Immersion Corp (NASDAQ:IMMR) share price soared sharply as much as 50% in Monday’s trade, thanks to the announcement of the settlement with Apple (NASDAQ:AAPL). Immersion has only announced settlement and license agreement with Apple, while it kept the other parts of the agreement in secret.
Immersion is the leading innovator of touch feedback technology, also known as haptics. Immersion stock is currently trading around $11 a share, nearly the highest level in the last twelve months. Previously, IMMR stock has hit the 52-week high of $11.82 in the beginning of fiscal 2017.
Its share volume increased to 12.4 million after the massive growth in share price, compared to the daily average of 440,654 shares.
Before the latest rally, IMMR shares remained under pressure last year, due to poor financial numbers. The company generated revenue of $11.9 million in the latest quarter, representing a decline of 59% compared to the same period last year.
Moreover, the company generated a loss of $0.18 per share, compared to earnings of $0.24 per share in the prior-year quarter.
Following lower numbers in the third quarter of fiscal 2017, the company has lowered its guidance for the full-year.
The company now expects revenue in the range of $33 to $35 million for the full year, significantly lower from $57 million in past year. Furthermore, the company is likely to post a loss of $24 million for fiscal 2017.
However, Immersion CEO believes they are moving in the right direction to generate a sustainable growth in the long-term.
The Chief Executive Officer Vic Viegas of Immersion said, “We continue to make positive progress in furthering the value and adoption of haptics across a growing number of markets, as we added, renewed or expanded numerous licensing engagements during our third quarter of 2017.”
Overall, Immersion shares are moving on the latest news of a settlement with Apple. Investors are also waiting for the results of fiscal 2017 to see where the company actually stands in terms of financial numbers.
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