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Immersion Corporation Q2 2010 Earnings Call Transcript

Additionally, please note that during the call we may discuss non-GAAP financial measures. For each non-GAAP financial measure discussed a presentation of the most directly comparable GAAP financial measure and a reconciliation of the differences between the non-GAAP financial measure discussed and the most directly comparable GAAP financial measure is available in the Investor Relations section of the company's website in the Shareholder Presentation section of the Investor Relation section.

With that said, I'll turn the call over to Chief Executive Officer, Vic Viegas. Vic?

Vic Viegas

Thanks Alex, and thanks everyone for joining us this afternoon. I'll start by providing a high level summary of our performance for the second quarter. Then I'll turn the call over to Shum for a more detailed review of our Q2 results. I will then discuss recent developments and our thoughts on the current business environment before opening up the call to your questions.

Total revenues of $8.5 million for the second quarter were greater than anticipated. We achieved strong growth in our royalty and license revenue, driven by continued traction for our haptic solutions across a variety of end markets.

In addition, we benefited from a reconciliation of certain customers royalty reports in the gaming market and from non-recurring gains in the medical business of approximately $1.1 million.

Net income for the second quarter totaled $180,000 or $0.01 per share, as compared to a net loss of $8.9 million or $0.32 per share in the same period last year. We generated positive adjusted EBITDA of $2 million.

Stepping back for a moment, Immersion has had a busy first half of the year. We completed the independent financial investigation and successfully transitioned the medical products group to CAE, thereby shifting the company to a predominately-licensing model. We have signed new licensees, launched new products, significantly reduced expenses and achieved a very favorable outcome in a piece of litigation in the medical simulation area. We now have a dedicated CEO and CFO in place. With the prior headwinds largely behind this, our ability to focus on execution coupled with a strong value proposition and favorable industry trends are allowing us to post strong growth in our ongoing business.

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