Immersion Corporation Reports Fourth Quarter 2021 Results|||

Company Continues Focus on Driving Profitability

SAN FRANCISCO–(BUSINESS WIRE)–$IMMR #haptics–Immersion Corporation (NASDAQ: IMMR), the leading developer and provider of technologies for haptics, today reported financial results for the fourth quarter ended December 31, 2021.

Quaternary Quarter Financial Summary:

  • Total revenues of $ix.7 million, compared to $ten.9 million in the 4th quarter of 2020. Royalty and license revenues were $ix.7 million, compared to $10.ix million in the quaternary quarter of 2020.
  • GAAP operating expenses of $three.ix million declined 31% from $5.7 million in the fourth quarter of 2020. Non-GAAP operating expenses of $three.ii million declined 8% from $3.five one thousand thousand in the fourth quarter of 2020. (See attached table for a reconciliation of GAAP to non-GAAP fiscal measures.)
  • GAAP net income was $1.3 million, or $0.04 per diluted share, compared to GAAP net income of $8.1 meg, or $0.30 per diluted share, in the fourth quarter of 2020. The reduction in GAAP net income was primarily due to the GAAP accounting treatment for income taxes related to our foreign subsidiaries.
  • Non-GAAP net income was $v.viii one thousand thousand, or $0.17 per diluted share, compared to non-GAAP internet income of $8.0 million, or $0.29 per diluted share in the 4th quarter of 2020.
  • Cash, cash equivalents and short-term investments was $137.9 meg as of Dec 31, 2021.

Financial Yr 2021 Financial Summary:

  • Revenues for 2021 were $35.i million, compared to $xxx.5 million in 2020. Royalty and license revenues for 2021 totaled $34.seven one thousand thousand, compared to $30.ii million in 2020.
  • Net income for 2021 was $12.5 meg, or $0.39 per diluted share, compared to net income of $5.4 million, or $0.nineteen per diluted share, for 2020.
  • Non-GAAP net income for 2021 was $twenty.6 million, or $0.65 per diluted share, compared to not-GAAP net loss for 2020 of $ten.3 1000000, or $0.36 per diluted share.

“We are proud of Immersion’s progress in 2021. The business organisation has at present posted solid operating profitability in each of the past two years, even without large onetime litigation settlements. Importantly, our price structure and remainder sheet have been significantly improved. All of this is quite the turnaround from our prior history,” said Francis Jose, CEO. “We are currently focused on pursuing opportunities to bulldoze the adoption of our haptics intellectual belongings in the automotive industry, peculiarly in the burgeoning electrical vehicle market; establishing industry technical standards for haptics in mobility and gaming; and ensuring that our intellectual property is recognized in the emerging AR/VR/metaverse market, either through execution of licenses or by proactive enforcement.”

Contempo Business Highlights:

  • Expanded footprint of licensed automotive Tier 1 suppliers by executing new agreements with Nissha and Duck-il. These new partners strengthen Immersion’s foundation of several licensed Tier ane suppliers which positions us favorably for farther growth in the automotive market.
  • Executed commercial partnership with Wacom, the world’due south leading manufacturer of pen tablets, interactive pen displays, and digital interface solutions.
  • Farther progress in development of industry standards in the MPEG and the Internet Engineering Task Force (IETF). MPEG formally approved the creation of a haptic media type in MPEG media files to enable commercial integration of standard compliant haptic technology in mobile, gaming and XR markets.
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About Immersion

Immersion Corporation (NASDAQ: IMMR) is the leading innovator of impact feedback engineering science, as well known every bit haptics. The visitor 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 affect. Learn more at www.immersion.com.

Apply of Non-GAAP Fiscal Measures

Immersion reports all financial information required in accordance with generally accepted bookkeeping principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult to empathise if limited to reviewing but GAAP financial measures. Immersion discloses this non-GAAP data, such as Non-GAAP cyberspace income and Non-GAAP cyberspace income per diluted share considering it is useful in understanding the company’s performance equally information technology excludes sure non-cash expenses like stock-based compensation expense and other special charges, such as deferred tax assets valuation assart, depreciation and restructuring costs, that many investors feel may obscure the company’due south true operating functioning. Likewise, management uses these not-GAAP financial measures to manage and assess the profitability of its business concern. Non-GAAP fiscal measures should be viewed in addition to, and not equally an alternative for, the Company’s reported results nether GAAP. The non-GAAP fiscal measures are non intended to be considered in isolation or every bit a substitute for results prepared in accordance with GAAP. Such not-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release.

Forrad-looking Statements

This printing release includes frontward-looking statements within the pregnant of Section 27A of the Securities Act of 1933, every bit amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Human action”). The frontward-looking statements involve risks and uncertainties. Forward-looking statements are identified past words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “places,” “estimates,” and other similar expressions. However, these words are not the but mode we place forward-looking statements. Examples of forrad-looking statements include whatsoever expectations, projections, or other characterizations of futurity events, or circumstances, and include statements regarding our focus on pursuing opportunities to drive the adoption of our haptics intellectual property in the automotive industry, especially in the burgeoning electric vehicle market; establishing industry technical standards for haptics in mobility and gaming; and ensuring that our intellectual property is recognized in the emerging AR/VR/metaverse market, either through execution of licenses or by proactive enforcement, and new partners strengthening our foundation of several licensed Tier 1 suppliers which positions us favorably for farther growth in the automotive market.

Because frontwards-looking statements relate to the hereafter, they are bailiwick to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Bodily results could differ materially from those projected in the forward-looking statements, therefore we caution you lot non to place undue reliance on these forward-looking statements. Of import factors that could cause our actual results and fiscal condition to differ materially from those indicated in the forward-looking statements include, amongst others, the following: the effects of the COVID-nineteen global pandemic on the Company and its business, and on the business concern of its suppliers and customers; unanticipated changes in the markets in which the Visitor operates; the effects of the current macroeconomic climate (specially in light of the ongoing adverse effects of the COVID-nineteen global pandemic); delay in or failure to reach adoption of or commercial demand for the Company’s products or tertiary party products incorporating the Visitor’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 client; the ability of Immersion to protect and enforce its intellectual property rights and other factors. For a more detailed word of these factors, and other factors that could cause actual results to vary materially, interested parties should review the take a chance factors listed in Immersion’s Almanac Written report on Grade 10-K for 2020 and its most recent Quarterly Report on Class 10-Q which are on file with the U.S. Securities and Substitution Commission. Any forrard-looking statements made by us in this press release speak only as of the appointment of this press release, and Immersion does non intend to update these forward-looking statements subsequently the date of this press release, except as required by constabulary.

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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 utilise of the word “partner” or “partnership” in this press release does not hateful a legal partner or legal partnership.

(IMMR – C)

Immersion Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

Dec 31,

2021

December 31,

2020

Avails

(1)

(1)

Cash and greenbacks equivalents

$

51,490

$

59,522

Marketable securities

86,431

Accounts and other receivables

1,970

2,218

Prepaid expenses and other current avails

13,432

12,610

Total current avails

153,323

74,350

Property and equipment, net

444

209

Long-term deposits

ix,658

12,571

Other assets, net

12,095

ix,000

Total Avails

$

175,520

$

96,130

LIABILITIES

Accounts payable

$

ii

$

149

Accrued compensation

555

1,001

Other current liabilities

11,247

2,457

Deferred acquirement

4,826

5,173

Total current liabilities

sixteen,630

8,780

Long-term deferred revenue

16,699

21,334

Other long-term liabilities

896

ii,035

TOTAL LIABILITIES

34,225

32,149

STOCKHOLDERS’ Equity

141,295

63,981

Total LIABILITIES & STOCKHOLDERS’ EQUITY

$

175,520

$

96,130

(ane) Derived from Immersion’due south almanac audited consolidated financial statements.

Immersion Corporation

Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

December 31,

Year Concluded

Dec 31,

2021

2020

2021

2020

(1)

(one)

(2)

(2)

Revenues:

Royalty and license

$

nine,672

$

x,870

$

34,689

$

30,176

Development, services, and other

75

65

400

280

Total revenues

9,747

x,935

35,089

thirty,456

Costs and expenses:

Cost of revenues

10

30

88

168

Sales and marketing

498

932

iii,241

four,999

Enquiry and development

708

i,082

4,150

v,014

General and administrative

2,729

3,649

9,835

18,055

Total costs and expenses

iii,945

5,693

17,314

28,236

Operating Income

5,802

5,242

17,775

ii,220

Interest and other income (loss)

(647

)

605

(485

)

939

Income earlier benefit from (provision for) income taxes

5,155

v,847

17,290

3,159

Do good from (provision for) income taxes

(3,819

)

2,239

(4,806

)

two,242

Cyberspace Income

$

1,336

$

eight,086

$

12,484

$

five,401

Basic net income per share

$

0.04

$

0.xxx

$

0.40

$

0.19

Shares used in calculating basic net income per share

33,735

26,959

31,459

28,117

Diluted net income per share

$

0.04

$

0.xxx

$

0.39

$

0.19

Shares used in computing diluted internet income per share

33,851

27,321

31,769

28,477

(i) unaudited quarterly financial data

(2) Derived from audited annual consolidated fiscal statements

Immersion Corporation

Reconciliation of GAAP Net Income to Non-GAAP Cyberspace Income

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Dec 31,

Year Ended

December 31,

2021

2020

2021

2020

GAAP net income

$

1,336

$

eight,086

$

12,484

$

v,401

Add: Provision for (benefit from) income taxes

3,819

(2,239

)

4,806

(ii,242

)

Less: Non-GAAP provision for income taxes

(66

)

(26

)

(205

)

(129

)

Add: Stock-based compensation

341

i,323

2,338

4,756

Add: Restructuring expense

78

827

690

i,446

Add together: Depreciation and amortization of belongings and equipment

24

23

99

1,052

Other non recurring accuse

269

369

Non-GAAP internet income

$

5,801

$

seven,994

$

20,581

$

10,284

Non-GAAP net income per diluted share

$

0.17

$

0.29

$

0.65

$

0.36

Shares used in calculating Not-GAAP net income per diluted share

33,851

27,321

31,769

28,477

Immersion Corporation

Disaggregated Revenue Information

(In thousands)

(Unaudited)

Iii Months Ended

December 31,

Years Concluded

Dec 31,

2021

2020

2021

2020

Fixed fee license revenue

$

one,497

$

i,651

$

five,843

$

v,472

Per-Unit of measurement royalty revenue

8,175

9,219

28,846

24,704

Total royalty and license revenue

ix,672

ten,870

34,689

30,176

Development, services, and other revenue

75

65

400

280

Total revenues

$

9,747

$

10,935

$

35,089

$

30,456

Immersion Corporation

Revenue by Line of Business

(Unaudited)

Iii Months Concluded

December 31,

Years Ended

December 31,

2021

2020

2021

2020

Mobility

50

%

57

%

60

%

69

%

Automotive

32

%

24

%

xix

%

xv

%

Gaming

xviii

%

19

%

21

%

fifteen

%

Other

%

%

%

one

%

100

%

100

%

100

%

100

%

Immersion Corporation

Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses

(In thousands)

(Unaudited)

Three Months Ended

December 31,

Years Ended

December 31,

2021

2020

2021

2020

GAAP operating expenses

$

3,935

$

v,663

$

17,226

$

28,068

Adjustments to GAAP operating expenses:

Stock-based compensation expense – Due south&Thousand

(67

)

(254

)

(745

)

(846

)

Stock-based bounty expense – R&D

(89

)

(216

)

(742

)

(870

)

Stock-based bounty expense – K&A

(185

)

(853

)

(851

)

(3,040

)

Restructuring expense

(78

)

(827

)

(690

)

(1,446

)

Depreciation and amortization expense of property and equipment

(24

)

(23

)

(99

)

(one,052

)

Other not recurring charges

(269

)

(369

)

Non-GAAP operating expenses

$

3,223

$

3,490

$

xiii,730

$

20,814

Contacts

Source: https://www.dailyhostnews.com/immersion-corporation-reports-fourth-quarter-2021-results

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