Recent Business Highlights
- Immersion launched TouchSense® Premium and TouchSense® Lite, two new products aimed at providing OEMs more options for implementing Immersion's TouchSense® technology in Android mobile devices.
- Immersion signed a new multi-year license agreement with Alps Electric Co. Ltd, a Japanese electronic components manufacturer, for the use of Immersion's intellectual property and know-how in PC touchpads. Under the agreement, Immersion will provide technical expertise and an Immersion API to assist Alps Electric in integrating haptics in its touchpad product module.
- Immersion, together with CRI Middleware, a leading provider of audio and video solutions for the gaming industry, announced the launch of a new tool for adding tactile effects to Android mobile games.
- Immersion and Samsung entered into an amendment pursuant to which Immersion agreed to permit Samsung to exercise the product lifecycle wind-down rights for products that were licensed under Immersion's prior agreement with Samsung for $19 million. The parties also agreed to terminate the arbitration proceedings relating to the product life cycle wind-down rights and to release each other for a variety of matters. Immersion also agreed not to bring any judicial, administrative or other action against Samsung relating to the amendment or patent infringement for a period of time. Immersion has already received the $19 million payment and will recognize it as revenue in the third quarter of 2016.
- Immersion and Lenovo signed a multi-year agreement to enable Lenovo to use Immersion's TouchSense haptic technology for Windows and Android smartphones and tablets.
- Immersion TouchSense® haptic technology was featured at this year's Cannes Lions International Festival of Creativity. The "best of the best" branded communication industry awards event, known for recognizing cutting-edge creative work, partnered with Immersion to showcase the innovative use of the sense of touch.
- Immersion announced TouchSense® Design Cloud, a web environment and the first haptic design toolkit that enables designers and editors to create tactile effects for mobile video easily and efficiently.
- The United States Court of Appeals for the Federal Circuit issued a unanimous ruling reversing a decision by the District Court for the District of Delaware invalidating three of Immersion's patents in a patent infringement lawsuit brought by Immersion against HTC.
Forward-looking StatementsThis 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 the momentum of Immersion's business, the strength of our intellectual property portfolio and our expectation that revenues for 2016 will be in the range of $55 to $65 million generating bottom line results between a net loss of $11 million and net income of $400 thousand, and between a non-GAAP net loss of $8 million and non-GAAP net income of $3 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; ability to track and retain partners, the continued popularity of mobile games, mobile advertisements and wearables; potentially lengthy sales cycles and design processes; unanticipated difficulties and challenges encountered in development efforts; unexpected costs; the fact that certain target markets are still relatively nascent; risks associated with doing business internationally; litigation costs in any current or future litigation; failure to retain key personnel; ability to retain personnel; competition; the inherently uncertain nature of litigation which makes future outcomes and timing difficult to predict; the impact of global economic conditions and foreign currency exchange rates 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 2015 and on Immersion's most recent Quarterly Report on Form 10-Q, which are 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 or registered 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)|
|June 30,2016(Unaudited)||December 31,2015(1)|
|Cash and cash equivalents||$||20,334||$||25,013|
|Accounts receivable, net||1,671||1,213|
|Prepaid expenses and other current assets||2,940||2,790|
|Total current assets||60,877||68,934|
|Property and equipment, net||4,241||4,589|
|Deferred income tax assets||30,754||24,633|
|Prepaid income taxes||4,997||6,995|
|Intangibles and other assets, net||289||264|
|Other current liabilities||3,503||2,999|
|Total current liabilities||15,047||15,185|
|Long-term deferred revenue||1,416||2,516|
|Other long-term liabilities||882||1,099|
|TOTAL LIABILITIES & STOCKHOLDERS' EQUITY||$||101,158||$||105,415|
|(1) Derived from Immersion's annual audited consolidated financial statements.|
|Immersion Corporation Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)|
|Three MonthsEnded June 30,||Six MonthsEnded June 30,|
|Royalty and license||$||7,615||$||15,939||$||21,063||$||31,951|
|Development, services, and other||249||284||424||559|
|Costs and expenses:|
|Cost of revenues||59||115||82||230|
|Sales and marketing||3,397||3,670||7,200||7,880|
|Research and development||2,966||3,499||7,278||7,226|
|General and administrative||11,001||6,719||21,091||15,012|
|Amortization of intangibles||2||3||5||15|
|Total costs and expenses||17,425||14,006||35,656||30,363|
|Operating Income (loss)||(9,561||)||2,217||(14,169||)||2,147|
|Interest and other income (expense)||33||46||245||21|
|Income (loss) from continuing operations before benefit (provision) for income taxes||(9,528||)||2,263||(13,924||)||2,168|
|Benefit (provision) for income taxes||3,323||(668||)||5,024||(632||)|
|Income (loss) from continuing operations||(6,205||)||1,595||(8,900||)||1,536|
|Income from discontinued operations||649||-||649||-|
|Net Income (loss)||$||(5,556||)||$||1,595||$||(8,251||)||$||1,536|
|Basic net income (loss) per share|
|Shares used in calculating basic net income (loss) per share||28,834||28,070||28,663||27,944|
|Diluted net income (loss) per share|
|Shares used in calculating diluted net income (loss) per share||28,834||28,906||28,663||28,779|
|Immersion Corporation Reconciliation of GAAP Net Loss to Non-GAAP Net Income (loss) (In thousands, except per share amounts) (Unaudited)|
|Three MonthsEnded June 30,||Six MonthsEnded June 30,|
|GAAP net income (loss)||$||(5,556||)||$||1,595||$||(8,251||)||$||1,536|
|Add: Stock-based compensation||1,255||1,229||3,589||2,969|
|Add: Provision (benefit) for income taxes||(3,323||)||668||(5,024||)||632|
|Less: Non-GAAP benefit (provision) for income taxes on continuing operations (at 19%)||1,810||(430||)||2,646||(412||)|
|Non-GAAP net income (loss)||$||(5,814||)||$||3,062||$||(7,040||)||$||4,725|
|Non-GAAP earnings (loss) per share||$||(0.20||)||$||0.11||$||(0.25||)||$||0.16|
|Shares used in calculating Non-GAAP earnings (loss) per share||28,834||28,906||28,663||28,779|