NASDAQ$IMMR

Immersion Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Immersion's Q1 2020 results were reported, with a focus on improving profitability and enhancing shareholder value.

Immersion Corporation reported a 22% increase in revenue compared to the same quarter last year. GAAP operating expenses decreased by 35% year-over-year. The company repurchased $12 million of common stock during the quarter.

  • Total revenues grew 22% to $6.3 million compared to $5.1 million in Q1 2019.
  • GAAP operating expenses declined 35% to $10.8 million from $16.6 million in Q1 2019.
  • GAAP net loss was $4.8 million, or $0.16 per diluted share, compared to a net loss of $11.0 million, or $0.35, in Q1 2019.
  • Non-GAAP net loss was $2.6 million, or $0.08 per diluted share, compared to a non-GAAP net loss of $8.6 million, or $0.28, in Q1 2019.

Headline financials

Total Revenue

$6.26M

Previous: $5.12M+22.2%
EPS (adj)

-$0.08

Previous: -$0.28+71.4%
Capital Expenditures

-$21K

Previous: -$6K-250.0%
Free Cash Flow

-$4.85M

Previous: -$11M+56.0%
Net Income

-$4.83M

Previous: -$11M+56.2%
Operating Income

-$4.55M

Previous: -$11.5M+60.4%
Gross Profit

$6.21M

Previous: $5.11M+21.7%
Cash & Equivalents

$76.2M

Previous: $103M-25.7%
Total Assets

$107M

Previous: $148M-27.6%
Stock-Based Comp

$729K

Previous: $2.1M-65.3%

Revenue & EPS history

Immersion · Revenue · Quarterly

$6.26M

Q1 2020+22.2%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Immersion · $9.47M total across 1 segment · Q3 2023

  • Royalty and license
    $9.47M

Forward guidance

Immersion expects to be profitable on a non-GAAP basis for the fiscal year and intends to exit 2020 with an annual non-GAAP operating expense run rate of approximately $21 to $23 million.

Tailwinds

  • Confident in strategy.
  • Focused on executing across opportunities to unlock Immersion’s full profit and growth potential.
  • Anticipated launch later this year of the PlayStation 5 console leveraging Sony’s license of Immersion’s haptic technology for gaming and VR controllers.
  • Management team is working collaboratively with new Board to optimize business.
  • Improve profitability to maximize value for shareholders.

Headwinds

  • Do not intend to provide revenue guidance.
  • Uncertainty and the potential variability of many of the costs and expenses that may be incurred in the future.
  • Effects of the COVID-19 global pandemic on the Company and its business, and on the business of its suppliers and customers.
  • Unanticipated changes in the markets in which the Company operates.
  • Effects of the current macroeconomic climate (especially in light of the ongoing adverse effects of the COVID-19 global pandemic).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.9%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+2.7%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+23.8%

Q3 2022

Best reaction

-23.0%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%
Q3 2026+3.6%+6.7%+5.5%
Q2 2026+3.6%+15.2%+11.3%
Q1 2025+5.0%+5.2%+4.1%
Q3 2025-0.1%+0.9%-7.9%
Q3 2024+7.6%+1.2%+3.3%
Q2 2024-6.5%-10.1%-16.1%
Q1 2024+9.6%+14.0%+32.0%
Q4 2023+7.7%+15.8%+10.2%
Q3 2023-8.6%-4.6%-0.1%
Q2 2023+7.8%+6.4%+0.7%
Q1 2023-6.7%-1.0%+9.2%
Q4 2022+11.9%+13.1%+20.1%
Q3 2022+23.8%+24.0%+47.4%
Q2 2022-9.2%-9.9%-0.3%
Q1 2022+20.1%+29.4%+26.0%
Q4 2021+8.5%+13.2%+13.4%
Q3 2021-23.0%-22.7%-39.4%
Q2 2021-10.9%-3.2%-1.4%
Q1 2021-7.9%-13.3%+1.3%
Q4 2020-3.3%+3.4%-3.5%
Q3 2020-1.2%-0.7%+15.4%
Q2 2020+14.1%+20.9%+30.9%
Q1 2020+1.0%-3.3%+2.9%
Q4 2019-19.5%-26.4%-27.8%
Q3 2019-6.7%-8.5%-19.4%
Q2 2019+0.5%-3.0%+2.1%
Q1 2019-18.2%-23.8%-30.1%
Q4 2018-7.4%-9.7%-16.4%
Q3 2018+1.8%-5.0%-5.2%
Q2 2018-22.3%-18.4%-16.3%
Q1 2018+9.2%+16.9%+41.4%
Q4 2017+13.3%+15.9%+19.8%
Q3 2017-4.5%-19.8%-5.5%
Q2 2017-20.5%-21.0%-12.9%
Q1 2017-10.5%-9.3%-5.0%
Q4 2016-23.0%-26.5%-22.3%
Q3 2016+8.5%+15.2%+34.6%
Q2 2016-14.6%-15.3%-0.3%
Q1 2016-3.9%
Q4 2015+16.7%
Q3 2015+11.8%
Q2 2015+17.9%
Q1 2015+3.6%
Q4 2014-1.2%
Q3 2014+0.7%
Q2 2014-21.0%
Q1 2014-7.2%
Q4 2013+6.8%
Q3 2013+7.6%
Q2 2013-0.5%
Q1 2013+20.7%
Q4 2012-5.4%
Q3 2012+5.3%
Q2 2012+7.4%
Q1 2011+3.9%
Q1 2012-0.4%
Q4 2011+5.4%
Q3 2011-11.1%
Q2 2011-18.5%
Q2 2010-18.5%
Q4 2010-3.8%
Q3 2010-9.0%
Q1 2010+4.9%

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