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Immersion Corporation Message Board

  • aeroval aeroval Mar 20, 2013 5:49 PM Flag

    Earnings

    What you have to remember is this. Company is now profitable and has given guidance for 2013 based on existing business. Guidance includes no new licenses or expectations beyond the recent Samsung deal.
    When you have a 99% gross profit margin, and you announce a new deal (or deals with several OEM's and collaborators in discussions and about to release new products), the net proceeds of the deal go directly to EPS - which means an exciting ride for a while to come. There are still several big fish (in mobility alone) that have been freeloading, not including all the other industries and products that could utilize haptics, by means of a legitimate license.

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    • Agree with you 100%!! If they do nothing at all their EPS will be great not only this year but next year also!! Looks like they are just hitting their stride. Looks good.

      Sentiment: Strong Buy

    • The problem is landing the big fish. Just as every deal increases the PPS, every lawsuit decreases it. I don't think we can expect an avalanche of Samsungs out there waiting to give it up so easily. IMMR is probably going to have to blow a wad on lawyers.

      Given the current guidance, it appears to me to be trading around where it should.

      However, if you have an extra couple dozen million sitting around with nothing to do, and wish to immediately drive up the PPS, I won't complain.

      • 1 Reply to krool_shooz
      • I would generally agree with you that we should not expect an avalanche of settlements, and nothing will be easy with big OEMs. HOWEVER, Samsung deal changed the game going forward and IMHO has clearly tilted the playing field in IMMR favor. The trend is UP, and if Vic has good sense, the 44-49 mil number is soft (ie under promise and over deliver from here on out). With such a sea state change, who cares if he is sandbagging a bit, I sure hope he is. Shareholders are glad to see double digits again - my guess is the numbers are soft, while products using haptics seem to be increasing, product cycles seem to be decreasing, ASPs are rising, and more important - competition among OEMs to differentiate and 1 up the market is fierce. With no debt, legal warchest, profitable, and a 99% profit margin model, I like the view from here, for a while.

 
IMMR
10.03-0.1500(-1.47%)Apr 24 4:00 PMEDT