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Immersion Corp. Reports Operating Results (10-Q)

November 05, 2010 | About:
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10qk

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Immersion Corp. (IMMR) filed Quarterly Report for the period ended 2010-09-30.

Immersion Corp. has a market cap of $170.8 million; its shares were traded at around $6.01 with and P/S ratio of 6.3. Immersion Corp. had an annual average earning growth of 3.2% over the past 10 years. GuruFocus rated Immersion Corp. the business predictability rank of 2-star.IMMR is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

We had a 1% decrease in revenues from continuing operations during the third quarter of 2010 as compared to the third quarter of 2009. The third quarter revenue decrease was primarily due to a 65% decrease in product sales and a 34% decrease in development contract revenues, partially offset by an 81% increase in royalty and license revenue primarily due to increased royalty and license fees from our mobility, integrated circuit, and gaming licensees. We had a 19% increase in revenues from continuing operations during the first nine months of 2010 as compared to the same period of 2009. The nine month

revenue increase was primarily due to a 75% increase in royalty and license revenue primarily due to increased royalty and license fees from our mobility, gaming, and integrated circuit licensees, partially offset by a 37% decrease in product sales and a 20% decrease in development contract revenues.

We categorize our geographic information into four major regions: North America, Europe, Far East, and Rest of the World. In the third quarter of 2010, revenue generated in North America, Europe, Far East, and Rest of the World represented 41%, 14%, 45%, and 0% of total revenue, respectively, compared to 35%, 12%, 51%, and 2% of total revenue, respectively, for the third quarter of 2009. The shift in revenues among regions was mainly due to a decrease in product sales in all regions as a result of the divestiture of certain medical simulation product lines in the first quarter of 2010. This was offset by an increase in royalty and license revenue in North America. Product sales decreases in the Far East were also partially offset by an increase in royalty and license revenue in the Far East. The increase in royalty and license revenue in the North America and the Far East was primarily due to increased royalty and license revenue from licensees of mobile devices, manufacturers of integrated circuits and gaming licensees.

In the first nine months of 2010, revenue generated in North America, Europe, Far East, and Rest of the World represented 37%, 17%, 44%, and 2%, respectively, compared to 46%, 17%, 36%, and 1%, respectively, for the first nine months of 2009. The shift in revenues among regions was mainly due to a decrease in product sales in North America, Europe and the Far East as a result of the divestiture of certain medical simulation product lines. This was offset by an increase in royalty and license revenue in the Far East and Europe. Product sales decreases in North America were also partially offset by an increase in royalty and license revenue in North America. The increase in royalty and license revenue in Europe was primarily due to increased royalty and license revenue from licensees of mobile devices. The increase in royalty and license revenue in the Far East was primarily due to increased royalty and license revenue from licensees of mobile devices, manufacturers of integrated circuits, automotive licensees, gaming licensees, and touchscreen licensees. The increase in royalty and license revenue in North America was primarily due to increased royalty and license revenue from licensees of gaming licensees, medical licensees, and touchscreen licensees.

Read the The complete Report

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10qk
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