Q3 2020 Immersion Corp Earnings Call
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Please standby.
Good day, ladies and gentlemen, and welcome to the Immersion Corporation Q3 2020 earnings call. This conference is being recorded at this time I would like to hand, the conference over to Mr. Aaron Anchorman. Please go ahead Sir.
Good afternoon, and thank you for joining us today on Immersions third quarter 2020 conference call.
These forward looking statements, even if new information becomes available in the future except as required by law.
It.
While driving revenue growth in the coming quarters as well as longer time to increase the adoption of our innovations and attracting new customers and partners to the original ecosystem.
We are pleased to share a strong financial performance in the third quarter during which we were profitable on both the gap and non-GAAP basis and generated positive free cash flow.
And the improvements in our operating model, we expect to go or profitability and free cash flow in the coming quarters.
Next I'd like to provide an update on your progress in the automotive mobile and gaining market segments.
Later gaming and to replace worn out controllers to do offense controllers are already available at retail ahead of the Playstation five console launch.
We're excited to renew our commercial partnership and look forward to continued collaboration and bringing haptic gaming products to market.
As to 73% of revenues in the third quarter last year.
Our revenue mix for each line of business typically fluctuate quarterly due to seasonality patterns and for the third quarter of 2020, a breakdown by line of business as a percentage of total revenues was as follows.
74% from mobility, 14% from gaining 12% from automotive.
Gross profit was 6.7 point $6 million compared to gross profit of $10.6 million in the same quarter of 2019.
Turning to operating expenses.
Whichever you across all of our markets and our current expectations for the fourth quarter surpassed the expectations that we had prior to the COVID-19 pandemic.
From a profitability standpoint. This was our best quarterly performance in the last two and a half years and we expect to see continued improvements in our profitability, both a gap and non-GAAP be interested in coming quarters.
Let's move to the balance sheet over all our balance sheet remains strong be generated $1.9 million a positive cashflow in the third quarter, which increased our cash and cash equivalents balance of $256 million as of September 30th 2020.
In the year somewhere.
I'm going to be unique to Q3 to drive it lower and.
Hi, Nice, let's do that you talked about and the ZIP line and as it relates to.
We expect to continue to see that type of adoption.
In in gaming, Yeah, there's a lot of interactive effect, but it's also.
Beyond both non-GAAP and GAAP basis, that's rolling.
Broken and positive cash flow. So we're we're looking forward to Q4 and as I also said earlier.
We are expecting Q4 to be better than we expected it to be before the pandemic it.
Okay and also on your.
Okay.
Oh go ahead I'm sorry.
Regarding regarding granted.
So again very excited and honored to be appointed as interim CEO and I have come I come from them and so I'm already part of the company I I am not going to be driving the company.
Different directions strategically.
Secondly, on an interim basis, we have a.
This time there are no further questions I'll hand, the conference back Mr. Smith for any additional or closing remarks.
Thank you operator, and thank you all for joining us on this call today as I noted earlier I'm very excited for the opportunity to repeat emerging that'd be interim CEO I.
Believe that we're in a great position to drive adoption of ethics and a core markets.
Continue to grow the company.
We look forward to sharing updates on this effort future calls.
Thank you and goodbye.
And everyone that just seems like today's conference. Thank you all for your participation today.
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