Forward-looking Statements
This 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 our expectations for fiscal 2012 revenues to be in the range of $34 to $36 million, and the expectation as to our Adjusted EBITDA for the full year and other statements regarding future growth and our intellectual property.
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, continued disruption in the markets for Immersion’s and its licensees’ products due to the recent earthquake and tsunami in Japan; 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 transitioning to a pure IP licensing model and in monetizing the patent portfolio; the commercial success of applications or devices into which Immersion's technology is licensed; potentially lengthy sales cycles and design processes; unanticipated difficulties and challenges encountered in development efforts; potential restructuring charges; unexpected costs; failure to retain key personnel; potential and actual claims and proceedings, including stockholder litigation; competition; the impact of global economic conditions 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 2011 and its 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 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) | |||||||||
March 31, | December 31, | ||||||||
2012 | 2011 | ||||||||
(Unaudited) | (1) | ||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 8,587 | $ | 7,298 | |||||
Short-term investments | 48,968 | 48,987 | |||||||
Accounts receivable, net | 2,962 | 1,487 | |||||||
Inventories | 531 | 423 | |||||||
Deferred income taxes | 215 | 215 | |||||||
Prepaid expenses and other current assets | 423 | 479 | |||||||
Total current assets | 61,686 | 58,889 | |||||||
Property and equipment, net | 1,624 | 1,737 | |||||||
Intangibles and other assets, net | 14,503 | 14,053 | |||||||
TOTAL ASSETS | $ | 77,813 | $ | 74,679 | |||||
LIABILITIES | |||||||||
Accounts payable | $ | 1,879 | $ | 365 | |||||
Accrued compensation | 1,764 | 2,830 | |||||||
Other current liabilities | 1,915 | 2,054 | |||||||
Deferred revenue and customer advances | 5,996 | 4,120 | |||||||
Total current liabilities | 11,554 | 9,369 | |||||||
Long-term deferred revenue | 12,450 | 13,229 | |||||||
Deferred income tax liabilities | 215 | 215 | |||||||
Other long-term liabilities | 588 | 245 | |||||||
TOTAL LIABILITIES | 24,807 | 23,058 | |||||||
STOCKHOLDERS’ EQUITY | 53,006 | 51,621 | |||||||
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
$ | 77,813 | $ | 74,679 | |||||
(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, | ||||||||||
2012 | 2011 | |||||||||
Revenues: | ||||||||||
Royalty and license | $ | 9,085 | $ | 8,353 | ||||||
Product sales | 272 | 1,001 | ||||||||
Development contracts and other | 334 | 414 | ||||||||
Total revenues | 9,691 | 9,768 | ||||||||
Costs and expenses: | ||||||||||
Cost of revenues (exclusive of amortization and impairment of intangibles shown separately below) |
315 | 474 | ||||||||
Sales and marketing | 1,746 | 1,850 | ||||||||
Research and development | 2,194 | 2,099 | ||||||||
General and administrative | 4,771 | 3,111 | ||||||||
Amortization and impairment of intangibles | 341 | 357 | ||||||||
Total costs and expenses | 9,367 | 7,891 | ||||||||
Operating Income | 324 | 1,877 | ||||||||
Interest and other income | 10 | 62 | ||||||||
Income from continuing operations before provision for income taxes | 334 | 1,939 | ||||||||
Provision for income taxes | (553 | ) | (594 | ) | ||||||
Income (loss) from continuing operations | (219 | ) | 1,345 | |||||||
Discontinued operations: | ||||||||||
Gain on sales of discontinued operations | - | 43 | ||||||||
Net Income (loss) | $ | (219 | ) | $ | 1,388 | |||||
Basic net income (loss) per share | ||||||||||
Continuing operations | $ | (0.01 | ) | $ | 0.05 | |||||
Discontinued operations | - | - | ||||||||
Total | $ | (0.01 | ) | $ | 0.05 | |||||
Shares used in calculating basic net income (loss) per share | 27,941 | 28,249 | ||||||||
Diluted net income (loss) per share | ||||||||||
Continuing operations | $ | (0.01 | ) | $ | 0.05 | |||||
Discontinued operations | - | - | ||||||||
Total | $ | (0.01 | ) | $ | 0.05 | |||||
Shares used in calculating diluted net income (loss) per share | 27,941 | 28,960 | ||||||||
Immersion Corporation | ||||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three Months | ||||||||||
Ended March 31, | ||||||||||
2012 | 2011 | |||||||||
GAAP Net Income (Loss) | $ | (219 | ) | $ | 1,388 | |||||
Interest and other income | (10 | ) | (62 | ) | ||||||
Provision for income taxes | 553 | 594 | ||||||||
Depreciation and amortization | 166 | 246 | ||||||||
Amortization and impairment of intangibles | 341 | 357 | ||||||||
Stock-based compensation | 720 | 784 | ||||||||
Discontinued operations | - | (43 | ) | |||||||
Total adjustments | 1,770 | 1,876 | ||||||||
Adjusted EBITDA | $ | 1,551 | $ | 3,264 |