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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Immersion Corporation Reports Third Quarter 2021 Results

November 3, 2021 GMT

SAN FRANCISCO--(BUSINESS WIRE)--Nov 3, 2021--

Immersion Corporation (NASDAQ: IMMR), the leading developer and provider of technologies for haptics, today reported financial results for the third quarter ended September 30, 2021.

Third Quarter Financial Summary:

  • Total revenues of $7.2 million, compared to $7.6 million in the third quarter of 2020. Royalty and license revenues were $7.1 million, compared to $7.5 million in the third quarter of 2020.

  • GAAP operating expenses of $3.5 million declined 30% from $5.0 million in the third quarter of 2020. Non-GAAP operating expenses of $2.8 million declined 22% from non-GAAP operating expenses of $3.5 million in the third quarter of 2020. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)

  • GAAP net income was $3.8 million, or $0.12 per diluted share, compared to GAAP net income of $2.9 million, or $0.11 per diluted share, in the third quarter of 2020.

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  • Non-GAAP net income was $4.7 million, or $0.15 per diluted share, compared to non-GAAP net income of $4.1 million, or $0.15 per diluted share in the third quarter of 2020.

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

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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 the anticipated impact of the expansion of our channel licensing program, 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)

 

 

September 30,
2021

 

December 31,
2020

 

(Unaudited)

 

(1)

ASSETS

 

 

 

Cash, cash equivalents and short-term marketable securities

$

118,629

 

 

$

59,522

 

Accounts and other receivables

4,171

 

 

2,218

 

Prepaid expenses and other current assets

11,739

 

 

12,610

 

Total current assets

134,539

 

 

74,350

 

Property and equipment, net

220

 

 

209

 

Long-term deposits

11,928

 

 

12,571

 

Other assets

13,836

 

 

9,000

 

TOTAL ASSETS

$

160,523

 

 

$

96,130

 

LIABILITIES

 

 

 

Accounts payable

$

117

 

 

$

149

 

Accrued compensation

729

 

 

1,001

 

Other current liabilities

4,962

 

 

2,457

 

Deferred revenue

4,914

 

 

5,173

 

Total current liabilities

10,722

 

 

8,780

 

Long-term deferred revenue

17,859

 

 

21,334

 

Other long-term liabilities

1,153

 

 

2,035

 

TOTAL LIABILITIES

29,734

 

 

32,149

 

STOCKHOLDERS’ EQUITY

130,789

 

 

63,981

 

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

$

160,523

 

 

$

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
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

Royalty and license

$

7,068

 

 

 

$

7,531

 

 

$

25,017

 

 

 

$

19,306

 

 

Development, services, and other

105

 

 

 

65

 

 

325

 

 

 

215

 

 

Total revenues

7,173

 

 

 

7,596

 

 

25,342

 

 

 

19,521

 

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenues

8

 

 

 

32

 

 

78

 

 

 

138

 

 

Sales and marketing

443

 

 

 

1,096

 

 

2,743

 

 

 

4,067

 

 

Research and development

803

 

 

 

920

 

 

3,442

 

 

 

3,932

 

 

General and administrative

2,246

 

 

 

2,963

 

 

7,106

 

 

 

14,406

 

 

Total costs and expenses

3,500

 

 

 

5,011

 

 

13,369

 

 

 

22,543

 

 

Operating income (loss)

3,673

 

 

 

2,585

 

 

11,973

 

 

 

(3,022

)

 

Interest and other income (loss), net

438

 

 

 

174

 

 

162

 

 

 

334

 

 

Income (loss) before benefit from (provision for) income taxes

4,111

 

 

 

2,759

 

 

12,135

 

 

 

(2,688

)

 

Benefit from (provision for) income taxes

(340

)

 

 

96

 

 

(987

)

 

 

3

 

 

Net income (loss)

$

3,771

 

 

 

$

2,855

 

 

$

11,148

 

 

 

$

(2,685

)

 

Basic net income (loss) per share

$

0.12

 

 

 

$

0.11

 

 

$

0.36

 

 

 

$

(0.09

)

 

Shares used in calculating basic net income (loss) per share

32,474

 

 

 

26,898

 

 

30,693

 

 

 

28,507

 

 

Diluted net income (loss) per share

$

0.12

 

 

 

$

0.11

 

 

$

0.36

 

 

 

$

(0.09

)

 

Shares used in calculating diluted net income (loss) per share

32,612

 

 

 

27,134

 

 

31,065

 

 

 

28,507

 

 

 

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,

 

2021

 

2020

 

2021

 

2020

GAAP net income (loss)

$

3,771

 

 

 

$

2,855

 

 

 

$

11,148

 

 

 

$

(2,685

)

 

Add: Provision for (benefit from) income taxes

340

 

 

 

(96

)

 

 

987

 

 

 

(3

)

 

Less: Non-GAAP provision for income taxes

(95

)

 

 

(56

)

 

 

(139

)

 

 

(47

)

 

Add: Stock-based compensation

415

 

 

 

1,339

 

 

 

1,997

 

 

 

3,433

 

 

Add: Restructuring expense

186

 

 

 

66

 

 

 

612

 

 

 

590

 

 

Add: Depreciation and amortization of property and equipment

25

 

 

 

40

 

 

 

75

 

 

 

1,003

 

 

Add: Other non-recurring charges

$

100

 

 

 

$

 

 

 

$

100

 

 

 

$

 

 

Non-GAAP net income

$

4,742

 

 

 

$

4,148

 

 

 

$

14,780

 

 

 

$

2,291

 

 

Non-GAAP net income per diluted share

$

0.15

 

 

 

$

0.15

 

 

 

$

0.48

 

 

 

$

0.08

 

 

Dilutive shares used in calculating Non-GAAP net income per share

32,612

 

 

 

27,134

 

 

 

31,065

 

 

 

28,507

 

 

 

Immersion Corporation

Disaggregated Revenue Information

(In thousands)

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Fixed fee license revenue

$

1,247

 

 

$

1,243

 

 

$

4,346

 

 

$

3,821

 

Per-unit royalty revenue

5,821

 

 

6,288

 

 

20,671

 

 

15,485

 

Total royalty and license revenue

7,068

 

 

7,531

 

 

25,017

 

 

19,306

 

Development, services, and other revenue

105

 

 

65

 

 

325

 

 

215

 

Total revenue

$

7,173

 

 

$

7,596

 

 

$

25,342

 

 

$

19,521

 

 

Immersion Corporation

Revenue by Line of Business

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Mobility

62

%

 

74

%

 

63

%

 

76

%

Gaming

27

%

 

14

%

 

23

%

 

12

%

Automotive

11

%

 

12

%

 

14

%

 

11

%

Other

%

 

%

 

%

 

1

%

Total

100

%

 

100

%

 

100

%

 

100

%

 

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,

 

2021

 

2020

 

2021

 

2020

GAAP operating expenses

$

3,492

 

 

 

$

4,979

 

 

 

13,291

 

 

 

22,405

 

 

Adjustments to non-GAAP operating expenses:

 

 

 

 

 

 

 

Stock-based compensation expense - S&M

(141

)

 

 

(205

)

 

 

(678

)

 

 

(593

)

 

Stock-based compensation expense - R&D

(118

)

 

 

(233

)

 

 

(653

)

 

 

(653

)

 

Stock-based compensation expense - G&A

(156

)

 

 

(901

)

 

 

(666

)

 

 

(2,187

)

 

Restructuring expense

(186

)

 

 

(66

)

 

 

(612

)

 

 

(590

)

 

Depreciation and amortization of property and equipment

(25

)

 

 

(40

)

 

 

(75

)

 

 

(1,003

)

 

Other non-recurring charges

(100

)

 

 

 

 

 

(100

)

 

 

 

 

Non-GAAP operating expenses

$

2,766

 

 

 

$

3,534

 

 

 

10,507

 

 

 

17,379

 

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211103006104/en/

CONTACT: Investor Contact:

Aaron Akerman

Immersion Corporation

514-987-9800 ext. 5110

aakerman@immersion.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: SOFTWARE INTERNET HARDWARE ELECTRONIC DESIGN AUTOMATION CONSUMER ELECTRONICS TECHNOLOGY SEMICONDUCTOR MOBILE/WIRELESS

SOURCE: Immersion Corporation

Copyright Business Wire 2021.

PUB: 11/03/2021 04:15 PM/DISC: 11/03/2021 04:17 PM

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