Immersion will host a conference call with company management on Thursday, February 26, 2015 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the third quarter ended December 31, 2014. To participate on the live call, analysts and investors should dial +1 888-427-9419 (conference ID: 8533089) at least ten minutes prior to the start of the call. 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 reducing distractions while driving; provide realistic touch feedback when performing robotic medical procedures and training simulations; 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 approximately 1,900 issued or pending patents in the U.S., China 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, such as Non-GAAP Net Income 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 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 statement regarding positioning Immersion to capitalize on exciting market opportunities and a growing market awareness that Immersion’s touch technologies can bring richness and realism to advanced user interfaces in a wide variety of emerging industries and our expectation that revenues for 2015 will be in the range of $56 million to $60 million and non-GAAP net income for 2015 will be in the range of $4 million to $8 million.
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 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; 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, TouchSense TS3000, and TouchSense Engage are trademarks or registered 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) | |||||||
| December 31, | December 31, | ||||||
| 2014 | 2013 | ||||||
| (Unaudited) | (1) | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 14,380 | $ | 14,136 | |||
| Short-term investments | 42,981 | 56,976 | |||||
| Accounts and other receivables, net | 3,021 | 598 | |||||
| Deferred income taxes | 9,377 | 7,784 | |||||
| Prepaid expenses and other current assets | 845 | 690 | |||||
| Total current assets | 70,604 | 80,184 | |||||
| Property and equipment, net | 1,207 | 944 | |||||
| Deferred income tax assets | 25,419 | 29,066 | |||||
| Intangibles and other assets, net | 291 | 381 | |||||
| TOTAL ASSETS | $ | 97,521 | $ | 110,575 | |||
| LIABILITIES | |||||||
| Accounts payable | $ | 669 | $ | 682 | |||
| Accrued compensation | 1,906 | 4,680 | |||||
| Other current liabilities | 2,225 | 1,653 | |||||
| Deferred revenue | 7,779 | 8,920 | |||||
| Total current liabilities | 12,579 | 15,935 | |||||
| Long-term deferred revenue | 7,827 | 13,441 | |||||
| Other long-term liabilities | 512 | 528 | |||||
| TOTAL LIABILITIES | 20,918 | 29,904 | |||||
| STOCKHOLDERS’ EQUITY | 76,603 | 80,671 | |||||
|
TOTAL LIABILITIES & |
|||||||
| STOCKHOLDERS’ EQUITY | $ | 97,521 | $ | 110,575 | |||
| (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 | Twelve Months | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (1) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Royalty and license | $ | 13,331 | $ | 11,574 | $ | 51,804 | $ | 46,154 | ||||||||
| Product sales | 0 | 61 | 0 | 105 | ||||||||||||
| Development, services, and other | 288 | 432 | 1,133 | 1,211 | ||||||||||||
| Total revenues | 13,619 | 12,067 | 52,937 | 47,470 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of revenues | 135 | 76 | 460 | 462 | ||||||||||||
| Sales and marketing | 3,258 | 2,646 | 10,896 | 9,338 | ||||||||||||
| Research and development | 3,011 | 3,007 | 11,793 | 10,883 | ||||||||||||
| General and administrative | 6,009 | 5,671 | 23,754 | 23,104 | ||||||||||||
| Amortization of intangibles | 12 | 19 | 67 | 79 | ||||||||||||
| Total costs and expenses | 12,425 | 11,419 | 46,970 | 43,866 | ||||||||||||
| Operating Income | 1,194 | 648 | 5,967 | 3,604 | ||||||||||||
| Interest and other income | 245 | (12 | ) | 352 | 68 | |||||||||||
| Income from continuing operations before provision for income taxes | 1,439 | 636 | 6,319 | 3,672 | ||||||||||||
| Benefit (provision) for income taxes | (422 | ) | 36,767 | (2,196 | ) | 36,483 | ||||||||||
| Net Income | $ | 1,017 | $ | 37,403 | $ | 4,123 | $ | 40,155 | ||||||||
| Basic net income per share | $ | 0.04 | $ | 1.31 | $ | 0.15 | $ | 1.42 | ||||||||
| Shares used in calculating basic net income per share | 27,733 | 28,614 | 28,246 | 28,190 | ||||||||||||
| Diluted net income per share | $ | 0.04 | $ | 1.26 | $ | 0.14 | $ | 1.37 | ||||||||
| Shares used in calculating diluted net income per share | 28,430 | 29,675 | 29,144 | 29,338 | ||||||||||||
| (1) Derived from Immersion’s annual audited consolidated financial statements. | ||||||||||||||||
| Immersion Corporation | ||||||||||||
| Reconciliation of GAAP Net Income to Adjusted EBITDA | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months | Twelve Months | |||||||||||
| Ended December 31, | Ended December 31, | |||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||
| GAAP Net Income | $ | 1,017 | $ | 37,403 | $ | 4,123 | $ | 40,155 | ||||
| Stock-based compensation | 1,237 | 1,206 | 5,295 | 4,644 | ||||||||
| Non-GAAP Net Income | $ | 2,254 | $ | 38,609 | $ | 9,418 | $ | 44,799 | ||||
| Non-GAAP Earnings Per Share | $ | 0.08 | $ | 1.30 | $ | 0.32 | $ | 1.53 | ||||
| Shares used in calculating Non-GAAP Earnings per Share | 28,430 | 29,675 | 29,144 | 29,338 | ||||||||
