Revenues for the third quarter of fiscal 2008 were $10.1 million, an increase of approximately 3% over revenues of $9.8 million for the third quarter of 2007. Net loss for the third quarter, which included a one-time charge of $20.75 million related to the settlement of Immersion’s litigation with Microsoft, was $(32.3) million, or $(1.10) per share. Excluding the one-time charge, and tax effects of $7.3 million, net loss for the third quarter was $(4.3) million, or $(0.15) per share. This compares to net income of $493,000, or $0.02 per diluted share, for the third quarter of 2007.
“Immersion’s revenue of $10.1 million was not only the highest revenue total in our history, but also the first time that quarterly revenue has exceeded the $10 million mark,” said Immersion president and CEO Clent Richardson. “Results for the touch side of our business were highlighted by strong adoption of our solutions in high-volume mobile phones, while international sales for our medical line of business were robust. We settled two important legal disputes during the quarter, allowing management to focus its time and energy on execution. In short, while we are not satisfied with our growth rate or bottom-line results, Immersion demonstrated solid execution and performance amidst the turbulent macroeconomic environment.”
As of September 30, 2008, Immersion had cash, cash equivalents, and short-term investments totaling $119.1 million, compared to $129.4 million as of June 30, 2008. During the quarter, Immersion bought back $7.2 million of its own stock.
“While we are mindful of the current economic climate, Immersion’s extremely strong balance sheet and the magnitude of the global opportunities to leverage the world’s best IP portfolio of haptics technology provides us with confidence in our growth initiatives,” concluded Richardson.
Conference Call Information
Immersion will host a conference call with company management on Thursday, October 30, 2008 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the third quarter ended September 30, 2008. To participate on the live call, analysts and investors should dial +1 800.218.0713 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 7, 2008 by dialing +1 800.405.2236 and entering the passcode 11120928#. A live and archived webcast of the conference call will also be available for one year within the investor relations section of Immersion’s corporate Web site at www.immersion.com.
About Immersion ( www.immersion.com)
Founded in 1993, Immersion Corporation is the recognized leader in
developing, licensing, and marketing digital touch technology and
products. Using Immersion's advanced
feedback technology (
electronic user interfaces are more compelling, entertaining, and in
many applications, safer and more productive. Immersion's technology has
helped manufacturers develop innovative and creative solutions for
products such as hundreds of video games and leading video console
gaming systems, medical training simulators installed around the world,
driver controls for automotive manufacturers, and mobile phones, such as
those from LG and Samsung. Immersion's patent portfolio includes over
700 issued or pending patents in the U.S. and other countries.