EX-99.1 2 immr8-k9302021exhibit991.htm EX-99.1 Document

Exhibit 99.1

Immersion Corporation Reports Third Quarter 2021 Results 


SAN FRANCISCO, November 3, 2021 – Immersion Corporation (NASDAQ: IMMR), the leading developer and provider of technologies for haptics, today reported financial results for the third quarter ended September 30, 2021.
Third Quarter Financial Summary:
•    Total revenues of $7.2 million, compared to $7.6 million in the third quarter of 2020. Royalty and license revenues were $7.1 million, compared to $7.5 million in the third quarter of 2020.

•    GAAP operating expenses of $3.5 million declined 30% from $5.0 million in the third quarter of 2020. Non-GAAP operating expenses of $2.8 million declined 22% from non-GAAP operating expenses of $3.5 million in the third quarter of 2020. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)

•    GAAP net income was $3.8 million, or $0.12 per diluted share, compared to GAAP net income of $2.9 million, or $0.11 per diluted share, in the third quarter of 2020.
•    Non-GAAP net income was $4.7 million, or $0.15 per diluted share, compared to non-GAAP net income of $4.1 million, or $0.15 per diluted share in the third quarter of 2020.


About Immersion

Immersion Corporation (NASDAQ: IMMR) is the 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 this non-GAAP information, such as Non-GAAP net income (loss) and Non-GAAP net income (loss) 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, such as deferred tax assets valuation allowance, 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. The Company has not reconciled the non-GAAP financial measures guidance to the corresponding GAAP measures on a forward-looking basis due to the uncertainty and the potential variability of many of the costs and expenses that may be incurred in the future. Accordingly, reconciliations of the Company’s forward-looking non-GAAP financial measures to the corresponding GAAP measures are not available without unreasonable effort.



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, and include statements regarding the anticipated impact of the expansion of our channel licensing program, and other statements regarding the future prospects and opportunities for the Company’s business.

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 effects of the COVID-19 global pandemic on the Company and its business, and on the business of its suppliers and customers; unanticipated changes in the markets in which the Company operates; the effects of the current macroeconomic climate (especially in light of the ongoing adverse effects of the COVID-19 global pandemic); 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 2020 and its most recent Quarterly Report on Form 10-Q which are on file with the U.S. Securities and Exchange Commission. Any forward-looking statements made by us in this press release speak only as of the date of this press release, and Immersion does not intend to update these forward-looking statements after the date of this press release, except as required by law.

Immersion, and the Immersion logo 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)
 
September 30, 2021December 31, 2020
(Unaudited)(1)
ASSETS
Cash, cash equivalents and short-term marketable securities$118,629 $59,522 
Accounts and other receivables4,171 2,218 
Prepaid expenses and other current assets11,739 12,610 
Total current assets134,539 74,350 
Property and equipment, net220 209 
Long-term deposits11,928 12,571 
Other assets13,836 9,000 
TOTAL ASSETS$160,523 $96,130 
LIABILITIES
Accounts payable$117 $149 
Accrued compensation729 1,001 
Other current liabilities4,962 2,457 
Deferred revenue4,914 5,173 
Total current liabilities10,722 8,780 
Long-term deferred revenue17,859 21,334 
Other long-term liabilities1,153 2,035 
TOTAL LIABILITIES29,734 32,149 
STOCKHOLDERS’ EQUITY130,789 63,981 
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY$160,523 $96,130 
 (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
September 30,		Nine Months Ended
September 30,
2021202020212020
Revenues:
Royalty and license$7,068 $7,531 $25,017 $19,306 
Development, services, and other105 65 325 215 
Total revenues7,173 7,596 25,342 19,521 
Costs and expenses:
Cost of revenues 8 32 78 138 
Sales and marketing443 1,096 2,743 4,067 
Research and development803 920 3,442 3,932 
General and administrative2,246 2,963 7,106 14,406 
Total costs and expenses3,500 5,011 13,369 22,543 
Operating income (loss)3,673 2,585 11,973 (3,022)
Interest and other income (loss), net438 174 162 334 
Income (loss) before benefit from (provision for) income taxes4,111 2,759 12,135 (2,688)
Benefit from (provision for) income taxes(340)96 (987)3 
Net income (loss)$3,771 $2,855 $11,148 $(2,685)
Basic net income (loss) per share$0.12 $0.11 $0.36 $(0.09)
Shares used in calculating basic net income (loss) per share32,474 26,898 30,693 28,507 
Diluted net income (loss) per share$0.12 $0.11 $0.36 $(0.09)
Shares used in calculating diluted net income (loss) per share32,612 27,134 31,065 28,507 



Immersion Corporation
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
GAAP net income (loss)$3,771 $2,855 $11,148 $(2,685)
Add: Provision for (benefit from) income taxes340 (96)987 (3)
Less: Non-GAAP provision for income taxes (95)(56)(139)(47)
Add: Stock-based compensation415 1,339 1,997 3,433 
Add: Restructuring expense186 66 612 590 
Add: Depreciation and amortization of property and equipment25 40 75 1,003 
Add: Other non-recurring charges$100 $— $100 $— 
Non-GAAP net income$4,742 $4,148 $14,780 $2,291 
Non-GAAP net income per diluted share$0.15 $0.15 $0.48 $0.08 
Dilutive shares used in calculating Non-GAAP net income per share32,612 27,134 31,065 28,507 



Immersion Corporation
Disaggregated Revenue Information
(In thousands)
(Unaudited)

Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Fixed fee license revenue$1,247 $1,243 $4,346 $3,821 
Per-unit royalty revenue5,821 6,288 20,671 15,485 
Total royalty and license revenue7,068 7,531 25,017 19,306 
Development, services, and other revenue105 65 325 215 
Total revenue$7,173 $7,596 $25,342 $19,521 







Immersion Corporation
Revenue by Line of Business
(Unaudited)



Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Mobility62 %74 %63 %76 %
Gaming27 %14 %23 %12 %
Automotive11 %12 %14 %11 %
Other— %— %— %1 %
Total100 %100 %100 %100 %






Immersion Corporation
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
(In thousands)
(Unaudited)

Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
GAAP operating expenses$3,492 $4,979 13,291 22,405 
Adjustments to non-GAAP operating expenses:
Stock-based compensation expense - S&M(141)(205)(678)(593)
Stock-based compensation expense - R&D(118)(233)(653)(653)
Stock-based compensation expense - G&A(156)(901)(666)(2,187)
Restructuring expense(186)(66)(612)(590)
Depreciation and amortization of property and equipment(25)(40)(75)(1,003)
Other non-recurring charges(100)— (100)— 
Non-GAAP operating expenses$2,766 $3,534 10,507 17,379 




Investor Contact:
Aaron Akerman
Immersion Corporation
514-987-9800 ext. 5110
aakerman@immersion.com