IMMERSION CORPORATION Reports Third Quarter Earnings Results for FY2023
November 26, 2023
🌥️Earnings Overview
IMMERSION CORPORATION ($NASDAQ:IMMR) reported their earnings results for the third quarter ending November 13, 2023 of their FY2023 on September 30th. Total revenue for the period was USD 9.5 million, a significant 32.3% decline compared to the same period in the previous year. Net income for the quarter dropped by 65.2%, amounting to USD 2.7 million.
Stock Price
The company’s stock opened at $6.5 and closed at $6.3, representing a 6.4% drop from its prior closing price of $6.7. This decrease in stock price was the result of the company’s lower-than-expected net income and revenues for the quarter. The lower earnings were attributed to an increasingly competitive market, in which the company has seen its market share decrease by about 10%. It is also facing increased pressure from rivals such as Apple Inc., Google, and Microsoft who are rapidly expanding their product offerings and entering new markets.
Despite these challenges, IMMERSION CORPORATION remains committed to its long-term goals and strategies. The company is investing heavily in research and development and is exploring new opportunities to expand into new markets and regions. Furthermore, the company is committed to reducing costs and increasing efficiency in order to improve profitability over time. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Immersion Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 32.7 | 37.69 | 115.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Immersion Corporation. More…
| Operations | Investing | Financing |
| 20.69 | -13.19 | -15.56 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Immersion Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 204.68 | 35.25 | 5.26 |
Key Ratios Snapshot
Some of the financial key ratios for Immersion Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.8% | -30.6% | 58.8% |
| FCF Margin | ROE | ROA |
| 63.3% | 7.1% | 5.9% |
Analysis
At GoodWhale, we have conducted an analysis of IMMERSION CORPORATION‘s fundamentals. Our Star Chart shows that IMMERSION CORPORATION is classified as a ‘cow’, a type of company which has a track record of paying out consistent and sustainable dividends. This makes the company an interesting investment option for investors who are looking for stable income streams. IMMERSION CORPORATION’s overall score is strong in the areas of asset and profitability, while being medium in dividend and weak in growth. The company also has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of paying off debt and funding future operations. More…
Peers
The competition among Immersion Corp, Inky Inc, Claranova SA, and Digitalist Group Oyj is intense. Each company is striving to develop the best technology and to provide the most user-friendly products. They are all fighting for market share and for customer loyalty.
– Inky Inc ($OTCPK:INKI)
Inky Inc has a market cap of 5.6M as of 2022. The company is a provider of email security and anti-phishing solutions. Inky’s technology uses artificial intelligence and machine learning to protect organizations from email-based attacks.
– Claranova SA ($LTS:0N6K)
As of 2022, Claranova SA has a market cap of 114.04M and a Return on Equity of 9.21%. Claranova SA is a leading provider of digital services and software. The company offers a wide range of products and services, including Claranova Connect, a digital platform that allows businesses to connect with customers and partners; Claranova Studio, a creative agency that provides branding, design, and marketing services; and Claranova Data, a data management and analytics platform. Claranova also provides a variety of software products, including Claranova Connect, Claranova Studio, and Claranova Data.
– Digitalist Group Oyj ($LTS:0KGR)
Digitalist Group Oyj is a provider of digital transformation solutions and services. It offers a range of services, including consulting, software development, and managed services. The company serves customers in a variety of industries, including manufacturing, automotive, retail, and healthcare.
Summary
Investors in Immersion Corporation were met with grim news when the company reported its earnings results for the third quarter of FY2023, ending on November 13, 2023. The company reported a total revenue of USD 9.5 million, a 32.3% decrease compared to the same period of the previous year. Net income decreased 65.2% year over year to USD 2.7 million. In response, the stock price dropped on the same day.
This result raises several questions for potential investors, such as whether the company can turn around its performance or if this is a sign of further troubles ahead. Investors should carefully evaluate the company’s current financial and operational health before making any investment decisions.
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