Announces Special Dividend and $50 Million
Stock Repurchase Program
Focus on driving multi-year step function
increase in valuation
Immersion Corporation (NASDAQ: IMMR), a leading developer and
provider of technologies for haptics, today reported management
changes, a special cash dividend and a new stock repurchase
program.
Effective immediately, Executive Chairman Eric Singer has been
appointed President and CEO and will continue to serve as Chairman
of the Board. The Board of Directors believes Eric Singer’s
significant experience in operations, transactions and capital
allocation as well as his deep technology experience will help to
drive long-term shareholder value creation. Francis Jose will
return to the role of General Counsel and oversee the Company’s
ongoing intellectual property licensing efforts.
Immersion’s Board of Directors has also declared a special
one-time dividend of 10 cents per share, based on the Company’s
strong operating performance in 2022. This dividend is in addition
to a new recently declared quarterly dividend program of 3 cents
per share. In addition, Immersion’s Board of Directors approved a
new stock repurchase program of up to $50.0 million for 2023. This
new stock repurchase program replaces the stock repurchase program
that had been in place in 2022 under which the Company repurchased
a total of 2,542,065 shares (approximately 7.4% of shares
outstanding as of December 31, 2021).
Eric Singer, President and CEO, stated, “Immersion has a unique
set of assets, and the Board is redoubling its efforts to create a
step function increase in value over the long term. Over the past
two years, we have driven a significant increase in profitability,
helping to fortify Immersion’s balance sheet with record levels of
cash and investments. We now have multiple levers to drive
shareholder value concurrent with our workstreams around
monetization of our intellectual property, which encompasses
entering new license arrangements and renewing existing licenses as
well as our targeted litigation strategy, including but not limited
to our recent lawsuit against Meta Platforms (NASDAQ: META). Our
special dividend and stock repurchase program underscore our
financial flexibility to return value to shareholders in a very
uncertain macro environment, and we intend to leverage our
financial resources to continue to increase shareholder value.”
“We thank Francis Jose for his work as CEO over the past 16
months. I look forward to continuing to work with the team on our
core priorities in the coming year,” Singer added.
The special dividend of $0.10 per share will be paid on January
30, 2023 to shareholders of record on January 15, 2023. In
addition, the Company’s first quarterly dividend will be paid on
January 30, 2023 to shareholders of record on January 15, 2023.
Future quarterly dividends will be subject to further review and
approval by the Board in accordance with applicable law. The Board
reserves the right to adjust or withdraw the quarterly dividend in
future periods as it reviews the Company’s capital allocation
strategy from time to time.
The stock repurchase program allows for the repurchase of up to
$50 million of Immersion common stock for a period of up to 12
months. The timing, pricing and sizes of any repurchases will
depend on a number of factors, including the market price of the
Company’s common stock and general market and economic conditions.
The stock repurchase program does not obligate the Company to
repurchase any dollar amount or number of shares, and the program
may be suspended or discontinued at any time.
About Immersion
Immersion Corporation (NASDAQ: IMMR) is a leading innovator of
touch feedback technology, also known as haptics. The company
invents, accelerates, and scales haptic experiences by providing
technology solutions for mobile, automotive, gaming, and consumer
electronics. Haptic technology creates immersive and realistic
experiences that enhance digital interactions by engaging users'
sense of touch. Learn more at www.immersion.com.
Forward-looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). The
forward-looking statements involve risks and uncertainties.
Forward-looking statements are identified by words such as
“anticipates,” “believes,” “expects,” “intends,” “may,” “can,”
“will,” “places,” “estimates,” and other similar expressions.
However, these words are not the only way we identify
forward-looking statements. Examples of forward-looking statements
include any expectations, projections, or other characterizations
of future events, or circumstances, including but not limited to
statements about the anticipated impact of the appointment of Eric
Singer as President and CEO, the impact of the Board’s efforts to
create a step function increase in value over the long term, the
Company’s intent to leverage its financial resources to continue to
increase shareholder value, the financial strength of the Company
and commitment to return capital to shareholders in a meaningful
way, the implementation of the stock repurchase program, and the
Company’s focus on entering new license arrangements and renewing
existing licenses, protecting its intellectual property and capital
allocation to drive long-term shareholder value.
Because forward-looking statements relate to the future, they
are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Actual results could differ materially from
those projected in the forward-looking statements, therefore we
caution you not to place undue reliance on these forward-looking
statements. Important factors that could cause our actual results
and financial condition to differ materially from those indicated
in the forward-looking statements include, among others, the
following: the inability to predict the outcome of any litigation,
the costs associated with any litigation and the risks related to
our business, both direct and indirect, of initiating litigation,
the effects of the COVID-19 global pandemic on the Company and its
business, and on the business of its suppliers and customers;
unanticipated changes in the markets in which the Company operates;
the effects of the current macroeconomic climate (especially in
light of the ongoing adverse effects of the COVID-19 global
pandemic); delay in or failure to achieve adoption of or commercial
demand for the Company’s products or third party products
incorporating the Company’s technologies; the inability of
Immersion to renew existing licensing arrangements, or enter into
new licensing arrangements on favorable terms; the loss of a major
customer; the ability of Immersion to protect and enforce its
intellectual property rights; the risk that the Company may not
successfully repurchase stock under its stock repurchase program;
and other factors. For a more detailed discussion of these factors,
and other factors that could cause actual results to vary
materially, interested parties should review the risk factors
listed in Immersion’s Annual Report on Form 10-K for 2021 and in
its most recent Quarterly Report on Form 10-Q which are on file
with the U.S. Securities and Exchange Commission. Any
forward-looking statements made by us in this press release speak
only as of the date of this press release, and Immersion does not
intend to update these forward-looking statements after the date of
this press release, except as required by law.
Immersion, and the Immersion logo are trademarks of Immersion
Corporation in the United States and other countries. All other
trademarks are the property of their respective owners. The use of
the word “partner” or “partnership” in this press release does not
mean a legal partner or legal partnership.
(IMMR – C)
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version on businesswire.com: https://www.businesswire.com/news/home/20230103005152/en/
Investor Contact: Aaron Akerman Immersion Corporation
514-987-9800 ext. 5110 aakerman@immersion.com
Immersion (NASDAQ:IMMR)
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