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Sep 30, 2020

Immersion Q3 2020 Earnings Report

Company significantly improved operating model and reached profitability on a GAAP basis.

Key Takeaways

Immersion Corporation reported a profitable third quarter, with earnings per share of $0.11 on a GAAP basis and $0.15 on a non-GAAP basis. The company saw continued sequential improvement in revenue and earnings and announced a leadership transition.

Total revenues were $7.6 million, compared to $10.6 million in the third quarter of 2019.

GAAP operating expenses declined 58% from $11.8 million in the third quarter of 2019.

GAAP net income was $2.9 million, or $0.11 per diluted share.

Cash and cash equivalents increased to $55.9 million as of September 30, 2020.

Total Revenue
$7.6M
Previous year: $10.6M
-28.5%
EPS
$0.15
Previous year: $0.0307
+388.8%
Gross Profit
$7.56M
Previous year: $10.6M
-28.4%
Cash and Equivalents
$55.9M
Previous year: $86.6M
-35.4%
Free Cash Flow
$1.77M
Previous year: -$6.95M
-125.5%
Total Assets
$87.4M
Previous year: $128M
-31.6%

Immersion

Immersion

Immersion Revenue by Segment

Forward Guidance

Immersion remains on track for an approximately $17 to $19 million non-GAAP operating expense run rate exiting Q4 of this year.

Positive Outlook

  • Reached a key milestone of achieving profitability on both a GAAP and a non-GAAP basis.
  • Achieved positive cash flow.
  • Seeing signs of recovery from COVID across markets.
  • Excited about the imminent launch of the PlayStation 5.
  • PlayStation 5 is garnering positive reviews for the haptic capabilities of its DualSense controller.

Revenue & Expenses

Visualization of income flow from segment revenue to net income