SAN JOSE, Calif. — (BUSINESS WIRE) — May 2, 2013 — Immersion Corporation (NASDAQ: IMMR), the leading developer and licensor of touch feedback technology, today reported financial results for the first quarter ended March 31, 2013.
Total revenues for the first quarter of 2013 were $13.9 million, an increase of 43% compared to $9.7 million for the first quarter of 2012 and Immersion’s highest total ever for a quarter. Royalty and license revenues of $13.6 million for the first quarter of 2013 were up 50% from the same period last year. Net income for the first quarter of 2013 was $2.3 million, or $ 0.08 per share. This compares to a net loss of $(219,000), or $(0.01) per share, for the first quarter of 2012. Adjusted EBITDA for the first quarter of 2013 was $4.0 million, compared to $1.6 million in the first quarter of 2012.
“I am very pleased to report record revenues in the first quarter, which contributed to strong profitability and illustrates the scalability of our licensing business model,” said Vic Viegas, chief executive officer of Immersion. “With our recent successes in securing new or expanded Basic Haptics license agreements with key customers, we are now poised to capture a much larger share of the rapidly expanding worldwide smartphone market, with Basic Haptics licensing acting as a pricing floor for lower cost devices, and our more advanced technology software solutions powering premium smartphones. During the quarter, we launched two new innovative product solutions that expand the value proposition for advanced haptics within mobile devices. We also continue to see meaningful interest for our technology within gaming, automotive, medical and evolving markets.”
“As we indicated mid-quarter, based on our current outlook we expect revenues for 2013 to be in the range of $44 million to $48 million, an increase of between 37% and 49% over last year’s revenues of $32.2 million. Adjusted EBITDA for 2013 is anticipated to be in the range of $12 million to $15 million,” concluded Mr. Viegas.
As of March 31, 2013, Immersion’s cash, cash equivalents, and short-term investments were $64.2 million, compared to $43.5 million as of December 31, 2012.
Corporate Highlights
Recently:
- Immersion entered into a multi-year license agreement with Samsung Electronics Co., Ltd. for its smartphones and other mobile devices.
- Immersion terminated the International Trade Commission’s investigation of HTC Corporation for infringement of certain of Immersion's patents and instead is pursuing its action in the U.S. District Court, enabling it to prosecute its claim against HTC for damages immediately.
- Leading OEMs have adopted Immersion’s TouchSense 3000 solution within flagship mobile devices, including Samsung’s Galaxy S4 smartphone and Note 8.0 tablet, and LG’s Optimus G Pro smartphone.
- Pantech has implemented Immersion’s TouchSense 5000 solution with HD Haptics in the VEGA No. 6 smartphone for the domestic Korea market.
Conference Call Information
Immersion will host a conference call with company management on Thursday, May 02, 2013 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the first quarter ended March 31, 2013. To participate on the live call, analysts and investors should dial +1 877-941-4774 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 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 1,300 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 measures.
Forward-looking Statements
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 the statements of historical fact, are statements that may be deemed forward-looking statements, including, but not limited to, the statements regarding our expectations relating to the scalability of our licensing business model, our expectations relating to capturing a larger share of the rapidly expanding worldwide smartphone market and our expectation that revenues for 2013 will be in the range of $44 million to $48 million and adjusted EBITDA for 2013 will be in the range of $12 million to $15 million.
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, potential and actual claims and proceedings, including litigation involving Immersion’s intellectual property; delay in or failure to achieve commercial demand for Immersion's or its licensees’ products; a delay in or failure to achieve the acceptance of force feedback as a critical user experience; unexpected difficulties in monetizing the patent portfolio; the commercial success of applications or devices into which Immersion's technology is licensed; potentially lengthy sales cycles and design processes; unanticipated difficulties and challenges encountered in development efforts; unexpected costs; failure to retain key personnel; competition; the inherently uncertain nature of litigation which makes future outcomes and timing difficult to predict; the impact of global economic conditions and other factors. Many of these risks and uncertainties are beyond the control of Immersion.
For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in Immersion's Annual Report on Form 10-K for 2012 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, TouchSense, HD Haptics and Reverb are trademarks of Immersion Corporation in the United States and other countries. All other trademarks are the property of their respective owners.
The use of the word "partner" or "partnership" in this press release does not mean a legal partner or legal partnership.
(IMMR – C)
| Immersion Corporation | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| (Unaudited) | (1) | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 30,223 | $ | 4,558 | ||||
| Short-term investments | 33,994 | 38,988 | ||||||
| Accounts receivable, net | 3,342 | 1,878 | ||||||
| Inventories | 76 | 141 | ||||||
| Deferred income taxes | 165 | 165 | ||||||
| Prepaid expenses and other current assets | 523 | 706 | ||||||
| Total current assets | 68,323 | 46,436 | ||||||
| Property and equipment, net | 1,193 | 1,281 | ||||||
| Intangibles and other assets, net | 16,271 | 15,725 | ||||||
| TOTAL ASSETS | $ | 85,787 | $ | 63,442 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 1,599 | $ | 338 | ||||
| Accrued compensation | 1,756 | 2,502 | ||||||
| Other current liabilities | 3,246 | 1,022 | ||||||
| Deferred revenue and customer advances | 19,139 | 3,934 | ||||||
| Total current liabilities | 25,740 | 7,796 | ||||||
| Long-term deferred revenue | 9,581 | 10,221 | ||||||
| Deferred income tax liabilities | 165 | 165 | ||||||
| Other long-term liabilities | 598 | 619 | ||||||
| TOTAL LIABILITIES | 36,084 | 18,801 | ||||||
| STOCKHOLDERS’ EQUITY | 49,703 | 44,641 | ||||||
| TOTAL LIABILITIES & | ||||||||
| STOCKHOLDERS’ EQUITY | $ | 85,787 | $ | 63,442 | ||||
| (1) Derived from Immersion’s annual audited consolidated financial statements. | ||||||||
| Immersion Corporation | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||
| (In thousands, except per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months | |||||||||||
| Ended March 31, | |||||||||||
| 2013 | 2012 | ||||||||||
| Revenues: | |||||||||||
| Royalty and license | $ | 13,649 | $ | 9,085 | |||||||
| Product sales | 19 | 272 | |||||||||
| Development contracts and other | 192 | 334 | |||||||||
| Total revenues | 13,860 | 9,691 | |||||||||
| Costs and expenses: | |||||||||||
| Cost of revenues (exclusive of amortization and | |||||||||||
| abandonment of intangibles shown separately below) | 148 | 315 | |||||||||
| Sales and marketing | 2,247 | 1,746 | |||||||||
| Research and development | 2,573 | 2,194 | |||||||||
| General and administrative | 6,138 | 4,771 | |||||||||
| Amortization and abandonment of intangibles | 494 | 341 | |||||||||
| Total costs and expenses | 11,600 | 9,367 | |||||||||
| Operating Income | 2,260 | 324 | |||||||||
| Interest and other income | 10 | 10 | |||||||||
| Income before provision for income taxes | 2,270 | 334 | |||||||||
| Provision for income taxes | (17 | ) | (553 | ) | |||||||
| Net Income (loss) | $ | 2,253 | $ | (219 | ) | ||||||
| Basic net income (loss) per share | $ | 0.08 | $ | (0.01 | ) | ||||||
| Shares used in calculating basic net income (loss) per share | 27,424 | 27,941 | |||||||||
| Diluted net income (loss) per share | $ | 0.08 | $ | (0.01 | ) | ||||||
| Shares used in calculating diluted net income (loss) per share | 28,294 | 27,941 | |||||||||
| Immersion Corporation | ||||||||
| Reconciliation of GAAP Net Income to Adjusted EBITDA | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
| Ended March 31, | ||||||||
| 2013 | 2012 | |||||||
| GAAP Net Income (Loss) | $ | 2,253 | $ | (219 | ) | |||
| Interest and other income | (10 | ) | (10 | ) | ||||
| Provision for income taxes | 17 | 553 | ||||||
| Depreciation and amortization | 164 | 166 | ||||||
| Amortization and abandonment of intangibles | 494 | 341 | ||||||
| Stock-based compensation | 1,037 | 720 | ||||||
| Total adjustments | 1,702 | 1,770 | ||||||
| Adjusted EBITDA | $ | 3,955 | $ | 1,551 | ||||
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