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IMMR...Immersion Corporation Reports First Quarter 2021 Results

- Generated 14% of revenue growth over first quarter 2020, positive operating cash flow, and strong profitability

- Sees continued sequential improvement in revenue and operating income for the remainder of the year

- Closed the quarter with cash and cash equivalents of over $3 per share

Immersion Corporation (NASDAQ: IMMR), the leading developer and provider of technologies for haptics, today reported financial results for the first quarter ended March 31, 2021.

First Quarter Financial Summary:

Total revenues of $7.2 million, compared to $6.3 million in the first quarter of 2020. Royalty and license revenues were $7.1 million, compared to $6.2 million in the first quarter of 2020.

GAAP operating expenses of $4.6 million declined 57% from $10.8 million in the first quarter of 2020. Non-GAAP operating expenses of $4.0 million declined 53% from non-GAAP operating expenses of $8.5 million in the first quarter of 2020. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)

GAAP net income was $2.0 million, or $0.07 per diluted share, compared to GAAP net loss of $4.8 million, or $0.16, in the first quarter of 2020.

Non-GAAP net income was $2.8 million, or $0.10 per diluted share, compared to non-GAAP net loss of $2.6 million, or $0.08, in the first quarter of 2020.

As of March 31, 2021, cash and cash equivalents totaled $102.6 million.

Financial Outlook:

"The positive financial results that we report today is the result of our team’s progress in transforming the business, despite the uncertain environment of COVID 19. With continued disciplined focus on optimizing operating expenses and growing our revenues, Immersion is on a positive trajectory toward improved profitability and cash flow generation," said Jared Smith, Immersion’s Interim CEO. "Interest in haptics is at an all-time high. We expect that as more consumers experience advanced haptics, we’ll see greater adoption of our technology in our core markets, resulting in continued growth for the company."

Recent Business Highlights:

Continued adoption of haptics by automotive brands, including the new Cadillac Celestiq and BMW iX, supplied by existing Immersion tier 1 licensees.

Year over year quarterly revenue growth in each of Immersion’s three core markets: automotive, gaming, and mobile.

Panasonic Mobile Communications Co. Ltd. renewed its license for Immersion technology and TouchSense software in mobile.

Expanded the reach of our channel partner program, reflecting increased momentum in the China mobile market.

First Quarter Earnings Conference Call and Webcast

Immersion will host a conference call with company management today at 2:00 p.m. PT (5:00 p.m. ET) to discuss financial results for the first quarter ended March 31, 2021. To participate on the live call, analysts and investors should dial [phone] (conference ID: 8181866) at least ten minutes prior to the start of the call.

A recorded webcast will also be available for 90 days in the "IR News and Events" page of Immersion's Investor Relations website at https://ir.immersion.com/news-and-events.