SAN JOSE, Calif. — (BUSINESS WIRE) — May 1, 2014 — Immersion Corporation (NASDAQ: IMMR), the leading developer and licensor of touch feedback technology, today reported financial results for the first quarter ended March 31, 2014.
Results for the three months ended March 31, 2014
Total revenues for the first quarter of 2014 were $15.4 million, an increase of 11% compared to $13.9 million for the first quarter of 2013. Royalty and license revenues of $15.2 million for the first quarter of 2014 were up 11% from the same period last year. Net income for the first quarter of 2014 was $1.9 million, or $0.06 per diluted share. This compares to net income of $1.7 million, or $0.06 per diluted share, for the first quarter of 2013.
Non-GAAP net income for the first quarter of fiscal 2014 was $3.4 million, or $0.12 per diluted share, compared with non-GAAP net income of $2.7 million, or $0.10 per diluted share, for the first quarter of fiscal 2013. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)
As of March 31, 2014, Immersion's cash, cash equivalents, and short-term investments were $81.3 million, compared to $71.1 million as of December 31, 2013. During the March quarter, the Company used $6.9 million to buy back approximately 0.6 million shares of its common stock under its stock repurchase program.
We are very pleased to report record revenues during the first quarter, which contributed to strong profitability, said Vic Viegas, chief executive officer of Immersion. During the period, our innovative TouchSense solutions were featured in some of the mobile industrys most popular new smartphone and wearable devices. In addition, we continued to make great progress on our initiatives in new areas such as wearables and mobile content, positioning Immersion to capitalize on exciting market opportunities and a growing market awareness that Immersions touch technologies can bring richness and realism to advanced user interfaces.
"As we indicated heading into the new calendar year, based on our current outlook we expect revenues for 2014 to be in the range of $54 million to $62 million, an increase of between 14% and 31% over the prior year. Non-GAAP net income for 2014 is anticipated to be in the range of $8 million to $15 million," concluded Mr. Viegas.
Recent business highlights that reinforce the value of Immersion haptic technology within key markets include:
- Samsungs adoption of innovative new Immersion software in its most important and strategic product launches. In its flagship Galaxy S5 smartphone, Samsung included Immersion TouchSense software as well as Tactile Assist, a new haptic accessibility feature enabling consumers with disabilities to enjoy visual and audio content enhanced with tactile effects. Additionally, Samsung incorporated custom versions of TouchSense into its groundbreaking Gear 2 and Gear Fit wearable devices.
- Immersions unveiling new tools, technologies and user experience concepts at Mobile World Congress, illustrating how tactile technology enhances next-generation mobile and wearable devices by adding realistic and engaging touch experiences to user-created video, ads and entertainment, wearables, mobile user interfaces, gaming and more.
- Immersions entry into its first content and media evaluation and testing agreement with an advertising technology platform partner who will integrate Immersion enablement tools into its software environment and evaluate the performance of haptically-enhanced ads.
Conference Call Information
Immersion will host a conference call with company management on Thursday, May 1, 2014 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the first quarter ended March 31, 2014. To participate on the live call, analysts and investors should dial +1 877-941-1427 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 Immersions 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
1,600 issued or pending patents in the U.S. and other countries,
Immersion helps bring the digital universe to life. Hear what we have to