Shares of Immersion Corp. (IMMR), the haptic or touch technology and licensing company run by interim CEO Carl Schlachte, plunged 24.4% after the company posted a narrower net loss in the second quarter of 2018 that missed analyst expectations.

Immersion shares fell $3.45 to $10.78 Friday, Aug. 3 in trading. They have traded between 5.76 and $17.70 over the past year.

San Jose, California-based Immersion posted a net loss of $7.8 million or 25 cents a share, versus a net loss of $14.8 million, or 51 cents a share a year ago.

"Immersion reported revenue/EPS of $6.1MM/($0.18) vs. our estimate of $9.1MM/ ($0.11) and consensus of $9.6MM/($0.09)," said Charles Anderson, an analyst at Dougherty & Co. in a note to investors.

Anderson added that "calling quarters for Immersion is going to be extremely difficult given new accounting standards will mean deals will often be recognized in full in the quarter they are signed vs. straight-line over time. In the case of this report what it tells us is that there are deals of some consequence to be signed and recognized in 2H, but getting the exact timing right may be difficult."

In November 2017, Immersion ousted its former CEO Vic Viegas and began an overhaul to reign in costs. At the same time, the company reduced its demands in negotiations with potential licensees allowing it to reach a settlement with Apple Inc., that Anderson had estimated as $10 million a year over 10 years.

In the second quarter, Immersions’s total costs and expenses fell to $14.4 million from $21.9 million, a year ago. General and administrative costs fell to $10.6 million from $15.6 million, a year ago, while sales and marketing costs fell to $1.57 million from $3.46 million.

The company’s revenue fell to $6.14 million from $7.03 million. The company’s cost of revenue was negligible at $94,000 in the latest quarter versus $54,000 a year ago.

Immersion ended the quarter with cash, cash equivalents and short-term investments of $136.7 million, versus $139 million as of March 31.

"We are very pleased with the progress we continued to make in the second quarter along both customer and technology fronts, positioning the company well for the remainder of 2018 and into next year," said Schlachte in a statement.

"Our culture of driving change and influencing the haptic ecosystem is one that will continue to push us to challenge ourselves and think innovatively, in order to bring the best technology to market for our customers.”

Schlacte also reiterated Immersion’s previously provided annual revenue guidance range of $108 million to $118 million.

“We continue to anticipate Non-GAAP net income of $59 million to $67 million,” Nancy Erbas, Immersion’s CFO said in a statement. “Our guidance remains independent of possible additional litigation outcomes currently ongoing in our largest Mobility line of business.”

—To reach the reporter responsible for this story please contact Dan Lonkevich at 707 318-7899 or dan@thepatentinvestor.com