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Jun 30, 2023

Immersion Q2 2023 Earnings Report

Immersion Corporation reported financial results for the second quarter ended June 30, 2023.

Key Takeaways

Immersion Corporation reported a decrease in revenue compared to the same quarter last year, but net income improved significantly. The company repurchased 1.3% of shares outstanding and extended its share repurchase program.

Total revenues were $7.0 million, a decrease from $8.0 million in the second quarter of 2022.

GAAP net income was $7.0 million, or $0.21 per diluted share, compared to a net loss of $1.8 million, or $0.05 per diluted share, in the second quarter of 2022.

Non-GAAP net income was $9.1 million, or $0.28 per diluted share, compared to a non-GAAP net loss of $1.1 million, or $0.03 per diluted share, in the second quarter of 2022.

The company repurchased 413,696 shares in the second quarter of 2023, representing 1.3% of shares outstanding.

Total Revenue
$6.98M
Previous year: $7.98M
-12.5%
EPS
$0.28
Previous year: -$0.03
-1033.3%
Gross Profit
$6.88M
Previous year: $7.77M
-11.4%
Cash and Equivalents
$25.8M
Previous year: $57.4M
-55.0%
Free Cash Flow
$5.23M
Previous year: $7.59M
-31.1%
Total Assets
$202M
Previous year: $174M
+16.4%

Immersion

Immersion

Immersion Revenue by Segment

Forward Guidance

The company continues to focus on protecting its intellectual property and pursuing thoughtful capital allocation to increase long-term shareholder value. Future quarterly dividends will be subject to further review and approval by the Board.

Positive Outlook

  • Focus on protecting intellectual property.
  • Execution of new or renewal license agreements.
  • Proactive enforcement of intellectual property.
  • Continuing to pursue thoughtful capital allocation.
  • Increase long-term shareholder value.

Challenges Ahead

  • Inability to predict the outcome of any litigation.
  • Costs associated with any litigation.
  • Risks related to our business, both direct and indirect, of initiating litigation.
  • Unanticipated changes in the markets in which the Company operates.
  • Effects of the current macroeconomic climate.