Shares of Immersion Corporation (NASDAQ:IMMR), provider of haptics touch technology, on August 17, 2021, plummeted by 11%. The company gave incredible quarter two earnings where revenues surged to 93% year over year, reaching $11 million, a 14% growth in quarter one and declining by 35% in the year-ago quarter.
The small-cap share has a market capitalization of $204 million has the sale seems confusing despite good results and a sanguine view of the management. Immersion shares are down by 40% year to date, trailing the broader market.
Its operating expenses dropped by 23% year over year, leading to net income reaching $5.3 million for the quarter.
CEO Jared Smith said that results demonstrate the continued success of partners and customers in developing and delivering haptic products in gaming, automotive, and mobile market segments.
The company provides game console manufacturers for Sony, Nintendo, and Microsoft. Immersion management expressed content on Sony’s PlayStation 5 exceeding 10 million.
The firm also said that the fast-growing maker of interactive fitness bikes, Peloton Interactive, implemented a technology license during the quarter. Investors must pay heed to the fact that Immersion hasn’t demonstrated growth in the last two decades and it has been flat for the last five years. However, if the company continues to expand the haptic technology, the stock may rise higher.