Immersion Corp (IMMR) Reports Solid FY2023 Earnings with Increased Net Income

In This Article:

  • Revenue: FY2023 total revenues were $33.9 million, a decrease from $38.5 million in FY2022.

  • Net Income: GAAP net income for FY2023 was $34.0 million, or $1.04 per diluted share, up from $30.7 million in FY2022.

  • Non-GAAP Results: Non-GAAP net income for FY2023 stood at $38.5 million, or $1.18 per diluted share.

  • Share Repurchase: Immersion repurchased 1,217,774 shares in 2023, representing 3.9% of shares outstanding.

  • Liquidity: Cash, cash equivalents, and short-term investments totaled $160.4 million as of December 31, 2023.

  • Dividend: A quarterly dividend of $0.045 per share will be paid on April 19, 2024.

On March 7, 2024, Immersion Corp (NASDAQ:IMMR) released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. Immersion Corp, a pioneer in haptic technology, reported a year of solid financial performance despite a slight decline in annual revenue. The company's focus on enforcing intellectual property rights and renewing license deals has been a key driver of its financial achievements.

Immersion Corp (IMMR) Reports Solid FY2023 Earnings with Increased Net Income
Immersion Corp (IMMR) Reports Solid FY2023 Earnings with Increased Net Income

Financial Performance and Strategic Execution

Immersion Corp's revenue for the fourth quarter of 2023 was $10.4 million, up from $9.2 million in the same quarter of the previous year. The company's GAAP net income for the quarter was $16.0 million, or $0.49 per diluted share, a decrease from $19.7 million in the fourth quarter of 2022. Non-GAAP net income for the quarter was slightly higher at $16.9 million, or $0.52 per diluted share. The company also repurchased 319,017 shares at an average price of $6.52 per share during the quarter.

For the full year, Immersion's revenues were $33.9 million, a decrease from $38.5 million in 2022. However, the company's net income for 2023 was $34.0 million, or $1.04 per diluted share, an increase from $30.7 million, or $0.92 per diluted share, for 2022. Non-GAAP net income for 2023 was $38.5 million, or $1.18 per diluted share, compared to non-GAAP net income for 2022 of $34.5 million, or $1.03 per diluted share.

Immersion's Chairman & CEO, Eric Singer, highlighted the company's steady execution and accomplishments throughout the year, emphasizing the strategic allocation of capital and the increase in stockholder's equity to $183.1 million. Singer expressed confidence in the company's strong balance sheet as it enters 2024.

"2023 was a year of steady execution and accomplishment for Immersion as we maintained our efforts to enforce our intellectual property, renew license deals, and thoughtfully allocate capital. We returned $15.7 million to shareholders via buybacks and dividends during the year while also increasing our stockholders equity to $183.1 million, or $5.81 per share, as of December 31, 2023. This is an increase of over $27.4 million from $157.7 million, or $4.89 per share, at the end of 2022."