Immersion's stock soars on licensing agreement
SAN JOSE, Calif. (AP) — Immersion Corp.'s stock jumped more than 30 percent Thursday after it struck a multi-year licensing agreement with Samsung Electronics Co. Ltd and raised its 2013 revenue forecast by over 50 percent.
The company, which makes touch-based technology used in phones and other devices, said in February that its existing contract with Samsung expired at the end of 2012 and that it believed it was in a position get higher compensation for the arrangement.
Immersion said Thursday that it had struck an agreement. The deal "marks an important milestone in our strategy to monetize our technology more fully within the mobile market," Immersion CEO Victor Viegas said in a statement.
As a result, it now expects revenue in the range of $44 million to $48 million. That's up from its prior forecast of revenue in the range of $28 million to $32 million.
Analysts polled by FactSet had forecast revenue of $30.2 million for the year.
Shares of San Jose, Calif.-based Immersion rose $1.97 to close at $8.24.