Immersion Corporation Q4 2008 Earnings Call Transcript

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2009-03-02 19:29:15.0

Tags: Bill, Call Transcript, Health Care, Training, Earnings, Vertical Industries, Workforce Management, Benefits, Training And Certification, Healthcare, Enterprise Software, Software, Human Resources, Seeking Alpha, Immersion Corp.

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions) Your first question comes from Mark Argento - Craig-Hallum Capital.

Mark Argento - Craig-Hallum Capital

First off on the H.R. 855, that bill, could you just give us a little more color on would that actually mandate that medical institutions actually use training machines? Could you just elaborate on that a little bit?

Clent Richardson

You bet. It's still early days. This is still in consideration. The bill has not been finalized or ratified, but what it implies is that much like simulation is required for pilot training, we would expect that the same would hold true for various forms of medical procedures and surgeries. And so our expectation is this would create a significant opportunity for us.

Mark Argento - Craig-Hallum Capital

And is it part of a larger bill or is it a stand-alone bill?

Clent Richardson

I'm not a specialist in the bill. This is specific to simulation and we believe that this hits our sweet spot for the solutions that we provide as well as I think it provides other simulation requirements as well.

Mark Argento - Craig-Hallum Capital

In terms of, you know, haptics has been around for quite awhile. We've seen some traction on the mobile side given the [performance] factors of the handsets, medical it seems like international's picking up a little bit, autos, you know, some modest wins. Looking back kind of broader picture here, what are really the key one or two things that you see the company having to reach kind of the tipping point in terms of being able to really get the right return on the investment that you guys have put on the business? Is it medical? It sounds like that scenario. Do you need an H.R. 855 to make a profitable business out of it? Could you just talk a little bit more thematically about how you guys look at this business and what really needs to happen for this company to become profitable on a sustained basis?

Clent Richardson

Mark, thanks very much. First of all, it starts with people, and so we have now I believe got the team in place to execute and we have provided focus, divesting 3D, bringing our Medical line into our headquarters to streamline and provide synergies, creating a platform for us to manage two businesses - Touch and Medical.

Medical for us, with or without H.R. 855, is a significant opportunity and one we believe fits into a broader curriculum that we will call health care education. And without going into great detail at this point, what I will suggest is that we have not had any new products to fuel growth. We now are beginning that pipeline and delivery. That will fuel growth. We've proven clearly that international is a substantial upside opportunity for us. We've not had, I would say, the correct formation for go to market and we now have that.

 

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