Immersion (NASDAQ:IMMR) Corporation (NASDAQ:IMMR), a developer of touch feedback technology, has announced a change to its fiscal year-end. The company's Board of Directors approved a shift from a December 31 year-end to an April 30 year-end, effective immediately. This decision was disclosed in a Form 8-K filed with the Securities and Exchange Commission today.
The adjustment in the fiscal calendar will prompt Immersion to file a transition report on Form 10-QT for the period starting January 1, 2024, and ending April 30, 2024. The company, which is incorporated in Delaware and headquartered in Aventura, Florida, has not provided a specific reason for this change in its fiscal accounting period.
Immersion's Chief Financial Officer, J. Michael Dodson, signed off on the filing, underscoring the formal adoption of the new fiscal year timeline by the organization's governance structure. The change in fiscal year-end is a notable administrative update for investors and market analysts who track the financial performance of Immersion Corporation.
The company, known for its computer peripheral equipment, has been listed under the name IMMERSION CORP since a former name change from Immersion Human Interface (NASDAQ:TILE) Corp in 1998. Immersion's common stock is traded on The Nasdaq Global Market, where it will continue to operate under the ticker symbol IMMR.
This move to a new fiscal year-end is a strategic decision that companies sometimes undertake for various reasons, including aligning their financial reporting periods with industry norms or operational cycles. However, the company's filing did not elaborate on the strategic considerations behind this decision.
In other recent news, Immersion Corporation has seen a boost in its financial performance, with Craig-Hallum increasing its price target for the company from $10.00 to $14.00 and maintaining a Buy rating. This comes after Immersion reported robust second-quarter results, largely driven by increased royalty and license revenues from Samsung (KS:005930) and BNED, resulting in approximately $99 million in total revenue for the month of June. Immersion's recent investment in BNED, where it holds a 42% stake, has also led to unrealized gains of around $80 million.
The company has also been exploring mergers and acquisitions opportunities, with a solid cash reserve of $126.5 million. BWS Financial has retained its Buy rating for Immersion, following strong fourth quarter results driven by increased automotive and video game revenue.
On the operational front, Immersion has made significant strides, appointing BDO USA, LLP as its new independent registered public accounting firm following the resignation of Frank, Rimerman + Co. LLP. The company has also expanded its business interests into the education sector with a substantial asset acquisition from Barnes & Noble Education, Inc.
InvestingPro Insights
As Immersion Corporation (NASDAQ:IMMR) transitions to a new fiscal year-end, investors may find additional context from recent financial metrics and analyst insights. According to InvestingPro data, IMMR's market capitalization stands at $286.91 million, with a notably low P/E ratio of 4.28, suggesting the stock may be undervalued relative to its earnings.
An InvestingPro Tip indicates that analysts anticipate sales growth for Immersion in the current year, which could be a positive sign as the company adjusts its fiscal reporting period. Additionally, the company has been profitable over the last twelve months, with a strong gross profit margin of 74.81% as of the last twelve months ending Q2 2024.
However, another InvestingPro Tip cautions that the company is quickly burning through cash, which investors should monitor closely, especially in light of the fiscal year change. For those seeking a deeper understanding of Immersion's financial position, InvestingPro offers 6 additional tips that could provide valuable insights during this transitional period.
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