UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
November 1, 2012
Date of Report (Date of earliest event reported)
IMMERSION CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware | 000-27969 | 94-3180138 | ||
(State or other jurisdiction of incorporation) |
(Commission file number) |
(I.R.S. Employer Identification No.) | ||
30 Rio Robles, San Jose, CA | 95134 | |||
(Address of principal executive offices) | (Zip Code) |
(408) 467-1900
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2 below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
The information referred to in item 2.02 of this Current Report on Form 8-K and Exhibit 99.01 attached hereto shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 or 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this item and in the accompanying Exhibit 99.01 shall not be deemed to be incorporated by reference into any filing with the Securities and Exchange Commission made by Immersion Corporation (Immersion) whether before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
On November 1, 2012, Immersion issued a press release announcing certain of its financial results for the quarter ended September 30, 2012. The press release is attached to this report as Exhibit 99.01
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. |
Exhibit Title | |
99.01 | Press release dated November 1, 2012. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
IMMERSION CORPORATION | ||||||
Date: November 1, 2012 | By: | /s/ PAUL NORRIS | ||||
Name: Paul Norris | ||||||
Title: Chief Financial Officer |
Exhibit List
Exhibit No. |
Exhibit Title | |
99.01 | Press release dated November 1, 2012. |
Exhibit 99.01
Media Contact:
Edelman
Reagan Crossley
+1 650.762.2955
reagan.crossley@edelman.com
Investor Contact:
The Blueshirt Group
Jennifer Jarman
+1 415.217.5866
jennifer@blueshirtgroup.com
Immersion Corporation Reports Third Quarter 2012 Results
SAN JOSE, Calif., November 1, 2012 -- Immersion Corporation (NASDAQ: IMMR), the leader in touch feedback technology development and licensing, today reported financial results for the third quarter ended September 30, 2012.
Total revenues for the third quarter of 2012 were $7.1 million, an increase of 10% compared with $6.5 million for the third quarter of 2011. Royalty and license revenues of $6.4 million for the third quarter of 2012 were up 8% from the same period last year. Net loss for the third quarter of 2012 was $(3.0) million, or $(0.11) per share. This compares to a net loss of $(1.4) million, or $(0.05) per share, for the third quarter of 2011. Adjusted EBITDA for the third quarter of 2012 was $(1.6) million, as compared to $454 thousand in the third quarter of 2011.
We are pleased to report year-over-year revenue growth in the third quarter, and we continue to see touch feedback become increasingly integral to the mobile user experience, said Immersion CEO Victor Viegas. While our bottom line reflects the timing of legal expenses during the period, we are pleased with the manner and speed with which we are progressing through the ITC process and projected timeline and remain committed to fully monetizing our IP in a way that fairly values our technology. We continue to believe there is potential for Immersion to monetize unrealized opportunity for Basic Haptics in the current fiscal year, and restate our revenue guidance of $32 to $38 million for 2012 with positive Adjusted EBITDA. This forecast is predicated on our existing base business supporting the lower end of the range and the potential for Basic Haptics licensing revenue from litigation settlements and other unlicensed companies providing the upside.
As of September 30, 2012, Immersions cash, cash equivalents, and short-term investments were $47.9 million, compared to $56.3 million as of December 31, 2011. During the third quarter of 2012, the Company used approximately $3.2 million to purchase 581,200 shares of its common stock, resulting in a total of $5.2 million used to purchase 968,488 shares during the year to date.
Corporate Highlights
Recently:
| Docomo launched the MEDIAS TAB UL N-08D Tablet by NEC, which is the first commercial implementation of Immersions HD Reverb software. HD Reverb automatically enhances games, videos and music by monitoring audio output and creating complementary haptic effects in real time. The 7-inch tablet, which also includes Immersions Integrator software, leverages next-generation HD Haptics technology using a high-fidelity piezo actuator combined with Immersions TouchSense® 5000 software to deliver crisp, realistic and nuanced touch effects. |
| Popular casual gaming developer Handy Games incorporated Immersions haptics into six of their apps during the quarter, introducing tactile effects to their millions of Android users. |
Conference Call Information
Immersion will host a conference call with company management on Thursday, November 1, 2012 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss financial results for the third quarter ended September 30, 2012. To participate on the live call, analysts and investors should dial +1 877-941-2068 at least ten minutes prior to the start of the call. A replay of the call will be available until 11:59 p.m. Pacific time on November 8, 2012 by dialing +1 800-406-7325 and entering the passcode 4569142#. A live and archived webcast of the conference call will also be available for 90 days within the investor relations section of Immersions corporate Web site at www.immersion.com.
About Immersion (www.immersion.com)
Founded in 1993, Immersion (NASDAQ: IMMR) is the leading innovator in haptic technology; the companys touch feedback solutions deliver a more compelling sense of the digital world. Using Immersions high-fidelity haptic systems, partners can transform user experiences with unique and customizable touch feedback effects; excite the senses in games, videos and music; restore mechanical feel by providing intuitive and unmistakable confirmation; improve safety by overcoming distractions while driving or performing a medical procedure; and expand usability when audio and visual feedback are ineffective. Immersions TouchSense technology provides haptics in mobile phone, automotive, gaming, medical and consumer electronics products from world-class companies. With over 1,200 issued or pending patents in the U.S. and other countries, Immersion helps bring the digital universe to life. Hear what we have to say at blog.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 because it is useful in understanding the companys performance as it excludes non-cash and other special charges that many investors feel may obscure the companys true operating performance. Likewise, management uses these non-GAAP financial measures to manage and assess the profitability of its business. Investors are encouraged to review the related GAAP financial measures.
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 relating to monetization of Basic Haptics intellectual property, expectations for fiscal 2012 revenues to be in the range of $32 to $38 million, and the expectation as to our Adjusted EBITDA for the full year and other statements regarding future growth and our intellectual property.
Immersions actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with Immersions business, which include, but are not limited to, potential and actual claims and proceedings, including litigation involving Immersions intellectual property; delay in or failure to achieve commercial demand for Immersions 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 Immersions 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; competition; the inherently uncertain nature of litigation which makes future outcomes and timing difficult to predict; 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 Immersions most recent Quarterly Report on Form 10-Q, which is on file with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release reflect Immersions 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, TouchSense, HD Haptics and Reverb 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, 2012 (Unaudited) |
December 31, 2011 (1) |
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ASSETS |
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Cash and cash equivalents |
$ | 13,889 | $ | 7,298 | ||||
Short-term investments |
33,985 | 48,987 | ||||||
Accounts and other receivables, net |
1,402 | 1,487 | ||||||
Inventories |
359 | 423 | ||||||
Deferred income taxes |
215 | 215 | ||||||
Prepaid expenses and other current assets |
773 | 479 | ||||||
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Total current assets |
50,623 | 58,889 | ||||||
Property and equipment, net |
1,426 | 1,737 | ||||||
Intangibles and other assets, net |
15,447 | 14,053 | ||||||
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TOTAL ASSETS |
$ | 67,496 | $ | 74,679 | ||||
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LIABILITIES |
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Accounts payable |
$ | 1,717 | $ | 365 | ||||
Accrued compensation |
2,412 | 2,830 | ||||||
Other current liabilities |
2,478 | 2,054 | ||||||
Deferred revenue and customer advances |
4,651 | 4,120 | ||||||
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Total current liabilities |
11,258 | 9,369 | ||||||
Long-term deferred revenue |
10,999 | 13,229 | ||||||
Deferred income tax liabilities |
215 | 215 | ||||||
Other long-term liabilities |
584 | 245 | ||||||
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TOTAL LIABILITIES |
23,056 | 23,058 | ||||||
STOCKHOLDERS EQUITY |
44,440 | 51,621 | ||||||
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TOTAL LIABILITIES & STOCKHOLDERS EQUITY |
$ | 67,496 | $ | 74,679 | ||||
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(1) | Derived from Immersions 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, |
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2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues: |
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Royalty and license |
$ | 6,371 | $ | 5,875 | $ | 21,386 | $ | 20,110 | ||||||||
Product sales |
529 | 345 | 1,145 | 1,892 | ||||||||||||
Development contracts and other |
242 | 275 | 778 | 943 | ||||||||||||
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Total revenues |
7,142 | 6,495 | 23,309 | 22,945 | ||||||||||||
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Costs and expenses: |
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Cost of revenue |
273 | 192 | 802 | 913 | ||||||||||||
Sales and marketing |
1,632 | 1,643 | 5,072 | 5,402 | ||||||||||||
Research and development |
2,088 | 2,183 | 6,406 | 6,525 | ||||||||||||
General and administrative |
5,750 | 3,195 | 14,882 | 9,367 | ||||||||||||
Amortization and impairment of intangibles |
337 | 324 | 1,071 | 1,016 | ||||||||||||
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Total costs and expenses |
10,080 | 7,537 | 28,233 | 23,223 | ||||||||||||
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Operating Loss |
(2,938 | ) | (1,042 | ) | (4,924 | ) | (278 | ) | ||||||||
Interest and other income |
66 | 58 | 144 | 172 | ||||||||||||
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Loss from continuing operations before provision for income taxes |
(2,872 | ) | (984 | ) | (4,780 | ) | (106 | ) | ||||||||
Provision for income taxes |
(118 | ) | (428 | ) | (737 | ) | (1,289 | ) | ||||||||
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Loss from continuing operations |
(2,990 | ) | (1,412 | ) | (5,517 | ) | (1,395 | ) | ||||||||
Discontinued operations: |
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Gain on sales of discontinued operations |
| | 153 | 61 | ||||||||||||
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Net Loss |
$ | (2,990 | ) | $ | (1,412 | ) | $ | (5,364 | ) | $ | (1,334 | ) | ||||
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Basic and diluted net loss per share |
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Continuing operations |
$ | (0.11 | ) | $ | (0.05 | ) | $ | (0.20 | ) | $ | (0.05 | ) | ||||
Discontinued operations |
$ | 0.00 | $ | 0.00 | $ | 0.01 | $ | 0.00 | ||||||||
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Total |
$ | (0.11 | ) | $ | (0.05 | ) | $ | (0.19 | ) | $ | (0.05 | ) | ||||
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Shares used in calculating basic and diluted net loss per share |
27,658 | 28,918 | 27,885 | 28,595 | ||||||||||||
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Immersion Corporation
Reconciliation of GAAP Net Income to Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2012 | 2011 | 2012 | 2011 | |||||||||||||
GAAP Net Loss |
$ | (2,990 | ) | $ | (1,412 | ) | $ | (5,364 | ) | $ | (1,334 | ) | ||||
Interest and other income |
(66 | ) | (58 | ) | (144 | ) | (172 | ) | ||||||||
Provision for income taxes |
118 | 428 | 737 | 1,289 | ||||||||||||
Depreciation and amortization |
163 | 232 | 490 | 717 | ||||||||||||
Amortization and impairment of intangibles |
337 | 324 | 1,071 | 1,016 | ||||||||||||
Stock-based compensation |
808 | 940 | 2,346 | 2,705 | ||||||||||||
Discontinued operations |
| | (153 | ) | (61 | ) | ||||||||||
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Total adjustments |
1,360 | 1,866 | 4,347 | 5,494 | ||||||||||||
Adjusted EBITDA |
$ | (1,630 | ) | $ | 454 | $ | (1,017 | ) | $ | 4,160 | ||||||
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