Actionable news
0
All posts from Actionable news
Actionable news in IMMR: Immersion Corporation,

Edited Transcript of IMMR earnings conference call or presentation 3-Aug-17 9:00pm GMT

SAN JOSE Aug 4, 2017 (Thomson StreetEvents) -- Edited Transcript of Immersion Corp earnings conference call or presentation Thursday, August 3, 2017 at 9:00:00pm GMT

================================================================================

Corporate Participants

================================================================================

================================================================================

================================================================================

* Aman Raj Gulani

B. Riley & Co., LLC, Research Division - Associate Analyst

Dougherty & Company LLC, Research Division - VP & Senior Research Analyst of Mobile Computing

================================================================================

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

Good day, everyone, and welcome to the Immersion Corporation Second Quarter 2017 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jennifer Jarman with the Blueshirt Group. Please go ahead, ma'am.

--------------------------------------------------------------------------------

Jennifer Jarman, The Blueshirt Group, LLC - Director [2]

--------------------------------------------------------------------------------

Thank you, Jamie. Good afternoon, and thank you for joining us today on Immersion's second quarter 2017 conference call. This call is also being broadcast live over the web and can be accessed from the Investor Relations section of the company's website at www.immersion.com.

With me on today's call is Vic Viegas, President and CEO; and Nancy Erba, CFO.

During this call, we may make forward-looking statements, which may include projected financial results or operating metrics, business strategies, litigations, anticipated future products, anticipated market demand or opportunities and other forward-looking topics. These statements are subject to risks, uncertainties and assumptions. Accordingly, actual results could differ materially.

For a listing of the risks that could cause this, please see our Form 10-Q filed with the SEC as well as the factors identified in the press release we issued today after market close.

Additionally, please note that during this call, we may discuss non-GAAP financial measures. For each non-GAAP financial measure discussed, a presentation of the most directly comparable GAAP financial measure and a reconciliation of the differences between the non-GAAP financial measure discussed and the most directly comparable GAAP financial measure is available in today's press release.

With that said, I'll turn the call over to Chief Executive Officer, Vic Viegas. Vic?

--------------------------------------------------------------------------------

Victor Viegas, Immersion Corporation - CEO, President and Director [3]

--------------------------------------------------------------------------------

Thanks, Jennifer, and thanks, everyone, for joining us this afternoon. To begin, I'd like to state that we remain resolute and focused on the execution of our long-term strategy to deliver value to shareholders and to enhance our customers' digital interactions through the sense of touch. During the second quarter, we saw the benefits of that focus through agreements executed with new customers as well as the renewal and expansion of agreements with existing customers. This includes a number of positive customer and market announcements that I would like to highlight to you.

In the mobile market, we licensed Onkyo Corporation, a leading Japanese electronics manufacturer to use Immersion's TouchSense Premium and TouchSense Lite in their smartphones. Additionally, momentum and social media applications continues to drive strong interest in haptics.

In the wearables market, we licensed Shenzhen-based Realtime Technology to embed Immersion's TouchSense Premium solution in Realtime's Pacewear smart wearable products.

In the gaming VR and AR market, we have seen great interest in our TouchSense Force tools and are pleased with our success partnering with game developers with the Nintendo Switch platform. We're excited to announce a multi-year IP license agreement with Mitsubishi Electric Corporation for their automotive solutions. The automotive market continues to see the value of haptics and entertainment navigation and climate controls.

And in the mobile ads market, we have joined forces with leading video ad serving platform SpotX. Together, we aim to empower advertisers with high impact haptic experiences. The benefits of mobile ads with haptics were once again showcased at the Cannes Lions International Festival of Creativity.

While expansion and renewals of customer agreements are our primary focus, we remain committed to the protection of our intellectual property, which we believe is in the best interest of our shareholders. Over the course of our company's 24-year history, we've taken very seriously our obligation to our shareholders, customers and employees. As always, we continued to review our strategic options. Our goal is to achieve fair and appropriate value for the years of investment and innovation that have built our leading haptic patent portfolio and the expertise commensurate with that. We believe, we are on the right path.

I will share more with you regarding our recent business developments, enforcement actions and outlook but first I'll turn the call over to Nancy, to discuss the details of our second quarter 2017 financial results. Nancy?

--------------------------------------------------------------------------------

Nancy Erba, Immersion Corporation - CFO [4]

--------------------------------------------------------------------------------

Thanks, Vic. Revenues for the June quarter were $7 million, down 11% from revenues of $7.9 million in the year-ago period, primarily the result of decreased revenue from our gaming and medical license fees, partially offset by increases from our mobility and automotive license fees.

Revenues from royalties and licenses of $6.8 million were down 11% from $7.6 million in the second quarter of 2016. Of these amounts in the second quarter of 2017, variable royalties based on shipping volumes and per unit pieces totaled $5 million. And fixed payment license fees totaled $1.8 million, this compares to variable royalties of $5.6 million and fixed license fees of $2 million in the prior-year period.

While revenue mix for line of business is expected to fluctuate on the quarterly basis due to seasonality patterns for the second quarter of 2017, a breakdown by line of business as a percentage of total revenues was as follows: 44% from mobility, 25% from gaming, 22% from auto and 9% from medical.

Looking at year-over-year trends, mobility revenues were up 5% from the second quarter of 2016, principally due to an increase in revenue related to shipment volumes and license fees from existing customers.

Gaming...


More