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Mar 31, 2020

Immersion Q1 2020 Earnings Report

Immersion's Q1 2020 results were reported, with a focus on improving profitability and enhancing shareholder value.

Key Takeaways

Immersion Corporation reported a 22% increase in revenue compared to the same quarter last year. GAAP operating expenses decreased by 35% year-over-year. The company repurchased $12 million of common stock during the quarter.

Total revenues grew 22% to $6.3 million compared to $5.1 million in Q1 2019.

GAAP operating expenses declined 35% to $10.8 million from $16.6 million in Q1 2019.

GAAP net loss was $4.8 million, or $0.16 per diluted share, compared to a net loss of $11.0 million, or $0.35, in Q1 2019.

Non-GAAP net loss was $2.6 million, or $0.08 per diluted share, compared to a non-GAAP net loss of $8.6 million, or $0.28, in Q1 2019.

Total Revenue
$6.26M
Previous year: $5.12M
+22.2%
EPS
-$0.08
Previous year: -$0.28
-71.4%
Gross Profit
$6.21M
Previous year: $5.11M
+21.7%
Cash and Equivalents
$76.2M
Previous year: $103M
-25.7%
Free Cash Flow
-$1.34M
Previous year: -$7.58M
-82.4%
Total Assets
$107M
Previous year: $148M
-27.6%

Immersion

Immersion

Immersion Revenue by Segment

Immersion Revenue by Geographic Location

Forward Guidance

Immersion expects to be profitable on a non-GAAP basis for the fiscal year and intends to exit 2020 with an annual non-GAAP operating expense run rate of approximately $21 to $23 million.

Positive Outlook

  • Confident in strategy.
  • Focused on executing across opportunities to unlock Immersion’s full profit and growth potential.
  • Anticipated launch later this year of the PlayStation 5 console leveraging Sony’s license of Immersion’s haptic technology for gaming and VR controllers.
  • Management team is working collaboratively with new Board to optimize business.
  • Improve profitability to maximize value for shareholders.

Challenges Ahead

  • Do not intend to provide revenue guidance.
  • Uncertainty and the potential variability of many of the costs and expenses that may be incurred in the future.
  • 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.
  • Effects of the current macroeconomic climate (especially in light of the ongoing adverse effects of the COVID-19 global pandemic).

Revenue & Expenses

Visualization of income flow from segment revenue to net income