Shares of Immersion (NASDAQ:IMMR) got crushed today, down by 23% as of 11:50 a.m. EDT, after the developer of haptic technologies reported second-quarter earnings. An unexpected decline in revenue caught investors off guard.
Revenue in the second quarter fell to $6.1 million, while analysts were expecting sales to increase to $9.6 million. That led to a net loss of $7.8 million, or $0.25 per share. On a non-GAAP basis, Immersion lost $5.4 million, or $0.18 per share. The consensus estimate called for an adjusted net loss of $0.14 per share. The company finished the quarter with $136.7 million in cash and investments on the balance sheet.
Immersion signed license agreements with Stanley Electric, Toyodenso, and Calsonic Kansei during the quarter. The company announced a confidential settlement with Fitbit last month, shortly after the close of the second quarter. That suit had been initially filed almost exactly a year prior.
Despite a disappointing second quarter, Immersion reaffirmed its full-year revenue guidance, which is expected in the range of $108 million to $118 million, and should translate into non-GAAP net income of $59 million to $67 million. If Immersion is able to win more suits, its top line could come in better than expected. "Our guidance remains independent of possible additional litigation outcomes currently ongoing in our largest Mobility line of business," CFO Nancy Erba noted.