Business
Immersion Corporation Reports Second Quarter 2020 Results
Company significantly enhancing operating model to deliver substantial improvements in profitability and cash generation; Repurchases $30 million in stock
About this update from Immersion Corporation
[{"type":"text","content":"\nCompany significantly enhancing operating model to deliver substantial improvements in profitability and cash generation; Repurchases $30 million in stock year-to-date\n\n SAN FRANCISCO--(BUSINESS WIRE)--\nImmersion Corporation (NASDAQ: IMMR), the leading developer and provider of technologies for haptics, today reported financial results for the second quarter ended June 30, 2020.\n\n\nSecond Quarter Financial Summary:\n\n\n\nTotal revenues of $5.7 million, compared to $8.7 million in the second quarter of 2019. Royalty and license revenues were $5.6 million, compared to $8.6 million in the second quarter of 2019.\n\n\nGAAP operating expenses of $6.7 million declined 63% from $17.9 million in the second quarter of 2019. Non-GAAP operating expenses of $5.2 million declined 69% from non-GAAP operating expenses of $16.6 million in the second quarter of 2019. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)\n\n\nGAAP net loss was $0.7 million, or $0.03 per diluted share, compared to GAAP net loss of $8.6 million, or $0.27, in the second quarter of 2019.\n\n\nNon-GAAP net income was $0.8 million, or $0.03 per diluted share, compared to non-GAAP net loss of $7.4 million, or $0.23, in the second quarter of 2019.\n\n\nAs of June 30, 2020, cash and cash equivalents totaled $54.1 million. During the second quarter, the company used approximately $18.7 million to purchase approximately 2.9 million shares of its common stock.\n\n\n\nFinancial Outlook:\n\n\n“I’m excited about the progress we’ve made executing our strategy to deliver new products, lower operating expenses, lead development of industry standards, and achieve sustained profitability,” said Ramzi Haidamus, Immersion’s President and CEO. “This quarter, we significantly improved our operating model and implemented further cost reductions to align with the current business environment. Our efforts put us on track for an approximately $17 to $19 million Non-GAAP operating expense run rate exiting Q4 of this year, compared to a prior exit run rate of $21 to $23 million. Our recurring revenue, which is our strategic focus, was relatively stable year over year. The combination of these actions enables us to generate positive cash flow and positions us well to deliver sustained profit. We continue to move our product and standards initiatives forward ...