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Sep 30, 2023

Immersion Q3 2023 Earnings Report

Immersion's revenue decreased, but the company repurchased shares and increased the quarterly dividend.

Key Takeaways

Immersion Corporation reported a decrease in revenue for Q3 2023, with total revenues of $9.5 million compared to $14.0 million in Q3 2022. Despite the revenue decline, the company's GAAP net income was $2.7 million, or $0.08 per diluted share. Immersion repurchased 1.5% of shares outstanding and increased the quarterly dividend by 50 percent. They also announced the filing of a second patent lawsuit against Meta.

Total revenues were $9.5 million, a decrease from $14.0 million in the third quarter of 2022.

GAAP net income reached $2.7 million, or $0.08 per diluted share.

Non-GAAP net income was $4.0 million, or $0.12 per diluted share.

Immersion repurchased 485,061 shares, representing 1.5% of shares outstanding.

Total Revenue
$9.48M
Previous year: $14M
-32.3%
EPS
$0.12
Previous year: $0.28
-57.1%
Gross Profit
$9.42M
Previous year: $13.8M
-31.8%
Cash and Equivalents
$28.7M
Previous year: $36.8M
-21.9%
Free Cash Flow
$4.02M
Previous year: $13.4M
-70.0%
Total Assets
$205M
Previous year: $171M
+19.5%

Immersion

Immersion

Immersion Revenue by Segment

Forward Guidance

Immersion is focused on protecting its intellectual property and pursuing thoughtful capital allocation to increase long-term shareholder value.

Positive Outlook

  • Continuing efforts to ensure intellectual property is recognized.
  • Filed a second legal complaint against Meta Platforms, Inc.
  • Seeking opportunities to monetize intellectual property.
  • Robust balance sheet allows for meaningful shareholder returns.
  • Board of Directors increased quarterly dividend by 50 percent.

Challenges Ahead

  • Inability to predict the outcome of any litigation.
  • Costs associated with any litigation.
  • Risks related to the business of initiating litigation.
  • Unanticipated changes in the markets.
  • Effects of the current macroeconomic climate.