Posted November 13, 2023
GAAP Net Income of $2.7 million or $0.08 per diluted share
Non-GAAP Net Income of $4.0 million or $0.12 per diluted share
Repurchased 1.5% of shares outstanding
Increased quarterly dividend by 50 percent
Announces filing of Second Patent Lawsuit Against Meta
AVENTURA, Fla.–(BUSINESS WIRE)–Nov. 13, 2023– Immersion Corporation (NASDAQ: IMMR), a leading developer and provider of technologies
for haptics, today reported financial results for the third quarter ended September 30, 2023.
Third Quarter Financial Summary:
Total revenues of $9.5 million, compared to $14.0 million in the third quarter of 2022. Royalty and license revenues were
$9.5 million, compared to $13.9 million in the third quarter of 2022.
GAAP net income was $2.7 million, or $0.08 per diluted share, compared to GAAP net income of $7.7 million, or $0.23 per
diluted share, in the third quarter of 2022.
GAAP operating expenses of $3.0 million in the third quarter of 2023, compared to GAAP operating expenses of $3.1
million in the third quarter of 2022. Non-GAAP operating expenses of $2.0 million in the third quarter of 2023, compared to
Non-GAAP operating expenses of $2.3 million in the third quarter of 2022. (See attached table for a reconciliation of GAAP
to non-GAAP financial measures.)
Non-GAAP net income was $4.0 million, or $0.12 per diluted share in the third quarter of 2023, compared to non-GAAP
net income of $8.5 million, or $0.25 per diluted share in the third quarter of 2022.
Repurchased 485,061 shares in the third quarter of 2023 (1.5% of shares outstanding at September 30, 2023) at an
average price of $6.86 per share.
“It was a productive quarter for Immersion,” said Eric Singer, Chairman and CEO. “We are continuing our efforts to ensure that our intellectual property
for the AR/VR/metaverse market is recognized by the recent filing of a second legal complaint in the United States District Court of the Western District
of Texas against Meta Platforms, Inc. that alleges infringement on five Immersion patents. Whereas the previous suit is directed to Meta’s Quest 2 and
Quest Pro products and their related software, this second suit is focused on Meta’s recently launched Quest 3 product and related software. We look
forward to prosecuting this case and seeking out other opportunities to monetize our intellectual property, either through the execution of licenses or by
proactive enforcement.”
“We also are pleased with our financial performance this quarter. Our robust balance sheet continues to allow for meaningful shareholder returns,
including the decision by our Board of Directors to increase our quarterly dividend by 50 percent to $0.045 per share. Our stockholders’ equity
increased by $11.7 million year-to-date while providing $6.2 million and $6.4 million, respectively, in stock repurchases and dividends. We will continue
to pursue thoughtful capital allocation and believe our strong balance sheet positions us well in the current economic environment.”
The fifth quarterly dividend will be paid on January 25, 2024 to shareholders of record on January 14, 2024. Future quarterly dividends will be subject
to further review and approval by the Board of Directors (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.