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Sep 30, 2022

Immersion Q3 2022 Earnings Report

Immersion reported increased revenue and net income in Q3 2022, driven by strong royalty and license revenue.

Key Takeaways

Immersion Corporation reported a significant increase in revenue and net income for the third quarter of 2022. Total revenues increased to $14.0 million, and GAAP net income reached $7.7 million, or $0.23 per diluted share. The company also repurchased 7 percent of shares outstanding year to date and announced a quarterly dividend.

Total revenues increased to $14.0 million, compared to $7.2 million in Q3 2021.

GAAP net income was $7.7 million, or $0.23 per diluted share, compared to $3.8 million, or $0.12 per diluted share, in Q3 2021.

The company repurchased 2,542,065 shares year-to-date, representing 7.4% of shares outstanding.

A quarterly cash dividend of $0.03 per share was approved.

Total Revenue
$14M
Previous year: $7.17M
+95.3%
EPS
$0.28
Previous year: $0.15
+86.7%
Gross Profit
$13.8M
Previous year: $7.17M
+92.7%
Cash and Equivalents
$36.8M
Previous year: $90.6M
-59.4%
Free Cash Flow
$13.4M
Previous year: $1.67M
+705.0%
Total Assets
$171M
Previous year: $161M
+6.7%

Immersion

Immersion

Immersion Revenue by Segment

Forward Guidance

Immersion is focused on renewing license agreements, protecting its intellectual property, and pursuing thoughtful capital allocation to drive long-term shareholder value.

Positive Outlook

  • Renewing license agreements
  • Protecting intellectual property
  • Pursuing thoughtful capital allocation
  • Driving long-term shareholder value
  • Financial strength allows for significant share repurchases

Challenges Ahead

  • Very difficult macroeconomic backdrop
  • Inability to predict the outcome of any litigation
  • The costs associated with any litigation
  • The effects of the COVID-19 global pandemic
  • Unanticipated changes in the markets

Revenue & Expenses

Visualization of income flow from segment revenue to net income