Immersion (NASDAQ:IMMR) Corporation (NASDAQ:IMMR), a company specializing in computer peripheral equipment, announced today that its Board of Directors has approved a special cash dividend. The dividend of $0.245 per share will be payable on January 24, 2025, to shareholders of record as of January 10, 2025.
This declaration reflects the company's current capital allocation strategy and is subject to change as the Board may adjust or withdraw future dividends based on periodic reviews.
In addition to the dividend announcement, Immersion Corporation noted a change in its fiscal year-end from December 31 to April 30. With this change, the company expects to file its next Quarterly Report on Form 10-Q and release financial results for the quarter ended October 31, 2024, in December 2024.
This news comes as part of a regular SEC filing, specifically a Form 8-K, which informs the public of events that shareholders should know about. The forward-looking statements within the filing indicate Immersion Corporation's expectations regarding the timing of its next financial report but caution that actual events or results could differ materially from those projected.
The announcement of the special dividend and the fiscal year-end change are part of Immersion Corporation's ongoing efforts to manage its finances and provide value to its shareholders. The company has emphasized that future dividends will be contingent upon further Board approval and compliance with applicable laws.
This SEC filing, signed by Chief Financial Officer J. Michael Dodson, ensures transparency and provides shareholders with up-to-date information on Immersion Corporation's financial strategies and decisions.
In other recent news, Immersion Corporation has reported robust financial performance, with increased royalty and license revenues from Samsung (KS:005930) and BNED, resulting in approximately $99 million in total revenue for June. The company's recent investment in BNED, where it holds a 42% stake, has also led to unrealized gains of around $80 million.
Analysts at Craig-Hallum have increased their price target for the company from $10.00 to $14.00, maintaining a Buy rating, reflecting confidence in the company's financial health.
Another noteworthy development is Immersion's strategic decision to shift its fiscal year-end from December 31 to April 30, as approved by its Board of Directors. This change in fiscal calendar will prompt the company to file a transition report for the period starting January 1, 2024, and ending April 30, 2024.
In addition to this, Immersion has been exploring merger and acquisition opportunities, backed by a solid cash reserve of $126.5 million. BWS Financial has also maintained its Buy rating for Immersion, following strong fourth quarter results driven by increased automotive and video game revenue.
Finally, on the operational front, Immersion has appointed BDO USA, LLP as its new independent registered public accounting firm and expanded its business interests into the education sector with a substantial asset acquisition from Barnes & Noble Education, Inc. These are the recent developments for Immersion Corporation.
InvestingPro Insights
Immersion Corporation's recent announcement of a special cash dividend aligns with its strong financial performance, as reflected in InvestingPro data. The company's revenue growth is particularly noteworthy, with a remarkable 1323.8% increase in quarterly revenue as of Q2 2024. This substantial growth may have contributed to the Board's decision to reward shareholders with the special dividend.
InvestingPro Tips suggest that Immersion is trading at a low earnings multiple, with a P/E ratio of 4.31. This could indicate that the stock is undervalued relative to its earnings, potentially making it an attractive option for value investors. Additionally, the company is profitable over the last twelve months, which supports its ability to pay dividends.
The dividend yield of 2.15% and a 50% dividend growth rate over the last twelve months further underscore Immersion's commitment to returning value to shareholders. This aligns with the company's announcement of the special dividend and may signal a continued focus on shareholder returns.
For investors seeking more comprehensive analysis, InvestingPro offers 6 additional tips that could provide deeper insights into Immersion Corporation's financial health and market position.
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