Founded in 1993, Immersion Corporation is the recognized leader in developing, licensing, and marketing digital touch technology and products. Using Immersion's advanced touch feedback technology ( http://www.immersion.com/corporate/products/), 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.
This press release contains "forward-looking statements" that involve risks and uncertainties as well as assumptions that, if they never materialize or prove incorrect, could cause the results of Immersion Corporation and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements.
All statements, other than statements of historical fact, are statements that may be deemed forward-looking statements, including the statements regarding Touch screens in mobile phones fueling demand for haptics in that market segment; our estimate that in 2008 our TouchSense technology shipped in 15% of touch screen phones worldwide, our expectation that the number will grow to approximately 25 percent by the end of 2009; the pending relocation of our Medical line of business to our headquarters, combined with cost-cutting initiatives, improving the operational and financial performance of that business; our expectation that we will experience the benefits of these actions in the second quarter, with the major payoff to be realized starting in the second half of 2009 and into next year; our belief that semiconductor companies will be an important new revenue stream; and statements of belief or assumptions underlying any of the foregoing. Immersion's actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with Immersion's business, which include but are not limited to delay in or failure to achieve commercial demand for Immersion's expanded technology offerings; a delay in or failure to achieve the acceptance of force feedback as a critical user experience in new and existing markets for our business segments; risks and uncertainties associated with ongoing and prospective litigation; the uncertain impact of the global economic downturn; uncertainties related to whether Immersion’s recent restructuring activities and divestiture will be successful in reducing costs and operational efficiencies; and the level of demand for mobile devices and other products containing semiconductor chips.
For a more detailed discussion of these factors and other factors that could cause Immersion's actual results to vary materially, interested parties should review the risk factors listed in Immersion's most current Annual Report on Form 10-K, which is on file with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release reflect Immersion's beliefs and predictions as of the date of this release. Immersion disclaims any obligation to update these forward-looking statements as a result of financial, business, or any other developments occurring after the date of this release.
Immersion, the Immersion logo, and TouchSense are trademarks of Immersion Corporation in the U.S. and other countries.
|Condensed Consolidated Statements of Operations|
|(In thousands, except per share amounts)|
|Ended March 31,|
|Royalty and license||$||3,781||$||3,461|
|Development contracts and other||446||799|
|Costs and expenses:|
Cost of product sales (exclusive of amortization of intangibles shown separately below)
|Sales and marketing||4,760||3,136|
|Research and development||3,904||3,229|
|General and administrative||4,366||4,263|
|Amortization of intangibles||376||235|
|Total costs and expenses||15,178||12,546|
|Interest and other income||430||1,507|
|Loss from continuing operations before provision for income taxes||(7,770||)||(4,110||)|
|Benefit (provision) for income taxes||(91||)||1,203|
|Loss from continuing operations||(7,861||)||(2,907||)|
|Gain on sales of discontinued operations||167||-|
Gain from discontinued operations, net of provision for income taxes
|Basic and diluted net loss per share|
|Shares used in calculating basic and diluted net loss per share||27,924||30,478|
|(1) Certain reclassifications have been made to the 2008 presentation to conform to the 2009 presentation.|