On November 13, 2023, Immersion Corp (IMMR, Financial) released its 8-K filing, disclosing its financial results for the third quarter ended September 30, 2023. The company, a leader in haptic technology, reported a decrease in total revenues from $14.0 million in the third quarter of 2022 to $9.5 million in the same period of 2023. This decline was reflected in both GAAP and non-GAAP net income figures, with GAAP net income falling from $7.7 million, or $0.23 per diluted share, in Q3 2022 to $2.7 million, or $0.08 per diluted share, in Q3 2023. Non-GAAP net income also decreased to $4.0 million, or $0.12 per diluted share, compared to $8.5 million, or $0.25 per diluted share, in the prior year's quarter.
Financial Performance and Shareholder Returns
Despite the decline in net income, Immersion Corp (IMMR, Financial) demonstrated a commitment to shareholder returns by increasing its quarterly dividend by 50 percent to $0.045 per share. The company also repurchased 485,061 shares at an average price of $6.86 per share, which represents 1.5% of shares outstanding as of September 30, 2023. Eric Singer, Chairman and CEO of Immersion Corp (IMMR), expressed satisfaction with the company's financial performance and its robust balance sheet, which he believes positions the company well in the current economic environment.
“We are continuing our efforts to ensure that our intellectual property for the AR/VR/metaverse market is recognized by the recent filing of a second legal complaint... We look forward to prosecuting this case and seeking out other opportunities to monetize our intellectual property, either through the execution of licenses or by proactive enforcement,” said Eric Singer.
Balance Sheet and Income Statement Highlights
The balance sheet of Immersion Corp (IMMR, Financial) shows an increase in stockholders' equity by $11.7 million year-to-date, while the company provided $6.2 million and $6.4 million in stock repurchases and dividends, respectively. Cash and cash equivalents stood at $28.7 million, with investments totaling $151.9 million across current and noncurrent assets. The company's total assets amounted to $204.7 million as of September 30, 2023.
On the income statement, royalty and license revenues accounted for the majority of the total revenues at $9.5 million. GAAP operating expenses slightly decreased to $3.0 million in Q3 2023 from $3.1 million in Q3 2022, while non-GAAP operating expenses were reduced from $2.3 million to $2.0 million over the same period.
Outlook and Intellectual Property Focus
Immersion Corp (IMMR, Financial) is actively focusing on protecting and monetizing its intellectual property, as evidenced by the filing of a second patent lawsuit against Meta Platforms, Inc. The company's leadership is optimistic about pursuing opportunities to enhance shareholder value through strategic capital allocation and a strong balance sheet.
Investors and potential members of GuruFocus.com interested in the detailed financials and the reconciliation of GAAP to non-GAAP financial measures can find more information in the tables provided in the company's press release.
Immersion Corp (IMMR, Financial) remains a leading innovator in the haptic technology space, and its financial strategies and intellectual property focus are key areas to watch for value investors.
For further details on Immersion Corp (IMMR, Financial)'s financial results, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Immersion Corp for further details.
