Immersion shares closed 4.6 percent lower Friday at $14.27 despite...
Immersion shares closed 4.6 percent lower Friday at $14.27 despite the company reporting stronger results for Q2 than a year ago. Revenue jumped 58 percent to $10.2 million, with royalty and license revenue soaring 68 percent to $10 million. It…
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also had a $776,000, or 3 cents a share, profit, versus a loss of $2.2 million, or 8 cents a share. Immersion’s legal expenses to protect its patents continued to pile up. The litigation-related expense for Q2 was $470,000, Chief Financial Officer Paul Norris said on an earnings call Thursday. As its lawsuit against HTC proceeds in U.S. District Court in Wilmington, Del., Immersion estimated its expense for that litigation will be in the $1-1.5 million range over the remaining six months of the year, he said. Immersion had terminated an International Trade Commission investigation into the claimed infringement of certain Immersion patents by HTC and opted to focus on its patent infringement suit against HTC in the Delaware court. The only remedy available to Immersion via the ITC would have been an exclusion order against HTC preventing the import of infringing devices into the U.S., Immersion said then. But the remedy available in U.S. District Court would include damages, attorneys’ fees and potentially injunctive relief, said Immersion. Judge Richard Andrews denied HTC’s request to stay the case July 11, according to court documents. A trial will begin “as early as next year,” Immersion CEO Vic Viegas said Thursday. Immersion saw “renewed enthusiasm” for haptics technology in the game market with the announcement of new consoles from Sony and Microsoft, as well as new peripherals coming out of last month’s E3, he said. “In addition to representing a new peripheral opportunity” for Immersion, the PS4 may also provide an additional “revenue opportunity for us” if the console is released with haptics technology as “contemplated under our existing agreement” with Sony, he said. Immersion is also “optimistic” that Microsoft will offer haptics in the Xbox One, he said. “We will know more” about the Microsoft and Sony-related opportunity as the consoles ship later this year, he said. Meanwhile, PowerA, another licensing partner of Immersion’s, will ship a new Moga Pro mobile game controller that will feature Immersion haptics, he said. Gaming accounted for 22 percent of Immersion Q2 revenue, said Norris. That was down from 27 percent in Q2 last year. The gaming revenue included ongoing licensing fees and revenue secured through its royalty licensing compliance program, said Norris. Mobility remained Immersion’s largest segment, accounting for 65 percent of revenue, up from 47 percent. Auto revenue dipped to 6 percent from 7 percent of revenue, while medical fell to 7 percent from 13 percent.