IMMERSION CORP Earnings Per Share Disclosure
17. EARNINGS PER SHARE
We use the two-class method of computing EPS, which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared. Under the two-class method, basic earnings per share is computed by dividing the income (loss) attributable to Immersion stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. Potential common stock, computed using the treasury stock method, includes stock options and stock awards.
The following are reconciliations of the denominators used in computing basic and diluted net income per share (in thousands, except per share amounts):
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Fiscal Year Ended April 30, |
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Four Months Ended April 30, 2024 |
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Calendar Year Ended December 31, |
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Basic |
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Numerator: |
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Net income attributable to Immersion Stockholders |
$ |
64,284 |
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|
$ |
17,777 |
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|
$ |
33,976 |
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Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's basic EPS calculation (a) |
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(1,626 |
) |
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- |
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- |
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Net income attributable to Immersion Stockholders, basic |
$ |
62,658 |
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|
$ |
17,777 |
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$ |
33,976.00 |
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Denominator: |
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Weighted-average shares outstanding, basic |
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32,219 |
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31,729 |
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|
32,214 |
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Net income attributable to Immersion stockholders, basic |
$ |
1.94 |
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$ |
0.56 |
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$ |
1.05 |
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Diluted |
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Numerator: |
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Net income attributable to Immersion Stockholders |
$ |
64,284 |
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|
$ |
17,777 |
|
|
$ |
33,976 |
|
Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's diluted EPS calculation |
|
(1,659 |
) |
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- |
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- |
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Net income attributable to Immersion stockholders, diluted |
$ |
62,625 |
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$ |
17,777 |
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$ |
33,976 |
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Denominator: |
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Weighted-average shares outstanding, basic |
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32,219 |
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|
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31,729 |
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|
32,214 |
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Shares related to outstanding options, unvested RSUs, RSAs, and PSUs |
|
784 |
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|
379 |
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|
322 |
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Weighted average shares outstanding, diluted |
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33,003 |
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32,108 |
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|
32,536 |
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Net income per share attributable to Immersion stockholders, diluted |
$ |
1.90 |
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|
$ |
0.55 |
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|
$ |
1.04 |
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We include PSUs in the calculation of diluted earnings per share if the applicable performance conditions have been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met.
For the fiscal year ended April 30, 2025 and calendar year ended December 31, 2023, the Company had no outstanding stock options or awards that could potentially dilute basic earnings per share in the future.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2023 | Mar 11, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 6, 2020 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.