NASDAQ$IMMR

Immersion Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Company significantly improved operating model and reached profitability on a GAAP basis.

Immersion Corporation reported a profitable third quarter, with earnings per share of $0.11 on a GAAP basis and $0.15 on a non-GAAP basis. The company saw continued sequential improvement in revenue and earnings and announced a leadership transition.

  • Total revenues were $7.6 million, compared to $10.6 million in the third quarter of 2019.
  • GAAP operating expenses declined 58% from $11.8 million in the third quarter of 2019.
  • GAAP net income was $2.9 million, or $0.11 per diluted share.
  • Cash and cash equivalents increased to $55.9 million as of September 30, 2020.

Headline financials

Total Revenue

$7.6M

Previous: $10.6M-28.5%
EPS (adj)

$0.15

Previous: $0.03+388.8%
Capital Expenditures

-$40K

Previous: -$12K-233.3%
Free Cash Flow

$2.82M

Previous: -$1.4M+301.2%
Net Income

$2.86M

Previous: -$1.39M+305.8%
Operating Income

$2.59M

Previous: -$1.28M+302.7%
Gross Profit

$7.56M

Previous: $10.6M-28.4%
Cash & Equivalents

$55.9M

Previous: $86.6M-35.4%
Total Assets

$87.4M

Previous: $128M-31.6%
Stock-Based Comp

$1.34M

Previous: $1.19M+12.8%

Revenue & EPS history

Immersion · Revenue · Quarterly

$7.6M

Q3 2020-28.5%vs Q3 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 remains on track for an approximately $17 to $19 million non-GAAP operating expense run rate exiting Q4 of this year.

Tailwinds

  • Reached a key milestone of achieving profitability on both a GAAP and a non-GAAP basis.
  • Achieved positive cash flow.
  • Seeing signs of recovery from COVID across markets.
  • Excited about the imminent launch of the PlayStation 5.
  • PlayStation 5 is garnering positive reviews for the haptic capabilities of its DualSense controller.

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 Q3 2020

Historical avgQ3 2020

-0.9%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+2.6%

Avg return

30 days after

49%

31 / 63 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
Q3 2026+3.6%+6.7%
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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