Record Revenue; Strong Future Growth Opportunities
SAN JOSE, Calif. — (BUSINESS WIRE) — October 31, 2013 — Immersion Corporation (NASDAQ: IMMR), the leading developer and licensor of touch feedback technology, today reported financial results for the third quarter ended September 30, 2013.
Quarterly Financial Results
Total revenues for the third quarter of 2013 were $11.3 million, an increase of 59% compared to $7.1 million for the third quarter of 2012. Royalty and license revenues of $11.0 million for the third quarter of 2013 were up 72% from the same period last year. Net income for the third quarter of 2013 was $1.2 million, or $ 0.04 per share. This compares to a net loss of $(3.0 million), or $(0.11) per share, for the third quarter of 2012. Adjusted EBITDA for the third quarter of 2013 was $3.3 million, compared to a loss of $(1.6 million) in the third quarter of 2012.
Business Highlights and Opportunities
In addition to posting strong financial results, Immersion achieved important milestones and continued to position itself to take advantage of strategic opportunities during the quarter, including:
- Entering into a multi-year license agreement with Xiaomi, one of the fastest-growing smartphone makers in China, providing for recurring revenues and covering Immersion’s Basic Haptics IP and select TouchSense® and Integrator software solutions;
- Expanding its license agreement with Samsung to enable Samsung to incorporate Immersion TouchSense technology into the recently-launched GALAXY Gear smartwatch, Samsung’s new wearable companion device that can communicate information to users through tactile notifications and alerts;
- Receiving confirmation that Sony has exercised its option to license Immersion intellectual property for the DUALSHOCK®4 controller included in its soon-to-be-released PlayStation®4 console system; and
- Making ongoing progress on its initiative to bring immersive and engaging touch feedback to mobile media such as advertising and entertainment content by refining its content enablement tools and technology, conducting usability research and user studies, and continuing to meet with potential ecosystem partners.
“We are pleased to post another consecutive quarter of robust year-over-year revenue growth and solid profitability as we generated record revenues for the third quarter period,” said Vic Viegas, chief executive officer of Immersion. “As we work to expand our customer base and global footprint, we achieved a key milestone during the quarter with the signing of our first direct license with a mobile OEM in China, Xiaomi. With the inclusion of our software in the Samsung GALAXY Gear, we established a presence in the emerging wearable device category, and with Sony’s exercise of its option to license our intellectual property for use in the PS4™, we are now well-positioned to continue our licensing success with a new generation of gaming products. We believe the opportunities for haptics will continue to expand in evolving form factors and methods for content consumption, and Immersion continues to explore and innovate ahead of the curve in order to capitalize on the growing role of haptics within the digital lifestyle.”
“As we enter the fourth quarter, we remain on track to achieve record top-line results in 2013. We are narrowing our revenue guidance to the high end of our previous range, and now expect annual revenues to be in the range of $46 million to $48 million, an increase of between 43% and 49% over last year’s revenue of $32.2 million. In addition, we continue to anticipate Adjusted EBITDA for 2013 to be in the range of $12 million to $15 million,” concluded Mr. Viegas.
As of September 30, 2013, Immersion’s cash, cash equivalents, and short-term investments were $64.7 million, compared to $43.5 million as of December 31, 2012.
Conference Call Information
Immersion will host a conference call with company management on Thursday, October 31, 2013 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the third quarter ended September 30, 2013. To participate on the live call, analysts and investors should dial +1-877-941-1427 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
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
1,400 issued or pending patents in the U.S. and other countries,
Immersion helps bring the digital universe to life. Hear what we have to