Following the close of Tuesday’s regular session, Immersion Corporation, traded on NASDAQ:IMMR, released strong second quarter results. However, the recent acquisition of a controlling stake in Barnes & Noble Education (BNED) has led to the need to consolidate the new subsidiary’s financial results.
The consolidation of Barnes & Noble Education’s highly seasonal operations will lead to significant losses in the first half of each calendar year, followed by substantial profits in the second half.
The second quarter 2024 results for non-GAAP operating expenses and net income per share include contributions from Barnes & Noble Education, in addition to Immersion’s core licensing operations.
The company saw increased fixed fee license revenue and profitability in the first half of 2024 due to a litigation settlement and licensing agreements with Meta Platforms, Nintendo, and Samsung Electronics.
While a decrease in licensing revenues is expected in the second half of the year, Immersion anticipates a strong performance in the third quarter due to Barnes & Noble Education’s busiest period.
Immersion’s recent investment in Barnes & Noble Education has impacted its cash and liquid investments, leading to a significant gain in value within a short period.