Posts Record September Quarter Revenue and Seventh Consecutive Quarter of Profitability;
Increases Stock Repurchase Authorization
SAN JOSE, Calif. — (BUSINESS WIRE) — October 30, 2014 — Immersion Corporation (NASDAQ: IMMR), the leading developer and licensor of touch feedback technology, today reported financial results for the third quarter ended September 30, 2014.
Total revenues for the third quarter of 2014 were $12.1 million, an increase of 6% compared to $11.3 million for the third quarter of 2013. Royalty and license revenues of $11.7 million for the third quarter of 2014 were up 7% from the same period last year. Net income for the third quarter of 2014 was $1.1 million, or $0.04 per diluted share. This compares to net income of $599,000, or $0.02 per diluted share, for the third quarter of 2013.
Non-GAAP net income for the third quarter of 2014 was $2.2 million, or $0.08 per diluted share, compared with non-GAAP net income of $1.8 million, or $0.06 per diluted share, for the third quarter of 2013. As of September 30, 2014, Immersion’s cash, cash equivalents, and short-term investments were $63.1 million, compared to $71.1 million as of December 31, 2013. During the September quarter, the Company used $5.0 million to buy back approximately 535,000 shares of its common stock under its stock repurchase program. The Company also announced that its board of directors has increased the authorization for stock repurchases by $30 million.
“We are pleased to report record September quarter revenues that grew 6% year-over-year and our seventh consecutive quarter of profitability. As we close out the year, we expect our overall 2014 revenue to increase by 7% to 14% over the prior year, which results in a projected revenue range of $51 million to $54 million and anticipated 2014 non-GAAP net income of $8 million to $12 million,” said Vic Viegas, chief executive officer of Immersion. “During the third quarter, we made strong headway in strengthening our customer engagements to reflect the increasing value of Immersion haptics, deploying our technology and unique haptic experiences in new flagship products in the mobile market and launching the first commercial tactile mobile advertisement for our emerging content business. We remain extremely optimistic regarding our long-term growth prospects as our innovations, technology and IP continue to gain momentum.”
Immersion is developing innovative new software solutions to support its expanding market opportunity while continuing to empower premier OEMs with the technology to offer differentiated products and consumer experiences. Recent business developments include:
- The launch of the company’s TouchSense® Engage, its groundbreaking software solution for enhancing mobile video with tactile effects. In conjunction with this announcement, SHOWTIME has launched the first ever haptically-enabled ad trailer, using Immersion's software technology, for its award winning drama series, HOMELAND, available in the SHOWTIME ANYTIME Android app.
- A new agreement with long-time licensee LG Electronics, Inc. for a multi-year worldwide license for Immersion’s TouchSense® software and Basic Haptics IP.
- Extending its license agreement with Samsung, for the use of TouchSense® and Integrator products in smartphones and other mobile devices, to the company’s printing solutions business unit.
Conference Call Information
Immersion will host a conference call with company management on Thursday, October 30, 2014 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the third quarter ended September 30, 2014. To participate on the live call, analysts and investors should dial +1 888-378-0320 (conference ID: 6277733) 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 overcoming 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 over
1,800 issued or pending patents in the U.S. and other countries,
Immersion helps bring the digital universe to life. Hear what we have to