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• Content META

  Title	Immersion Corporation Reports Second Quarter of Fiscal 2025 Results
  ID	5158313
  External ID	7395181973
  Author	Unknown
  Published Date	Dec. 16, 2024, 8:25 a.m.
  Summary	GAAP Net Income Attributable to Immersion stockholders of $27.2 million or $0.83 per diluted share Non-GAAP Net Income Attributable to Immersion stockholders of $40.2 million or $1.22 per diluted sha
  Tags	None
  URL	https://finance.yahoo.com/news/immersion-corporation-reports-second-quarter-135500312.html
  Sentiment	Negative: 0.84247    Neutral: 0.13884    Positive: 0.01869
  Relevance	0.03268

• Content Details

  Content ID	3106085
  Key	fad047f7-0cbd-41c3-8b15-ef9ee012dea7
  Content	GAAP Net Income Attributable to Immersion stockholders of $27.2 million or $0.83 per diluted share Non-GAAP Net Income Attributable to Immersion stockholders of $40.2 million or $1.22 per diluted share AVENTURA, Fla., December 16, 2024--(BUSINESS WIRE)--Immersion Corporation ("Immersion", the "Company", "we", "us" or "our") (Nasdaq: IMMR), a leading provider of technologies for haptics, today reported financial results for the second quarter of its fiscal year ending April 30, 2025, ("fiscal 2025"). Second Quarter of Fiscal 2025 Consolidated Financial Summary1: Non-GAAP net income attributable to Immersion Corporation stockholders was $40.2 million, or $1.22 per diluted share, in the three months ended October 31, 2024, compared to $8.4 million, or $0.26 per diluted share, in the three months ended June 30, 2023. GAAP operating expenses of $86.3 million in the three months ended October 31, 2024, compared to $3.9 million in the three months ended June 30, 2023. Non-GAAP operating expenses of $73.2 million in the three months ended October 31, 2024, compared to $2.5 million in the three months ended June 30, 2023. GAAP net income attributable to Immersion Corporation stockholders was $27.2 million, or $0.83 per diluted share in the three months ended October 31, 2024, compared to $7.0 million, or $0.21 per diluted share, in the three months ended June 30, 2023. 1 On June 10, 2024, the Company closed certain transactions with Barnes & Noble Education, Inc. ("Barnes & Noble Education"). As part of the transactions, the Company acquired 42% of all outstanding common shares of Barnes & Noble Education, as well as control over Barnes & Noble Education through the five Immersion-appointed board seats. During the second quarter of fiscal 2025, Immersion’s stock ownership was reduced to 41.2% as a result of additional issuances of Barnes & Noble Education’s common stock to noncontrolling stockholders. The financial information presented in this press release includes the consolidated financial information of Barnes & Noble Education from the period of June 10, 2024, through October 31, 2024. The Company owns approximately 11 million shares of Barnes & Noble Education’s common stock. "Immersion executed well against its key business objectives in the quarter," said Eric Singer, Chairman and CEO. "Underscoring our financial strength, we announced a special dividend of $ 0.245 per share payable on January 24, 2025, to shareholders of record of January 10, 2025. We will continue to pursue thoughtful capital allocation as we aim to build our business and create long term shareholder value," added Singer. Story Continues In order to more closely align with Barnes & Noble Education’s fiscal year end, on September 27, 2024, the Board of Directors of Immersion (the "Board") approved a change of our fiscal year from the period beginning on January 1 and ending on December 31 to the period beginning on May 1 and ending on April 30. Our new fiscal quarters end on July 31, October 31, January 31, and April 30. Therefore, the financial results of certain fiscal quarters may not be comparable to prior fiscal quarters. We did not recast the condensed consolidated financial statements for the three and six months ended October 31, 2023, because the financial reporting processes in place at that time included certain procedures that were completed only on a quarterly basis. Consequently, to recast this period would have been impractical and would not have been cost-justified. As a result, the condensed consolidated financial statements for the three and six months ended June 30, 2023, are presented as the most comparable quarter of the prior year. The condensed consolidated financial information presented includes the financial information of Barnes & Noble Education for the 13 weeks ended October 26, 2024, and for period from June 10, 2024, to October 31, 2024. On November 8, 2024, our Board declared a special cash dividend of $0.245 per share on our outstanding common stock payable, subject to any prior revocation, on January 24, 2025, to stockholders of record on January 10, 2025. Future quarterly dividends will be subject to further review and approval by the Board in accordance with applicable law. The Board reserves the right to adjust or withdraw the quarterly dividend in future periods as it reviews the Company’s capital allocation strategy from time-to-time. About Immersion Corporation Immersion Corporation (Nasdaq: IMMR) was incorporated in 1993 in California and reincorporated in Delaware in 1999. The Company is a leading provider of touch feedback technology, also known as haptics. The Company accelerates and scales haptic experiences by providing haptic technology for mobile, automotive, gaming, and consumer electronics. Haptic technology creates immersive and realistic experiences that enhance digital interactions by engaging users’ sense of touch. Learn more at www.immersion.com. On June 10, 2024, we acquired a controlling interest in Barnes & Noble Education. Barnes & Noble Education is a contract operator of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. Barnes & Noble Education is also a textbook wholesaler and inventory management hardware and software providers. Barnes & Noble Education operates physical, virtual, and custom bookstores, delivering essential educational content, tools, and general merchandise within a dynamic omnichannel retail environment. Use of Non-GAAP Financial Measures The Company reports all financial information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing operating results may be difficult to understand if limited to reviewing only GAAP financial measures. The Company discloses certain non-GAAP information, such as Non-GAAP net income attributable to Immersion stockholders, Non-GAAP net income per diluted common share attributable to Immersion stockholders, and Non-GAAP operating expenses because it is useful in understanding the Company’s performance as it excludes certain non-cash expenses like stock-based compensation expense, depreciation and amortization of property and equipment, restructuring expense, business acquisition related costs and other nonrecurring charges that many investors feel may obscure the Company’s true operating performance. Likewise, management uses these non-GAAP financial measures to manage and assess the profitability of its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Forward-looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The forward-looking statements involve risks and uncertainties. Forward-looking statements are identified by words such as "anticipates," "believes," "expects," "intends," "may," "can," "will," "places," "estimates," and other similar expressions. However, these words are not the only way we identify forward-looking statements. Examples of forward-looking statements include any expectations, projections, or other characterizations of future events, or circumstances, including but not limited to statements about the Company’s focus on protecting its intellectual property, either through the execution of new or renewal license agreements or by proactive enforcement continuing to pursue thoughtful capital allocation to increase long-term stockholder value, and the timing of any dividend payments. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results could differ materially from those projected in the forward-looking statements, therefore we caution you not to place undue reliance on these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the inability to predict the outcome of any litigation, the costs associated with any litigation and the risks related to our business, both direct and indirect, of initiating litigation, unanticipated changes in the markets in which the Company operates; the effects of the current macroeconomic climate; delay in or failure to achieve adoption of or commercial demand for the Company’s products or third party products incorporating the Company’s technologies; the inability of Immersion to renew existing licensing arrangements, or enter into new licensing arrangements on favorable terms; the loss of a major customer; the ability of Immersion to protect and enforce its intellectual property rights and other factors. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in Immersion’s Annual Report on Form 10-K for 2023 as filed with the U.S. Securities and Exchange Commission (the "SEC"), Barnes & Noble Education’s Annual Report on Form 10-K for its fiscal year ended April 27, 2024, as filed with the SEC, and Immersion’s Quarterly Report on Form 10-Q for the quarter ended October 31, 2024, as filed with the SEC. Any forward-looking statements made by us in this press release speak only as of the date of this press release, and the Company does not intend to update these forward-looking statements after the date of this press release, except as required by law. Immersion, and the Immersion logo are trademarks of Immersion Corporation in the United States and other countries. All the other trademarks are the property of their respective owners. The use of the word "partner" or "partnership" in this press release does not mean a legal partner or legal partnership. (IMMR – C) Immersion Corporation Condensed Consolidated Balance Sheets (In thousands) (Unaudited) October 31, 2024 April 30, 2024 ASSETS Current assets Immersion Cash and cash equivalents $ 68,920 $ 85,521 Investments - current 78,809 92,848 Accounts receivable, net 4,315 3,138 Prepaid expenses and other current assets 14,846 9,101 166,890 190,608 Barnes & Noble Education Cash and cash equivalents 11,619 — Accounts receivable, net 275,847 — Merchandise inventories, net 315,469 — Textbook rental Inventories, net 49,672 — Prepaid expenses and other current assets 33,329 — 685,936 — Total current assets 852,826 190,608 Immersion Property and equipment, net 142 164 Investments - noncurrent 37,347 46,545 Long-term deposits 6,293 6,324 Deferred tax assets 3,342 2,793 Other assets - noncurrent 24,398 87 71,522 55,913 Barnes & Noble Education Property and equipment, net 107,413 — Intangible assets, net 93,504 — Goodwill 14,220 — Operating lease right-of-use assets 169,250 — Other assets - noncurrent 11,383 — 395,770 — Total assets $ 1,320,118 $ 246,521 Immersion Corporation Condensed Consolidated Balance Sheets (Continued) (In thousands) (Unaudited) October 31, 2024 April 30, 2024 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Immersion Accounts payable $ 51 $ 55 Accrued compensation 2,860 4,003 Deferred revenue - current 2,956 12,494 Other current liabilities 25,478 13,654 31,345 30,206 Barnes & Noble Education Accounts payable 298,952 — Accrued liabilities 60,508 — Deferred revenue - current 37,662 — Operating lease liabilities - current 88,730 — 485,852 — Total current liabilities 517,197 30,206 Immersion Deferred revenue, net 7,262 7,978 Other long-term liabilities 4,946 7,107 12,208 15,085 Barnes & Noble Education Deferred tax liabilities, net 2,050 — Operating lease liabilities - noncurrent 114,290 — Deferred revenue - noncurrent 3,215 — Other noncurrent liabilities 11,120 — Long-term borrowings 177,551 — 308,226 — Total liabilities 837,631 45,291 Total stockholders' equity attributable to Immersion Corporation stockholders 310,881 201,230 Noncontrolling interest in consolidated subsidiaries 171,606 — Total stockholders' equity 482,487 201,230 Total liabilities and stockholders' equity $ 1,320,118 $ 246,521 Immersion Corporation Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended October 31, 20241 June 30, 2023 October 31, 20241 June 30, 2023 Revenues: Immersion Royalty and license $ 14,127 $ 6,983 $ 62,552 $ 14,057 Barnes & Noble Education Product and other 559,674 — 689,792 — Rental income 42,448 — 47,394 — Total revenues 616,249 6,983 799,738 14,057 Cost of sale (excludes depreciation and amortization expense): Barnes & Noble Education Product and other 443,123 — 554,004 — Rental income 22,387 — 25,183 — 465,510 — 579,187 — Operating expenses: Immersion Selling and administrative expenses 4,165 3,870 17,576 7,685 Barnes & Noble Education Selling and administrative expenses 72,717 — 107,324 — Depreciation and amortization expense 9,391 — 14,651 Restructuring and other charges 59 — 5,064 — 82,167 — 127,039 — Total operating expenses 86,332 3,870 144,615 7,685 Operating income 64,407 3,113 75,936 6,372 Interest and other income, net 3,540 6,759 14,236 13,285 Interest expense (4,547 ) — (6,914 ) — Income before provision for income taxes 63,400 9,872 83,258 19,657 Provision for income taxes (7,641 ) (2,844 ) (15,104 ) (4,351 ) Net income $ 55,759 $ 7,028 $ 68,154 $ 15,306 Net income attributable to noncontrolling interest 28,602 — 13,837 — Net income attributable to Immersion stockholders $ 27,157 $ 7,028 $ 54,317 $ 15,306 Diluted income per common share attributable to Immersion stockholders $ 0.83 $ 0.21 $ 1.65 $ 0.47 Shares used in calculating diluted net income per share 32,917 32,810 32,889 32,839 1 The financial information presented includes the financial information of Barnes & Noble Education for the 13 weeks and 26 weeks ended October 26, 2024. For purposes of these consolidated financial statements, the results of Barnes & Noble Education herein have been aligned to the Company’s reporting periods. Immersion Corporation Reconciliation of GAAP net income attributable to Immersion stockholders to Non-GAAP net income attributable to Immersion stockholders (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended October 31, 20241 June 30, 20232 October 31, 20241 June 30, 20232 GAAP net income attributable to Immersion stockholders $ 27,157 $ 7,028 $ 54,317 $ 15,306 Add: Stock-based compensation 3,185 760 4,800 1,707 Depreciation and amortization of property and equipment 9,391 21 14,680 42 Restructuring expense and other charges 59 125 5,064 312 Business acquisition related costs 426 — 2,774 — Other nonrecurring charges 31 481 71 560 Non-GAAP net income attributable to Immersion stockholders $ 40,249 $ 8,415 $ 81,706 $ 17,927 Non-GAAP net income per diluted common share attributable to Immersion stockholder $ 1.22 $ 0.26 $ 2.48 $ 0.55 Shares used in calculating Non-GAAP net income per diluted share attributable to Immersion stockholder 32,917 32,810 32,889 32,839 1 The financial information presented includes the financial information of Barnes & Noble Education for the 13 weeks and 26 weeks ended October 26, 2024. For purposes of these consolidated financial statements, the results of Barnes & Noble Education herein have been aligned to the Company’s reporting periods. 2 In order to provide for better comparability between periods and a better understanding of underlying trends, the Non-GAAP information above includes an updated presentation of the applicable period of the prior year 2023. Immersion Corporation Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (In thousands) (Unaudited) Three Months Ended Six Months Ended October 31, 2024 June 30, 2023 October 31, 2024 June 30, 2023 GAAP operating expenses $ 86,332 $ 3,870 $ 144,615 $ 7,685 Adjustments to GAAP operating expenses: Stock-based compensation expense (3,185 ) (760 ) (4,800 ) (1,707 ) Depreciation and amortization expense of property and equipment (9,391 ) (21 ) (14,680 ) (42 ) Restructuring expense charges (59 ) (125 ) (5,064 ) (312 ) Business acquisition related costs (426 ) — (2,774 ) — Other nonrecurring charges (31 ) (481 ) (71 ) (560 ) Non-GAAP operating expenses $ 73,240 $ 2,483 $ 117,226 $ 5,064 View source version on businesswire.com: https://www.businesswire.com/news/home/20241216031626/en/ Contacts Investor Contact: J. Michael Dodson Immersion Corporation mdodson@immersion.com
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