Exhibit 99.1
Immersion Corporation Reports First Quarter 2008 Financial Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Immersion Corporation (NASDAQ:IMMR), a leading developer and licensor of touch feedback technology, today announced its first quarter 2008 financial results. Revenues were $8.2 million for the quarter ended March 31, 2008 or 27 percent higher when compared to revenues of $6.4 million for the first quarter of 2007.
Net loss for the first quarter was $(2.6) million compared to a net income of $115.8 million for the first quarter of 2007. Net income for the first quarter of 2007 included $134.9 million of litigation conclusions and patent license. Loss per share was $(0.08) for the quarter compared to $3.91 diluted earnings per share for the first quarter of 2007.
As of March 31, 2008, Immersion had cash, cash equivalents, and short-term investments totaling $140.0 million compared to $138.1 million as of December 31, 2007.
“I believe haptics is at a tipping point, fast becoming an imperative for the ideal intuitive user interface,” said Immersion president and CEO Clent Richardson. “I’m pleased and excited to be joining Immersion to take our products and technology to the next level of adoption and proliferation and, in so doing, deliver more value to our shareholders, customers, and end users. We are adding high quality, experienced sales, marketing, and support people to further our plans for international growth and to help our customers around the world take advantage of and quickly implement haptics in their new products.”
Immersion will host a conference call with company management on Thursday, May 1, 2008 from 5:00 to 6:00 p.m. Eastern time to discuss operating results for the first quarter ended March 31, 2008. To listen to the call, dial +1 800.374.2366 approximately five minutes prior to the start of the call and enter confirmation number 29315507. The call will be archived and available for replay until May 8, 2008 by dialing +1 800.642.1687 and entering confirmation number 29315507. The call will also be simulcast on the Internet through Immersion Corporation’s Web site, http://www.immersion.com. An audio replay of the call will be archived and available at www.immersion.com for replay until May 1, 2009.
About Immersion (www.immersion.com)
Founded in 1993, Immersion Corporation is a recognized leader in developing, licensing, and marketing digital touch technology and products. Using Immersion’s advanced touch feedback technology (www.immersion.com/corporate/products/), electronic user interfaces can be made more productive, compelling, entertaining, or safer. Immersion’s technology is deployed across automotive, entertainment, industrial controls, medical training, mobility, and three-dimensional simulation markets. Immersion’s patent portfolio includes over 700 issued or pending patents in the U.S. and other countries.
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 any projections of earnings, revenues, profitability targets or other financial matters; any statements of the plans, strategies, and objectives of management for future operations; any statements regarding consumer or market acceptance of touch feedback products in general; future development of force feedback products; proposed products or services; any statements regarding future economic conditions or performance; and statements of belief or assumptions underlying any of the foregoing. 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 delay in or failure to achieve commercial demand for Immersion’s expanded technology offerings; a delay in or failure to achieve the acceptance of force feedback as a critical user experience in new and existing markets for our business segments; and risks and uncertainties associated with ongoing and prospective litigation.
For a more detailed discussion of these factors and other factors that could cause Immersion’s actual results to vary materially, interested parties should review the risk factors listed in Immersion’s most current Form 10-K, which is 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 and the Immersion logo are trademarks of Immersion Corporation in the U.S. and other countries.
| Immersion Corporation |
| Condensed Consolidated Statements of Operations |
| (In thousands, except per share amounts) |
| (Unaudited) |
| | | | | | |
| | | Three Months |
| | | Ended March 31, |
| | | 2008 | | 2007 |
| | | | | (1) |
| Revenues: | | | | |
| Royalty and license | | $ | 3,461 | | | $ | 2,211 | |
| Product sales | | | 3,851 | | | | 3,590 | |
| Development contracts and other | | | 843 | | | | 613 | |
| Total revenues | | | 8,155 | | | | 6,414 | |
| | | | | |
| Costs and expenses: | | | | |
| Cost of product sales (exclusive of amortization of intangibles shown separately below) | | | | |
| | | 2,086 | | | | 1,543 | |
| Sales and marketing | | | 3,442 | | | | 2,703 | |
| Research and development | | | 3,229 | | | | 2,543 | |
| General and administrative | | | 4,263 | | | | 3,259 | |
| Amortization of intangibles | | | 235 | | | | 254 | |
| Litigation conclusions and patent license | | | - | | | | (134,900 | ) |
| Total costs and expenses | | | 13,255 | | | | (124,598 | ) |
| | | | | |
| Operating income (loss) | | | (5,100 | ) | | | 131,012 | |
| Interest and other income (expense), net | | | 1,507 | | | | (45 | ) |
| | | | | |
| Income (loss) before provision for income taxes | | | (3,593 | ) | | | 130,967 | |
| | | | | |
| Benefit (provision) for income taxes | | | 1,008 | | | | (15,129 | ) |
| | | | | |
| Net income (loss) | | $ | (2,585 | ) | | $ | 115,838 | |
| | | | | |
| Basic net income (loss) per share | | $ | (0.08 | ) | | $ | 4.57 | |
| | | | | |
Shares used in calculating basic net income (loss) per share | | | 30,478 | | | | 25,343 | |
| | | | | |
| Fully diluted net income (loss) per share | | $ | (0.08 | ) | | $ | 3.91 | |
| | | | | |
Shares used in calculating fully diluted net income (loss) per share | | | 30,478 | | | | 29,677 | |
| | | | | |
| (1) Restated to increase income tax provision by $6.6 million |
| Immersion Corporation |
| Condensed Consolidated Balance Sheets |
| (In thousands) |
| | | | | |
| | | March 31, | | December 31, |
| | | 2008 | | 2007 |
| | | (Unaudited) | | (1) |
| ASSETS | | | | | |
| Cash and cash equivalents | | $ | 137,981 | | $ | 86,493 | |
| Short-term investments | | | 2,034 | | | 51,619 | |
| Accounts receivable, net | | | 3,281 | | | 5,494 | |
| Inventories, net | | | 4,042 | | | 3,674 | |
| Deferred income taxes | | | 3,620 | | | 3,351 | |
| Prepaid expenses and other current assets | | | 4,271 | | | 3,036 | |
| Total current assets | | | 155,229 | | | 153,667 | |
| | | | | |
| Property and equipment, net | | | 2,124 | | | 2,112 | |
| Deferred tax assets, net | | | 4,013 | | | 4,031 | |
| Intangibles and other assets, net | | | 8,834 | | | 8,558 | |
| | | | | |
| TOTAL ASSETS | | $ | 170,200 | | $ | 168,368 | |
| | | | | |
| LIABILITIES | | | | |
| Accounts payable | | $ | 2,196 | | $ | 1,657 | |
| Accrued compensation | | | 2,151 | | | 1,828 | |
| Income taxes payable | | | 15 | | | 534 | |
| Other accrued liabilities | | | 2,285 | | | 2,095 | |
| Deferred revenue and customer advances | | | 5,773 | | | 4,478 | |
| Total current liabilities | | | 12,420 | | | 10,592 | |
| | | | | |
| Long-term liabilities and deferred revenue | | | 16,698 | | | 15,989 | |
| TOTAL LIABILITIES | | | 29,118 | | | 26,581 | |
| | | | | |
| STOCKHOLDERS’ EQUITY | | | 141,082 | | | 141,787 | |
| | | | | |
| TOTAL LIABILITIES & | | | | |
| STOCKHOLDERS’ EQUITY | | $ | 170,200 | | $ | 168,368 | |
| | | | | |
| (1) Derived from Immersion’s annual audited consolidated financial statements. |
CONTACT:
Immersion Corporation
Stephen Ambler, +1 408-467-1900
invest@immersion.com
