SAN JOSE, Calif. — (BUSINESS WIRE) — November 1, 2012 — Immersion Corporation (NASDAQ: IMMR), the leader in touch feedback technology development and licensing, today reported financial results for the third quarter ended September 30, 2012.
Total revenues for the third quarter of 2012 were $7.1 million, an increase of 10% compared with $6.5 million for the third quarter of 2011. Royalty and license revenues of $6.4 million for the third quarter of 2012 were up 8% from the same period last year. Net loss for the third quarter of 2012 was $(3.0) million, or $(0.11) per share. This compares to a net loss of $(1.4) million, or $(0.05) per share, for the third quarter of 2011. Adjusted EBITDA for the third quarter of 2012 was $(1.6) million, as compared to $454 thousand in the third quarter of 2011.
“We are pleased to report year-over-year revenue growth in the third quarter, and we continue to see touch feedback become increasingly integral to the mobile user experience,” said Immersion CEO Victor Viegas. “While our bottom line reflects the timing of legal expenses during the period, we are pleased with the manner and speed with which we are progressing through the ITC process and projected timeline and remain committed to fully monetizing our IP in a way that fairly values our technology. We continue to believe there is potential for Immersion to monetize unrealized opportunity for Basic Haptics in the current fiscal year, and restate our revenue guidance of $32 to $38 million for 2012 with positive Adjusted EBITDA. This forecast is predicated on our existing base business supporting the lower end of the range and the potential for Basic Haptics licensing revenue from litigation settlements and other unlicensed companies providing the upside.”
As of September 30, 2012, Immersion’s cash, cash equivalents, and short-term investments were $47.9 million, compared to $56.3 million as of December 31, 2011. During the third quarter of 2012, the Company used approximately $3.2 million to purchase 581,200 shares of its common stock, resulting in a total of $5.2 million used to purchase 968,488 shares during the year to date.
- Docomo launched the MEDIAS TAB UL N-08D Tablet by NEC, which is the first commercial implementation of Immersion's HD Reverb software. HD Reverb automatically enhances games, videos and music by monitoring audio output and creating complementary haptic effects in real time. The 7-inch tablet, which also includes Immersion's Integrator software, leverages next-generation HD Haptics technology using a high-fidelity piezo actuator combined with Immersion's TouchSense® 5000 software to deliver crisp, realistic and nuanced touch effects.
- Popular casual gaming developer Handy Games incorporated Immersion's haptics into six of their apps during the quarter, introducing tactile effects to their millions of Android users.
Conference Call Information
Immersion will host a conference call with company management on Thursday, November 1, 2012 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the third quarter ended September 30, 2012. To participate on the live call, analysts and investors should dial +1 877-941-2068 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 November 8, 2012 by dialing +1 800-406-7325 and entering the passcode 4569142#. 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 or performing a medical procedure; 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 1,200 issued or pending patents in the U.S. 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 because it is useful in
understanding the company’s performance as it excludes non-cash 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