- Record Revenues of $85.4 million
- 31% Decrease in Operating Expenses
- Upwardly Revised Annual Revenue Guidance of $108 million to $118 million
SAN JOSE, Calif. — (BUSINESS WIRE) — May 10, 2018 — Immersion Corporation (NASDAQ: IMMR), the leading developer and licensor of touch feedback technology, today reported financial results for the first quarter ended March 31, 2018.
Effective January 1, 2018, the company adopted a new revenue recognition standard (“ASC 606”), which impacted the company’s recognition of revenue from certain of its fixed-fee and per-unit license agreements. The company adopted ASC 606 using the modified retrospective method, which means that the total amount of revenue reported for first quarter 2017 has not been revised in the current financial statements. In the interest of comparability during the transition year to ASC 606, the company has provided revenue, net income and earnings per share information for the first quarter of 2018 in accordance with both ASC 606 and revenue recognition rules in effect prior to the adoption of ASC 606 (“ASC 605”).
First Quarter 2018 Financial Highlights
Total revenues for the first quarter of 2018 were a record $85.4 million. Royalty and license revenues for the first quarter of 2018 were $85.3 million.
Net income for the first quarter of 2018 was $69.9 million, or $2.29 per diluted share.
Non-GAAP net income for the first quarter of 2018 was $71.5 million, or $2.34 per diluted share. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)
As of March 31, 2018, Immersion’s cash, cash equivalents and short-term investments were $139.0 million, compared to $46.5 million as of December 31, 2017.
Management Commentary and Business Outlook
“We are very pleased with the progress Immersion has made over the past six months,” said Carl Schlachte, interim CEO and Chairman of the Board. “While we still have work to do, the company’s restructuring and renewed focus on our underlying fundamentals is showing strong early returns. We remain confident in Immersion’s continued ability to monetize our technology across the trends we see happening in the haptic ecosystem today.”
“With the revenue treatment of certain of our fixed license fee agreements in the first quarter under ASC 606, the success in licensing new customers in the automotive market and the strength of our pipeline as we see it today, we now expect revenue in 2018 to be between $108 million and $118 million. We anticipate Non-GAAP net income of $59 million to $67 million. Our guidance remains independent of possible litigation outcomes,” concluded Mr. Schlachte.
Recent Business Highlights
- Entered into a settlement and license agreement with Apple Inc. for certain Immersion patents.
- Signed a multi-year license agreement with Robert Bosch Car Multimedia GmbH, a subsidiary of Robert Bosch GmbH, providing Bosch with access to Immersion’s patented haptic technology for use in its automotive solutions.
- Signed a license agreement with Panasonic Corp. providing Panasonic with access to Immersion’s patented haptic technology for use in its automotive solutions.
Conference Call and Audio Webcast Information
Immersion will host a conference call with company management on Thursday, May 10, 2018 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the first quarter ended March 31, 2018. To participate on the live call, analysts and investors should dial 800-239-9838 (conference ID: 8259518) 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.
Immersion Corporation (NASDAQ: IMMR) is the leading innovator of touch feedback technology, also known as haptics. The company provides technology solutions for creating immersive and realistic experiences that enhance digital interactions by engaging users’ sense of touch. With more than 2,900 issued or pending patents, Immersion's technology has been adopted in more than 3 billion digital devices, and provides haptics in mobile, automotive, advertising, gaming, medical and consumer electronics products. Immersion is headquartered in San Jose, California with offices worldwide. Learn more at www.immersion.com.
Use of Non-GAAP Financial Measures