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The Markets
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Medical technology & services

Immersion shares jump on positive outlook as it narrows fourth quarter loss

Immersion narrowed its fourth quarter loss even as revenue fell

Immersion Corporation (NASDAQ:IMMR) shares surged in US pre-market trade after saying it expects return to profit in 2018 after reporting a full year loss.

The developer of touch feedback technology said it expects annual revenue of US$80mln to US$95mln and adjusted net income of US$35mln to US$46mln.

That compares last year’s revenue of US$35mln, down 39% on 2016, and an adjusted net loss of US$28.6mln, which is wider than the loss of US$5mln a year earlier.

In the fourth quarter revenue fell 26% on the previous year to US$6.9mln but the adjusted net loss narrowed to US$6.2mln from US$7.9mln.

The unadjusted net loss included a US$26.8mln provision relating to the US tax reform but it still fell to US$12.3mln from US$38.1mln.

Shares jumped 16.4% to US$10.4 each ahead of the opening bell.

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