SAN JOSE, Calif. — (BUSINESS WIRE) — July 30, 2015 — Immersion Corporation (NASDAQ: IMMR), the leading developer and licensor of touch feedback technology, today reported financial results for the second quarter ended June 30, 2015.
Total revenues for the second quarter of 2015 were $16.2 million, an increase of 37% compared to $11.8 million for the second quarter of 2014. Royalty and license revenues of $15.9 million for the second quarter of 2015 were up 37% from the same period last year. Net income for the second quarter of 2015 was $1.6 million, or $0.06 per diluted share. This compares to net income of $169 thousand, or $0.01 per diluted share, for the second quarter of 2014.
Non-GAAP net income for the second quarter of 2015 was $2.8 million, or $0.10 per diluted share, compared with non-GAAP net income of $1.5 million, or $0.05 per diluted share, for the second quarter of 2014. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)
As of June 30, 2015, Immersion’s cash, cash equivalents and short term investments were $71.6 million, up from $57.4 million as of December 31, 2014.
Management Commentary
“We achieved record June quarter results, representing the eleventh quarter in a row that we have delivered record quarterly revenues on a year-over-year basis,” said Vic Viegas, chief executive officer of Immersion. “The quarter also marked an exciting milestone for Immersion, as we announced that over 3 billion devices have gone to market using Immersion haptic technology. We believe the market opportunity for haptics will continue to expand as key market trends such as the need for more personal and meaningful digital interactions, immersive entertainment and the Internet of Things will further drive the adoption of haptics in consumer devices.”
“Based on our current outlook we are narrowing our 2015 revenue guidance to the high-end of the range, and now expect revenues to be $58 million to $60 million, reflecting growth of 10% to 13% over the prior year. Assuming an effective tax rate of up to 78% as a result of certain non-cash transitional tax expenses related to the reorganization of our international operations, Non-GAAP net income for 2015 is anticipated to be unchanged, and in the range of $4 million to $8 million,” concluded Mr. Viegas.
Business Highlights
Recent developments reflect broadening penetration of Immersion’s technology within consumer devices, continued traction with mobile OEMs and further momentum within mobile gaming and entertainment content, including:
- Achieved critical mass of more than 3 billion devices enabled with Immersion technology, including tablets, smartphones, wearables, gaming controllers and automotive interfaces.
- A licensing agreement with Kyocera, a worldwide leading supplier of mobile devices. The agreement is a multi-year worldwide license for Immersion's TouchSense® software technology as well as its Basic Haptics IP.
- A renewed licensing agreement with Fujitsu, who launched the ARROWS NX F-04G mobile phone with Immersion TouchSense technology
- A licensing agreement with Gionee, a mobile phone manufacturer out of China, who launched the E8 mobile handset with Immersion TouchSense technology.
- The launch of a new category for entertainment content with LeTV leveraging Immersion’s TouchSense Engage haptics technology. "SPECTRE," featuring Daniel Craig as James Bond, "Hotel Transylvania 2" and "The Expendables 3" premiered as the first movie trailers available with tactile effects in the LeTV App.
- New games created with TouchSense Engage, including the popular fruit slicing mobile game "Fruit Ninja," published by iDreamSky, the largest independent mobile game publisher in China, and an updated, realistic digital re-creation of the popular childhood water ring toss toy, Ringtoss World Tour by NEXON Co., Ltd., a worldwide leader in free-to-play online and mobile games, and leading Southeast Asia internet company, Garena.
Conference Call Information
Immersion will host a conference call with company management on Thursday, July 30, 2015 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the second quarter ended June 30, 2015. To participate on the live call, analysts and investors should dial +1 888-428-9473 (conference ID: 8827883) 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.
About Immersion
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 and videos; restore "mechanical" feel by
providing intuitive and unmistakable confirmation; may improve safety by
reducing distractions while driving; provide realistic touch feedback
when performing robotic medical procedures and training simulations; and
expand usability when audio and visual feedback are ineffective.
Immersion's technology, adopted in more than 3 billion digital devices,
provides haptics in mobile phone and tablets, wearables, automotive,
gaming, medical, and consumer electronics products from world-class
companies. With over 2,000 issued or pending patents in the U.S., China
and other countries, Immersion helps bring the digital universe to life.
Learn more at
www.immersion.com
or
www.touchsense.com .
