SAN JOSE, Calif. — (BUSINESS WIRE) — August 2, 2012 — Immersion Corporation (NASDAQ: IMMR), the leader in developing and licensing touch feedback technology ( http://www.immersion.com/corporate/), today reported financial results for the second quarter ended June 30, 2012.
Total revenues for the second quarter of 2012 were $6.5 million, compared with $6.7 million for the second quarter of 2011. Royalty and license revenues of $5.9 million for the second quarter of 2012 were roughly flat with the same period last year. Net loss for the second quarter of 2012 was $(2.2) million, or $(0.08) per share. This compares to a net loss of $(1.3) million or $(0.05) per share, for the second quarter of 2011. Adjusted EBITDA for the second quarter of 2012 was $(938) thousand, as compared to $442 thousand in the second quarter of 2011.
“We continue to see opportunity for our solutions in our mobile, automotive and gaming lines of business, in particular our success with mobile OEMs in Japan and automotive infotainment system designers. Additionally, we continue to innovate and develop new solutions and IP to further expand and capitalize on the opportunities in front of us,” said Immersion CEO Victor Viegas. “With the proliferation of over 200 million unlicensed Basic Haptics smartphones within the rapidly growing mobile touchscreen device market, our near-term revenue growth is being impacted by the current widespread violation of our intellectual property rights. Once we are successful in our legal efforts to protect our IP, we will then be able to more fully benefit from the growing use of haptics in mobile devices.”
“Based on our current outlook and taking into account potential Basic Haptics royalty agreements and payments from new and/or existing customers prior to the end of the year, we are broadening our expected revenue range for fiscal 2012 to $32 to $38 million, and we continue to expect to achieve positive Adjusted EBITDA for the year,” concluded Mr. Viegas.
As of June 30, 2012, Immersion’s cash, cash equivalents, and short-term investments were $52.4 million, compared to $56.3 million as of December 31, 2011. During the second quarter of 2012, the Company used approximately $2.0 million to purchase 387,288 shares of its common stock.
- Immersion licensee Samsung began shipping the latest release of their flagship smartphone, the Galaxy S III. In addition to using TouchSense® 3000 software, the Galaxy S III also includes Immersion’s Reverb technology. Marketed by Samsung as Auto Haptics, Reverb uses specially designed algorithms to automatically translate audio from an application into haptic effects, creating a more engaging consumer experience.
- Fujitsu announced the world’s first smartphone with Immersion HD Haptics. The Raku-Raku F-12D smartphone uses Immersion’s TouchSense 5000 embedded control software to control a high-fidelity piezo actuator, creating high quality haptic effects to enhance the Raku-Raku’s trademark easy-to-navigate interface.
- Google invited Immersion to participate in their Developer Sandbox at the Google I/O conference. At Google I/O, Immersion demonstrated the latest updates to its Haptic Development Platform, which provides new capabilities and flexibility for third-party developers to incorporate touch feedback into games and applications.
- Daesung incorporated Immersion haptic feedback in its automotive control system design, which was introduced in the 2013 Kia K9 sedan. Daesung selected Immersion's TouchSense force feedback technology to create an adaptive user interface through a rotary knob that dynamically adjusts haptic feedback based on the information available to the user.
- Texas Instruments released two new integrated amplifiers to improve the performance of haptic actuators in mobile devices. The DRV 2665 is the first integrated amplifier for piezo modules that is compliant with Immersion's TouchSense 5000 embedded software, while the DRV 2603 supports devices using Immersion’s TouchSense 3000 embedded software with resonant actuators.
Conference Call Information
Immersion will host a conference call with company management on Thursday, August 2, 2012 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the second quarter ended June 30, 2012. To participate on the live call, analysts and investors should dial +1 877-941-4774 at least ten minutes prior to the start of the call. A replay of the call will be available until 11:59 p.m. Pacific time on August 9, 2012 by dialing +1 800-406-7325 and entering the passcode 4549995#. 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.
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