Immersion (IMMR) Transition Period summary

Executive summary

• Acquired a controlling interest in Barnes & Noble Education (BNED) on June 10, 2024, diversifying into education and expanding offerings and customer reach.

• Now operates two reportable segments: Immersion (IP licensing) and BNED (bookstore operations and educational content distribution).

• Fiscal year-end changed to April 30 to align with BNED, impacting comparability of quarterly results.

• Reported total revenues of $616.2 million for the quarter ended October 31, 2024, up from $7.0 million in the prior year quarter due to BNED consolidation.

• GAAP net income attributable to stockholders was $27.2 million ($0.83 per diluted share), up from $7.0 million ($0.21 per diluted share) in the prior year quarter.

Financial highlights

• Total revenues for the three months ended October 31, 2024, were $616.2 million, up from $6.98 million in the comparable prior period due to BNED consolidation.

• Net income for the three months ended October 31, 2024, was $55.8 million, compared to $7.0 million in the prior year period.

• Immersion segment revenue for the three months ended October 31, 2024, was $14.1 million, up 102% year-over-year, driven by new mobility license agreements.

• BNED contributed $602.1 million in revenue for the three months ended October 31, 2024.

• Operating income for the three months ended October 31, 2024, was $64.4 million, compared to $3.1 million in the prior year period.

Outlook and guidance

• BNED plans to accelerate adoption of its First Day Complete affordable textbook access program and expand e-commerce and digital offerings.

• Management expects continued growth in fixed fee license revenue and further scaling of BNED's digital and inclusive access programs.

• Company will continue to pursue thoughtful capital allocation to build business and create long-term shareholder value.

• Board declared a special cash dividend of $0.245 per share, payable January 24, 2025, with future dividends subject to review.