Immersion Corporation (IMMR) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $38.15 million, or $ 1.32 a share in the quarter, against a net profit of $1.14 million, or $0.04 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $7.90 million, or $0.27 a share compared with a net profit of $2.10 million, or $0.07 a share in the last year period. Revenue during the quarter plunged 43.92 percent to $9.29 million from $16.57 million in the previous year period. Gross margin for the quarter contracted 6 basis points over the previous year period to 99.38 percent.
Operating loss for the quarter was $11.21 million, compared with an operating income of $1.29 million in the previous year period.
"2016 was a year of exciting innovation, with wide-spread adoption of haptics across all of our target markets and a broadening of our customer base," said Vic Viegas, chief executive officer of Immersion. "We are pleased with our fiscal year results, having achieved our goals for both revenue and non-GAAP net income during a year in which it was also critical that we dedicate resources and attention to protecting and preserving our intellectual property. We remain focused on leveraging our three key strategic assets - our culture of innovation, our haptic know-how and our broad patent portfolio, as we continue to execute on our long-term plan of driving broad adoption of our haptic technologies across existing and emerging markets."
For financial year 2017, Immersion Corporation expects revenue to be in the range of $38 million to $42 million. The company projects adjusted net loss to be in the range of $23 million to $32 million. It company projects diluted loss per share to be in the range of $0.76 to $1.05 on adjusted basis.
Working capital increases sharply
Immersion Corporation has recorded an increase in the working capital over the last year. It stood at $73.01 million as at Dec. 31, 2016, up 35.83 percent or $19.26 million from $53.75 million on Dec. 31, 2015. Current ratio was at 4.47 as on Dec. 31, 2016, down from 4.54 on Dec. 31, 2015. Days sales outstanding went up to 7 days for the quarter compared with 3 days for the same period last year.
At the same time, days payable outstanding went up to 4720 days for the quarter from 322 for the same period last year.
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