corporation
Reconciliation of GAAP Net
Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands, except per
share amounts)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended September
30,
2023
2022
2023
2022
GAAP net income
$
2,680
$
7,705
$
17,986
$
10,962
Non-GAAP provision for income taxes
339
—
—
—
Add: Stock-based compensation
820
730
2,526
2,661
Add: Restructuring expense
87
—
399
—
Add: Depreciation and amortization of
property and equipment
14
28
56
95
Other nonrecurring charges
75
46
635
294
Non-GAAP net income
$
4,015
$
8,509
$
21,602
$
14,012
Non-GAAP net income per diluted share
$
0.12
$
0.25
$
0.66
$
0.41
Shares used in calculating Non-GAAP net
income per diluted share
32,750
33,682
32,586
34,035
Immersion Corporation
Reconciliation of GAAP
Operating Expenses to Non-GAAP Operating Expenses
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended September
30,
2023
2022
2023
2022
GAAP operating expenses
$
2,963
$
3,076
$
10,648
$
10,658
Adjustments to GAAP operating
expenses:
Stock-based compensation expense -
S&M
(113
)
(19
)
(110
)
(20
)
Stock-based compensation expense -
R&D
(1
)
(18
)
72
(96
)
Stock-based compensation expense -
G&A
(706
)
(693
)
(2,488
)
(2,545
)
Restructuring expense
(87
)
—
(399
)
—
Depreciation and amortization expense of
property and equipment
(14
)
(28
)
(56
)
(95
)
Other nonrecurring charges
(75
)
(46
)
(635
)
(294
)
Non-GAAP operating expenses
$
1,967
$
2,272
$
7,032
$
7,608
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231113418149/en/
Investor Contact:
J. Michael Dodson Immersion Corporation
mdodson@immersion.com
Grafico Azioni Immersion (NASDAQ:IMMR)
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Grafico Azioni Immersion (NASDAQ:IMMR)
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