Immersion Corporation Reports First Quarter 2024 Results
Immersion , a haptics technology company, reported strong financial results for the first quarter of 2024. The company saw a significant increase in total revenues, GAAP net income, and non-GAAP net income compared to the same period in 2023. Total cash and short-term investments also experienced a notable increase. The CEO highlighted the positive start to the year and emphasized the company's focus on protecting and monetizing its intellectual property to drive long-term shareholder value.
Significant increase in total revenues, GAAP net income, and non-GAAP net income compared to the first quarter of 2023.
Total cash and short-term investments increased by $18.7 million.
Company operating from a position of strength with a strong balance sheet.
Unlikely that the first quarter's outsized revenue performance will be repeated in the future.
Future quarterly dividends subject to review and approval by the Board of Directors, with the possibility of adjustment or withdrawal.
GAAP Net Income of
Non-GAAP Net Income of
Increased Total Cash and Short-term Investments By
First Quarter Financial Summary1:
-
Total revenues of
$43.8 million $7.1 million -
GAAP net income was
$18.7 million $0.59 $8.3 million $0.25 -
GAAP operating expenses of
$27.2 million $3.8 million $26.1 million $2.6 million -
Non-GAAP net income was
$19.8 million $0.63 $9.5 million $0.29 -
Total cash and short-term investments were
$179.1 million $18.7 million $160.4 million
(1) |
Non-GAAP measures are not calculated in accordance with GAAP as described in this press release. A reconciliation of each Non-GAAP measure to the most applicable GAAP measure is included in this press release. |
“I am pleased with the strong start to 2024,” said Eric Singer, Chairman and CEO. “While it is unlikely that the first quarter’s outsized revenue performance will be repeated in the future, Immersion is operating from a position of strength as we work to protect and monetize our intellectual property. Our strong balance sheet also provides us with considerable optionality as we seek to drive long-term shareholder value.”
The seventh quarterly dividend, in the amount of
About Immersion
Immersion Corporation (Nasdaq: IMMR) is a leading innovator of touch feedback technology, also known as haptics. The company invents, accelerates, and scales haptic experiences by providing technology solutions for mobile, automotive, gaming, and consumer electronics. Haptic technology creates immersive and realistic experiences that enhance digital interactions by engaging users’ sense of touch. Learn more at www.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 certain non-GAAP information, such as Non-GAAP net income, Non-GAAP operating expenses and Non-GAAP net income per diluted share because it is useful in understanding the company’s performance as it excludes certain non-cash expenses like stock-based compensation expense and other special charges, depreciation and restructuring costs, 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. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release.
Forward-looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The forward-looking statements involve risks and uncertainties. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “places,” “estimates,” and other similar expressions. However, these words are not the only way we identify forward-looking statements. Examples of forward-looking statements include any expectations, projections, or other characterizations of future events, or circumstances, including but not limited to statements about the Company’s focus on protecting its intellectual property, either through the execution of new or renewal license agreements or by proactive enforcement continuing to pursue thoughtful capital allocation to increase long-term shareholder value, and the timing of any dividend payments.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results could differ materially from those projected in the forward-looking statements, therefore we caution you not to place undue reliance on these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the inability to predict the outcome of any litigation, the costs associated with any litigation and the risks related to our business, both direct and indirect, of initiating litigation, unanticipated changes in the markets in which the Company operates; the effects of the current macroeconomic climate; delay in or failure to achieve adoption of or commercial demand for the Company’s products or third party products incorporating the Company’s technologies; the inability of Immersion to renew existing licensing arrangements, or enter into new licensing arrangements on favorable terms; the loss of a major customer; the ability of Immersion to protect and enforce its intellectual property rights and other factors. 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 2023 as filed with the
Immersion, and the Immersion logo are trademarks of Immersion Corporation in
(IMMR – C)
Immersion Corporation Condensed Consolidated Balance Sheets (In thousands) |
|||||||
|
|
March 31, 2024 |
|
|
|
December 31, 2023 |
|
|
|
Unaudited |
|
|
|
(1) |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
91,097 |
|
|
$ |
56,071 |
|
Investments - current |
|
88,010 |
|
|
|
104,291 |
|
Accounts and other receivables |
|
6,028 |
|
|
|
2,241 |
|
Prepaid expenses and other current assets |
|
8,701 |
|
|
|
9,847 |
|
Total current assets |
|
193,836 |
|
|
|
172,450 |
|
Property and equipment, net |
|
170 |
|
|
|
211 |
|
Investments - noncurrent |
|
40,958 |
|
|
|
33,350 |
|
Long-term deposits |
|
6,394 |
|
|
|
6,231 |
|
Deferred tax assets |
|
3,343 |
|
|
|
3,343 |
|
Other assets |
|
1 |
|
|
|
146 |
|
TOTAL ASSETS |
$ |
244,702 |
|
|
$ |
215,731 |
|
LIABILITIES |
|
|
|
|
|
|
|
Accounts payable |
$ |
21 |
|
|
$ |
47 |
|
Accrued compensation |
|
3,187 |
|
|
|
3,127 |
|
Deferred revenue - current |
|
12,314 |
|
|
|
4,239 |
|
Other current liabilities |
|
14,586 |
|
|
|
11,900 |
|
Total current liabilities |
|
30,108 |
|
|
|
19,313 |
|
Deferred revenue - noncurrent |
|
8,213 |
|
|
|
8,390 |
|
Other long-term liabilities |
|
4,925 |
|
|
|
4,926 |
|
Total liabilities |
|
43,246 |
|
|
|
32,629 |
|
STOCKHOLDERS’ EQUITY |
|
201,456 |
|
|
|
183,102 |
|
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
$ |
244,702 |
|
|
$ |
215,731 |
|
(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, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
Royalty and license |
$ |
43,847 |
|
|
$ |
7,009 |
|
Development, services, and other |
|
— |
|
|
|
65 |
|
Total revenues |
|
43,847 |
|
|
|
7,074 |
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
|
1,338 |
|
|
|
96 |
|
Research and development |
|
42 |
|
|
|
130 |
|
General and administrative |
|
25,853 |
|
|
|
3,589 |
|
Total operating expenses |
|
27,233 |
|
|
|
3,815 |
|
Operating income |
|
16,614 |
|
|
|
3,259 |
|
Interest and other income (loss), net |
|
8,106 |
|
|
6,526 |
||
Income before provision for income taxes |
|
24,720 |
|
|
|
9,785 |
|
Provision for income taxes |
|
(6,065 |
) |
|
|
(1,507 |
) |
Net income |
$ |
18,655 |
|
|
$ |
8,278 |
|
Basic net income per share |
$ |
0.60 |
|
|
$ |
0.25 |
|
Shares used in calculating basic net income per share |
|
31,028 |
|
|
|
32,603 |
|
Diluted net income per share |
$ |
0.59 |
|
|
$ |
0.25 |
|
Shares used in calculating diluted net income per share |
|
31,406 |
|
|
|
33,085 |
|
Immersion Corporation Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) (In thousands, except per share amounts) (Unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
GAAP net income |
$ |
18,655 |
|
|
$ |
8,278 |
|
Add: Stock-based compensation |
|
1,077 |
|
|
|
946 |
|
Add: Restructuring expense |
|
31 |
|
|
|
187 |
|
Add: Depreciation and amortization of property and equipment |
|
18 |
|
|
|
21 |
|
Other nonrecurring charges |
|
43 |
|
|
|
79 |
|
Non-GAAP net income |
$ |
19,824 |
|
|
$ |
9,511 |
|
Non-GAAP net income per diluted share |
$ |
0.63 |
|
|
$ |
0.29 |
|
Shares used in calculating Non-GAAP net income per diluted share |
|
31,406 |
|
|
|
33,085 |
|
Immersion Corporation Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (In thousands) (Unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
GAAP operating expenses |
$ |
27,233 |
|
|
$ |
3,815 |
|
Adjustments to GAAP operating expenses: |
|
|
|
|
|
|
|
Stock-based compensation expense - S&M |
|
(148 |
) |
|
|
99 |
|
Stock-based compensation expense - R&D |
|
(1 |
) |
|
|
74 |
|
Stock-based compensation expense - G&A |
|
(928 |
) |
|
|
(1,119 |
) |
Restructuring expense |
|
(31 |
) |
|
|
(187 |
) |
Depreciation and amortization expense of property and equipment |
|
(18 |
) |
|
|
(21 |
) |
Other nonrecurring charges |
|
(43 |
) |
|
|
(79 |
) |
Non-GAAP operating expenses |
$ |
26,064 |
|
|
$ |
2,582 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508916868/en/
Investor Contact:
J. Michael Dodson
Immersion Corporation
mdodson@immersion.com
Source: Immersion Corporation
FAQ
What were Immersion 's total revenues in the first quarter of 2024?
What was Immersion 's GAAP net income in the first quarter of 2024?
What was Immersion 's non-GAAP net income in the first quarter of 2024?
How much did Immersion 's total cash and short-term investments increase by in the first quarter of 2024?
When will Immersion 's seventh quarterly dividend be paid?
