Stock to watch: Immersion Corporation’s (NASDAQ: IMMR)

On Tuesday, Immersion Corporation’s (NASDAQ: IMMR) has shown upward/downward move of -5.31% and ended the last trade at $8.74. The trading volume was recorded to 371,543 shares as compared to average traded volume of 281,870 shares.

Immersion Corporation (IMMR) recently stated financial results for the third quarter and nine months ended September 30, 2018.

Effective January 1, 2018, the company adopted a new revenue recognition standard (“ASC 606”), which influenced the company’s recognition of revenue from certain of its fixed-fee and per-unit license contracts. The company adopted ASC 606 using the modified retrospective method, which means that the total amount of revenue stated for third quarter 2017 has not been restated in the current financial statements. In the interest of comparability during the transition year to ASC 606, the company has provided revenue, net income and earnings per share information in accordance with both ASC 606 and revenue recognition rules in effect previous to the adoption of ASC 606 (“ASC 605”).

Third Quarter 2018 Financial Highlights

Total revenues for the third quarter of 2018 were $8.6M. Royalty and license revenues for the third quarter of 2018 were $8.5M.

Net loss for the third quarter of 2018 was $(4.6)M, or $(0.15) per diluted share.

Non-GAAP net loss for the third quarter of 2018 was $(2.2)M, or $(0.07) per share. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)

Nine Months Ended September 30, 2018 Financial Highlights

Total revenues for the nine months ended September 30, 2018 were $100.1M. Royalty and license revenues for the nine months ended September 30, 2018 were $99.8M.

Net income for the nine months ended September 30, 2018 was $57.5M, or $1.83 per diluted share.

Non-GAAP net income for the nine months ended September 30, 2018 was $63.9M, or $2.04 per share.

As of September 30, 2018, Immersion’s cash, cash equivalents and short-term investments were $130.5M, contrast to $136.7M as of June 30, 2018 and $46.5M as of December 31, 2017.

Recent Business Highlights

  • Signed a license contract with Preh, a leading supplier of human machine interface solutions for automobiles, incorporating haptics into automotive surfaces and panels.
  • Stated findings of a new commissioned neuroscience study revealing people exposed to video content on smartphones had more positive reactions, higher engagement, and raised recall ability when the mobile content was improved with haptics, i.e., touch technology.
  • Designated industry veteran Tom Lacey as Interim Chief Executive Officer and a member of the Board of Directors.

Return on assets ratio of the Company was 35.80% and return on equity ratio was 57.00% while its return on investment ratio was -340.20%. The stock as of last trading session moved 38.51% up from its 52 week low and was -50.63% behind its 52 week high.

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