IMMR » Topics » Products and Markets

These excerpts taken from the IMMR 10-K filed Mar 9, 2009.
Products and Markets
 
We initially licensed our intellectual property for touch-enabling technologies for consumer gaming peripherals in 1996 and extended beyond gaming to other applications of our haptics-related products and services.
 
Gaming Devices — We have licensed our TouchSense intellectual property to Microsoft for use in its gaming products, to Apple Computer for use in its operating system, and to Sony Computer Entertainment for use in its legacy and current PlayStation console gaming products. We have also licensed our TouchSense intellectual property to over a dozen gaming peripheral manufacturers and distributors, including Logitech and Mad Catz, to bring haptic technology to PC platforms including both Microsoft Windows and Apple operating systems, as well as to video game consoles.
 
In the video game console peripheral market, we have licensed our intellectual property for use in hundreds of spinning mass tactile feedback devices and force feedback devices such as steering wheels and joysticks to various manufacturers including dreamGear, Gemini, Griffin, Hori, i-CON, Intec, Katana, Logitech, Mad Catz, Microsoft, NYKO, Performance Designed Products (“PDP”) (formerly Electro Source LLC), Radica, and Sony. These products are designed to work with one or more video game consoles including the Xbox and Xbox 360 from Microsoft; the PlayStation, PlayStation 2, and PlayStation 3 from Sony; and the N64, GameCube, and Wii from Nintendo. Currently, products sold to consumers using TouchSense technology include PC joysticks, steering wheels, and gamepads from various licensees.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 23%, 21%, and 18% of our total revenues were generated from PC and console gaming revenues.
 
In the arcade entertainment market, our products include steering wheel and joystick control electronics that provide industrial strength and quality force feedback that enable very realistic simulations.
 
In the casino and bar-top amusement market, we signed an agreement with 3M Touch Systems in 2005 that allows manufacture and distribution of its MicroTouch touch screens with our TouchSense technology. 3M Touch Systems and seven system integrators demonstrated this technology in pre-production touchscreen monitors at the 2008 Global Gaming Expo.


6


Table of Contents

Mobile Communications and Portable Devices — We have developed TouchSense solutions for the mobile phone market and a variety of portable devices.
 
TouchSense components include technologies for haptic touchscreens and programmable haptic rotary controls. In early 2009, Samsung announced its new P3 personal media player, currently scheduled to ship in the first half of 2009, with Immersion haptic feedback technology for touchscreen interactions. In 2008 Cue Acoustics announced and began shipping a premium AM/FM radio and iPod docking station that includes a TouchSense rotary control module as its primary control mechanism. In 2007, CTT-Net of Korea launched the world’s first personal navigation devices (“PNDs”) to use Immersion’s TouchSense technology to provide tactile feedback for touchscreen interactions in a global positioning system (“GPS”). We intend to expand applications for TouchSense technologies into a broader range of portable devices, including remote controls for home entertainment systems, medical diagnostic and therapeutic equipment, test and measurement equipment, portable terminals, game devices, and media players.
 
The TouchSense Solution for Mobile Phones for handset OEMs, operators, and application developers includes a TouchSense Player, a lightweight and powerful vibration playback system that is embedded in the phone, and a TouchSense software toolkit, including a PC-based composition tool for creating haptic effects for inclusion in content and applications. Haptic effects can be used in alerts, e-mail, games, messages, ringtones, touchscreen interactions, and other user interface features to add information or identification, signal status or message arrival, and heighten interest or fun. With a TouchSense-enabled phone, users can send and receive a wide range of vibro-tactile haptic effects independently from or in synchronicity with audio, video, and application program content.
 
Our licensees currently include the top three makers of mobile phones by volume in the world: Nokia, Samsung, and LG Electronics plus others such as Pantech Co., Ltd. and KTF Technologies Inc. In 2008, approximately 33 million handsets with TouchSense technology were shipped by our licensees, a nearly six-fold increase over 2007. Since its launch in the first handset in 2005, our TouchSense technology has shipped in over 42 million handsets.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 13%, 7%, and 1% of our total revenues were generated from mobile communication revenues.
 
Automotive — We have developed TouchSense technology for rotary controls, touchscreens, and touch surfaces appropriate for use in automobiles. TouchSense rotary technology can consolidate the control of multiple systems into a single module that provides the appropriate feel for each function. This allows the driver convenient access to many systems and supplies context-sensitive cues for operation. TouchSense touchscreen and touch surface technology provides tactile feedback for an otherwise unresponsive surface such as an all digital switch or touchscreen. Programmable haptic touchscreen, touch surface, and rotary controls of many types can be used to provide a space-saving, aesthetic look and a confirming response for the driver that can help reduce glance time.
 
We have also conducted various funded development efforts and provided tools and evaluation licenses to several major automobile manufacturers and suppliers interested in touch-enabled automobile controls.
 
We have licensed our TouchSense rotary technology for use in vehicle controls since 2002. Siemens VDO Automotive (now Continental) has licensed our technology for use in the high-end Volkswagen Phaeton sedan and Bentley cars. ALPS Electric, also a licensee, has produced a haptic rotary control that has been included in the Mercedes-Benz S — Class sedan starting in the fall of 2005. ALPS also produced a two-dimensional haptic control module called the Remote Touch controller in the Lexus RX 350 and 450h. These 2010 Lexus models were announced in November 2008 and launched in the U.S. in February 2009. Other licensees of TouchSense technology in the automotive industry include: Methode Electronics, Inc., a global designer and manufacturer of electronic component and subsystem devices; Visteon Corporation, a leading global automotive supplier that designs, engineers, and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers; Volkswagen, Europe’s largest automaker; and SMK Corporation of Tokyo, a global manufacturer of electromechanical components. Since its launch in the first vehicle in 2001 our TouchSense technology has shipped in over 2.4 million vehicles.


7


Table of Contents

For the years ended December 31, 2008, 2007, and 2006, respectively 7%, 10%, and 9% of our total revenues were automotive revenues.
 
3D and Mechanical CAD Design — During 2008 we sold three-dimensional and mechanical computer-aided design products that allow users to create three-dimensional computer models directly from physical objects and also to precisely measure manufactured parts. We also manufactured and sold the CyberGlove system, a fully instrumented glove that measures the movement of a user’s hand and, used in conjunction with our software, maps the movement to a graphical hand on the computer screen. In addition, we manufactured and sold specialized products such as computer peripherals that incorporate advanced computer peripheral technologies. On November 17, 2008, we announced our intent to divest these lines of 3D digitizing products in 2009. On February 24, 2009, we sold the line of peripheral products for an immaterial amount.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 13%, 14%, and 17% of our total revenues were generated from 3D and mechanical CAD design revenues.
 
Products and Markets
 
We initially licensed our intellectual property for touch-enabling technologies for consumer gaming peripherals in 1996 and extended beyond gaming to other applications of our haptics-related products and services.
 
Gaming Devices — We have licensed our TouchSense intellectual property to Microsoft for use in its gaming products, to Apple Computer for use in its operating system, and to Sony Computer Entertainment for use in its legacy and current PlayStation console gaming products. We have also licensed our TouchSense intellectual property to over a dozen gaming peripheral manufacturers and distributors, including Logitech and Mad Catz, to bring haptic technology to PC platforms including both Microsoft Windows and Apple operating systems, as well as to video game consoles.
 
In the video game console peripheral market, we have licensed our intellectual property for use in hundreds of spinning mass tactile feedback devices and force feedback devices such as steering wheels and joysticks to various manufacturers including dreamGear, Gemini, Griffin, Hori, i-CON, Intec, Katana, Logitech, Mad Catz, Microsoft, NYKO, Performance Designed Products (“PDP”) (formerly Electro Source LLC), Radica, and Sony. These products are designed to work with one or more video game consoles including the Xbox and Xbox 360 from Microsoft; the PlayStation, PlayStation 2, and PlayStation 3 from Sony; and the N64, GameCube, and Wii from Nintendo. Currently, products sold to consumers using TouchSense technology include PC joysticks, steering wheels, and gamepads from various licensees.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 23%, 21%, and 18% of our total revenues were generated from PC and console gaming revenues.
 
In the arcade entertainment market, our products include steering wheel and joystick control electronics that provide industrial strength and quality force feedback that enable very realistic simulations.
 
In the casino and bar-top amusement market, we signed an agreement with 3M Touch Systems in 2005 that allows manufacture and distribution of its MicroTouch touch screens with our TouchSense technology. 3M Touch Systems and seven system integrators demonstrated this technology in pre-production touchscreen monitors at the 2008 Global Gaming Expo.


6


Table of Contents

Mobile Communications and Portable Devices — We have developed TouchSense solutions for the mobile phone market and a variety of portable devices.
 
TouchSense components include technologies for haptic touchscreens and programmable haptic rotary controls. In early 2009, Samsung announced its new P3 personal media player, currently scheduled to ship in the first half of 2009, with Immersion haptic feedback technology for touchscreen interactions. In 2008 Cue Acoustics announced and began shipping a premium AM/FM radio and iPod docking station that includes a TouchSense rotary control module as its primary control mechanism. In 2007, CTT-Net of Korea launched the world’s first personal navigation devices (“PNDs”) to use Immersion’s TouchSense technology to provide tactile feedback for touchscreen interactions in a global positioning system (“GPS”). We intend to expand applications for TouchSense technologies into a broader range of portable devices, including remote controls for home entertainment systems, medical diagnostic and therapeutic equipment, test and measurement equipment, portable terminals, game devices, and media players.
 
The TouchSense Solution for Mobile Phones for handset OEMs, operators, and application developers includes a TouchSense Player, a lightweight and powerful vibration playback system that is embedded in the phone, and a TouchSense software toolkit, including a PC-based composition tool for creating haptic effects for inclusion in content and applications. Haptic effects can be used in alerts, e-mail, games, messages, ringtones, touchscreen interactions, and other user interface features to add information or identification, signal status or message arrival, and heighten interest or fun. With a TouchSense-enabled phone, users can send and receive a wide range of vibro-tactile haptic effects independently from or in synchronicity with audio, video, and application program content.
 
Our licensees currently include the top three makers of mobile phones by volume in the world: Nokia, Samsung, and LG Electronics plus others such as Pantech Co., Ltd. and KTF Technologies Inc. In 2008, approximately 33 million handsets with TouchSense technology were shipped by our licensees, a nearly six-fold increase over 2007. Since its launch in the first handset in 2005, our TouchSense technology has shipped in over 42 million handsets.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 13%, 7%, and 1% of our total revenues were generated from mobile communication revenues.
 
Automotive — We have developed TouchSense technology for rotary controls, touchscreens, and touch surfaces appropriate for use in automobiles. TouchSense rotary technology can consolidate the control of multiple systems into a single module that provides the appropriate feel for each function. This allows the driver convenient access to many systems and supplies context-sensitive cues for operation. TouchSense touchscreen and touch surface technology provides tactile feedback for an otherwise unresponsive surface such as an all digital switch or touchscreen. Programmable haptic touchscreen, touch surface, and rotary controls of many types can be used to provide a space-saving, aesthetic look and a confirming response for the driver that can help reduce glance time.
 
We have also conducted various funded development efforts and provided tools and evaluation licenses to several major automobile manufacturers and suppliers interested in touch-enabled automobile controls.
 
We have licensed our TouchSense rotary technology for use in vehicle controls since 2002. Siemens VDO Automotive (now Continental) has licensed our technology for use in the high-end Volkswagen Phaeton sedan and Bentley cars. ALPS Electric, also a licensee, has produced a haptic rotary control that has been included in the Mercedes-Benz S — Class sedan starting in the fall of 2005. ALPS also produced a two-dimensional haptic control module called the Remote Touch controller in the Lexus RX 350 and 450h. These 2010 Lexus models were announced in November 2008 and launched in the U.S. in February 2009. Other licensees of TouchSense technology in the automotive industry include: Methode Electronics, Inc., a global designer and manufacturer of electronic component and subsystem devices; Visteon Corporation, a leading global automotive supplier that designs, engineers, and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers; Volkswagen, Europe’s largest automaker; and SMK Corporation of Tokyo, a global manufacturer of electromechanical components. Since its launch in the first vehicle in 2001 our TouchSense technology has shipped in over 2.4 million vehicles.


7


Table of Contents

For the years ended December 31, 2008, 2007, and 2006, respectively 7%, 10%, and 9% of our total revenues were automotive revenues.
 
3D and Mechanical CAD Design — During 2008 we sold three-dimensional and mechanical computer-aided design products that allow users to create three-dimensional computer models directly from physical objects and also to precisely measure manufactured parts. We also manufactured and sold the CyberGlove system, a fully instrumented glove that measures the movement of a user’s hand and, used in conjunction with our software, maps the movement to a graphical hand on the computer screen. In addition, we manufactured and sold specialized products such as computer peripherals that incorporate advanced computer peripheral technologies. On November 17, 2008, we announced our intent to divest these lines of 3D digitizing products in 2009. On February 24, 2009, we sold the line of peripheral products for an immaterial amount.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 13%, 14%, and 17% of our total revenues were generated from 3D and mechanical CAD design revenues.
 
Products and Markets
 
We initially licensed our intellectual property for touch-enabling technologies for consumer gaming peripherals in 1996 and extended beyond gaming to other applications of our haptics-related products and services.
 
Gaming Devices — We have licensed our TouchSense intellectual property to Microsoft for use in its gaming products, to Apple Computer for use in its operating system, and to Sony Computer Entertainment for use in its legacy and current PlayStation console gaming products. We have also licensed our TouchSense intellectual property to over a dozen gaming peripheral manufacturers and distributors, including Logitech and Mad Catz, to bring haptic technology to PC platforms including both Microsoft Windows and Apple operating systems, as well as to video game consoles.
 
In the video game console peripheral market, we have licensed our intellectual property for use in hundreds of spinning mass tactile feedback devices and force feedback devices such as steering wheels and joysticks to various manufacturers including dreamGear, Gemini, Griffin, Hori, i-CON, Intec, Katana, Logitech, Mad Catz, Microsoft, NYKO, Performance Designed Products (“PDP”) (formerly Electro Source LLC), Radica, and Sony. These products are designed to work with one or more video game consoles including the Xbox and Xbox 360 from Microsoft; the PlayStation, PlayStation 2, and PlayStation 3 from Sony; and the N64, GameCube, and Wii from Nintendo. Currently, products sold to consumers using TouchSense technology include PC joysticks, steering wheels, and gamepads from various licensees.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 23%, 21%, and 18% of our total revenues were generated from PC and console gaming revenues.
 
In the arcade entertainment market, our products include steering wheel and joystick control electronics that provide industrial strength and quality force feedback that enable very realistic simulations.
 
In the casino and bar-top amusement market, we signed an agreement with 3M Touch Systems in 2005 that allows manufacture and distribution of its MicroTouch touch screens with our TouchSense technology. 3M Touch Systems and seven system integrators demonstrated this technology in pre-production touchscreen monitors at the 2008 Global Gaming Expo.


6


Table of Contents

Mobile Communications and Portable Devices — We have developed TouchSense solutions for the mobile phone market and a variety of portable devices.
 
TouchSense components include technologies for haptic touchscreens and programmable haptic rotary controls. In early 2009, Samsung announced its new P3 personal media player, currently scheduled to ship in the first half of 2009, with Immersion haptic feedback technology for touchscreen interactions. In 2008 Cue Acoustics announced and began shipping a premium AM/FM radio and iPod docking station that includes a TouchSense rotary control module as its primary control mechanism. In 2007, CTT-Net of Korea launched the world’s first personal navigation devices (“PNDs”) to use Immersion’s TouchSense technology to provide tactile feedback for touchscreen interactions in a global positioning system (“GPS”). We intend to expand applications for TouchSense technologies into a broader range of portable devices, including remote controls for home entertainment systems, medical diagnostic and therapeutic equipment, test and measurement equipment, portable terminals, game devices, and media players.
 
The TouchSense Solution for Mobile Phones for handset OEMs, operators, and application developers includes a TouchSense Player, a lightweight and powerful vibration playback system that is embedded in the phone, and a TouchSense software toolkit, including a PC-based composition tool for creating haptic effects for inclusion in content and applications. Haptic effects can be used in alerts, e-mail, games, messages, ringtones, touchscreen interactions, and other user interface features to add information or identification, signal status or message arrival, and heighten interest or fun. With a TouchSense-enabled phone, users can send and receive a wide range of vibro-tactile haptic effects independently from or in synchronicity with audio, video, and application program content.
 
Our licensees currently include the top three makers of mobile phones by volume in the world: Nokia, Samsung, and LG Electronics plus others such as Pantech Co., Ltd. and KTF Technologies Inc. In 2008, approximately 33 million handsets with TouchSense technology were shipped by our licensees, a nearly six-fold increase over 2007. Since its launch in the first handset in 2005, our TouchSense technology has shipped in over 42 million handsets.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 13%, 7%, and 1% of our total revenues were generated from mobile communication revenues.
 
Automotive — We have developed TouchSense technology for rotary controls, touchscreens, and touch surfaces appropriate for use in automobiles. TouchSense rotary technology can consolidate the control of multiple systems into a single module that provides the appropriate feel for each function. This allows the driver convenient access to many systems and supplies context-sensitive cues for operation. TouchSense touchscreen and touch surface technology provides tactile feedback for an otherwise unresponsive surface such as an all digital switch or touchscreen. Programmable haptic touchscreen, touch surface, and rotary controls of many types can be used to provide a space-saving, aesthetic look and a confirming response for the driver that can help reduce glance time.
 
We have also conducted various funded development efforts and provided tools and evaluation licenses to several major automobile manufacturers and suppliers interested in touch-enabled automobile controls.
 
We have licensed our TouchSense rotary technology for use in vehicle controls since 2002. Siemens VDO Automotive (now Continental) has licensed our technology for use in the high-end Volkswagen Phaeton sedan and Bentley cars. ALPS Electric, also a licensee, has produced a haptic rotary control that has been included in the Mercedes-Benz S — Class sedan starting in the fall of 2005. ALPS also produced a two-dimensional haptic control module called the Remote Touch controller in the Lexus RX 350 and 450h. These 2010 Lexus models were announced in November 2008 and launched in the U.S. in February 2009. Other licensees of TouchSense technology in the automotive industry include: Methode Electronics, Inc., a global designer and manufacturer of electronic component and subsystem devices; Visteon Corporation, a leading global automotive supplier that designs, engineers, and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers; Volkswagen, Europe’s largest automaker; and SMK Corporation of Tokyo, a global manufacturer of electromechanical components. Since its launch in the first vehicle in 2001 our TouchSense technology has shipped in over 2.4 million vehicles.


7


Table of Contents

For the years ended December 31, 2008, 2007, and 2006, respectively 7%, 10%, and 9% of our total revenues were automotive revenues.
 
3D and Mechanical CAD Design — During 2008 we sold three-dimensional and mechanical computer-aided design products that allow users to create three-dimensional computer models directly from physical objects and also to precisely measure manufactured parts. We also manufactured and sold the CyberGlove system, a fully instrumented glove that measures the movement of a user’s hand and, used in conjunction with our software, maps the movement to a graphical hand on the computer screen. In addition, we manufactured and sold specialized products such as computer peripherals that incorporate advanced computer peripheral technologies. On November 17, 2008, we announced our intent to divest these lines of 3D digitizing products in 2009. On February 24, 2009, we sold the line of peripheral products for an immaterial amount.
 
For the years ended December 31, 2008, 2007, and 2006, respectively 13%, 14%, and 17% of our total revenues were generated from 3D and mechanical CAD design revenues.
 
Products
and Markets



 



We initially licensed our intellectual property for
touch-enabling technologies for consumer gaming peripherals in
1996 and extended beyond gaming to other applications of our
haptics-related products and services.


 



Gaming Devices — We have licensed our
TouchSense intellectual property to Microsoft for use in its
gaming products, to Apple Computer for use in its operating
system, and to Sony Computer Entertainment for use in its legacy
and current PlayStation console gaming products. We have also
licensed our TouchSense intellectual property to over a dozen
gaming peripheral manufacturers and distributors, including
Logitech and Mad Catz, to bring haptic technology to PC
platforms including both Microsoft Windows and Apple operating
systems, as well as to video game consoles.


 



In the video game console peripheral market, we have licensed
our intellectual property for use in hundreds of spinning mass
tactile feedback devices and force feedback devices such as
steering wheels and joysticks to various manufacturers including
dreamGear, Gemini, Griffin, Hori, i-CON, Intec, Katana,
Logitech, Mad Catz, Microsoft, NYKO, Performance Designed
Products (“PDP”) (formerly Electro Source LLC),
Radica, and Sony. These products are designed to work with one
or more video game consoles including the Xbox and Xbox 360 from
Microsoft; the PlayStation, PlayStation 2, and PlayStation 3
from Sony; and the N64, GameCube, and Wii from Nintendo.
Currently, products sold to consumers using TouchSense
technology include PC joysticks, steering wheels, and gamepads
from various licensees.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 23%, 21%, and 18% of our total revenues were
generated from PC and console gaming revenues.


 



In the arcade entertainment market, our products include
steering wheel and joystick control electronics that provide
industrial strength and quality force feedback that enable very
realistic simulations.


 



In the casino and bar-top amusement market, we signed an
agreement with 3M Touch Systems in 2005 that allows manufacture
and distribution of its MicroTouch touch screens with our
TouchSense technology. 3M Touch Systems and seven system
integrators demonstrated this technology in pre-production
touchscreen monitors at the 2008 Global Gaming Expo.





6





Table of Contents






Mobile Communications and Portable Devices — We
have developed TouchSense solutions for the mobile phone market
and a variety of portable devices.


 



TouchSense components include technologies for haptic
touchscreens and programmable haptic rotary controls. In early
2009, Samsung announced its new P3 personal media player,
currently scheduled to ship in the first half of 2009, with
Immersion haptic feedback technology for touchscreen
interactions. In 2008 Cue Acoustics announced and began shipping
a premium AM/FM radio and iPod docking station that includes a
TouchSense rotary control module as its primary control
mechanism. In 2007,
CTT-Net of
Korea launched the world’s first personal navigation
devices (“PNDs”) to use Immersion’s TouchSense
technology to provide tactile feedback for touchscreen
interactions in a global positioning system (“GPS”).
We intend to expand applications for TouchSense technologies
into a broader range of portable devices, including remote
controls for home entertainment systems, medical diagnostic and
therapeutic equipment, test and measurement equipment, portable
terminals, game devices, and media players.


 



The TouchSense Solution for Mobile Phones for handset OEMs,
operators, and application developers includes a TouchSense
Player, a lightweight and powerful vibration playback system
that is embedded in the phone, and a TouchSense software
toolkit, including a PC-based composition tool for creating
haptic effects for inclusion in content and applications. Haptic
effects can be used in alerts,
e-mail,
games, messages, ringtones, touchscreen interactions, and other
user interface features to add information or identification,
signal status or message arrival, and heighten interest or fun.
With a TouchSense-enabled phone, users can send and receive a
wide range of vibro-tactile haptic effects independently from or
in synchronicity with audio, video, and application program
content.


 



Our licensees currently include the top three makers of mobile
phones by volume in the world: Nokia, Samsung, and LG
Electronics plus others such as Pantech Co., Ltd. and KTF
Technologies Inc. In 2008, approximately 33 million
handsets with TouchSense technology were shipped by our
licensees, a nearly six-fold increase over 2007. Since its
launch in the first handset in 2005, our TouchSense technology
has shipped in over 42 million handsets.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 13%, 7%, and 1% of our total revenues were
generated from mobile communication revenues.


 



Automotive — We have developed TouchSense
technology for rotary controls, touchscreens, and touch surfaces
appropriate for use in automobiles. TouchSense rotary technology
can consolidate the control of multiple systems into a single
module that provides the appropriate feel for each function.
This allows the driver convenient access to many systems and
supplies context-sensitive cues for operation. TouchSense
touchscreen and touch surface technology provides tactile
feedback for an otherwise unresponsive surface such as an all
digital switch or touchscreen. Programmable haptic touchscreen,
touch surface, and rotary controls of many types can be used to
provide a space-saving, aesthetic look and a confirming response
for the driver that can help reduce glance time.


 



We have also conducted various funded development efforts and
provided tools and evaluation licenses to several major
automobile manufacturers and suppliers interested in
touch-enabled automobile controls.


 



We have licensed our TouchSense rotary technology for use in
vehicle controls since 2002. Siemens VDO Automotive (now
Continental) has licensed our technology for use in the high-end
Volkswagen Phaeton sedan and Bentley cars. ALPS Electric, also a
licensee, has produced a haptic rotary control that has been
included in the Mercedes-Benz S — Class sedan starting
in the fall of 2005. ALPS also produced a two-dimensional haptic
control module called the Remote Touch controller in the Lexus
RX 350 and 450h. These 2010 Lexus models were announced in
November 2008 and launched in the U.S. in February 2009.
Other licensees of TouchSense technology in the automotive
industry include: Methode Electronics, Inc., a global designer
and manufacturer of electronic component and subsystem devices;
Visteon Corporation, a leading global automotive supplier that
designs, engineers, and manufactures innovative climate,
interior, electronic and lighting products for vehicle
manufacturers; Volkswagen, Europe’s largest automaker; and
SMK Corporation of Tokyo, a global manufacturer of
electromechanical components. Since its launch in the first
vehicle in 2001 our TouchSense technology has shipped in over
2.4 million vehicles.





7





Table of Contents






For the years ended December 31, 2008, 2007, and 2006,
respectively 7%, 10%, and 9% of our total revenues were
automotive revenues.


 



3D and Mechanical CAD Design — During 2008 we
sold three-dimensional and mechanical computer-aided design
products that allow users to create three-dimensional computer
models directly from physical objects and also to precisely
measure manufactured parts. We also manufactured and sold the
CyberGlove system, a fully instrumented glove that measures the
movement of a user’s hand and, used in conjunction with our
software, maps the movement to a graphical hand on the computer
screen. In addition, we manufactured and sold specialized
products such as computer peripherals that incorporate advanced
computer peripheral technologies. On November 17, 2008, we
announced our intent to divest these lines of 3D digitizing
products in 2009. On February 24, 2009, we sold the line of
peripheral products for an immaterial amount.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 13%, 14%, and 17% of our total revenues were
generated from 3D and mechanical CAD design revenues.


 




Products
and Markets



 



We initially licensed our intellectual property for
touch-enabling technologies for consumer gaming peripherals in
1996 and extended beyond gaming to other applications of our
haptics-related products and services.


 



Gaming Devices — We have licensed our
TouchSense intellectual property to Microsoft for use in its
gaming products, to Apple Computer for use in its operating
system, and to Sony Computer Entertainment for use in its legacy
and current PlayStation console gaming products. We have also
licensed our TouchSense intellectual property to over a dozen
gaming peripheral manufacturers and distributors, including
Logitech and Mad Catz, to bring haptic technology to PC
platforms including both Microsoft Windows and Apple operating
systems, as well as to video game consoles.


 



In the video game console peripheral market, we have licensed
our intellectual property for use in hundreds of spinning mass
tactile feedback devices and force feedback devices such as
steering wheels and joysticks to various manufacturers including
dreamGear, Gemini, Griffin, Hori, i-CON, Intec, Katana,
Logitech, Mad Catz, Microsoft, NYKO, Performance Designed
Products (“PDP”) (formerly Electro Source LLC),
Radica, and Sony. These products are designed to work with one
or more video game consoles including the Xbox and Xbox 360 from
Microsoft; the PlayStation, PlayStation 2, and PlayStation 3
from Sony; and the N64, GameCube, and Wii from Nintendo.
Currently, products sold to consumers using TouchSense
technology include PC joysticks, steering wheels, and gamepads
from various licensees.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 23%, 21%, and 18% of our total revenues were
generated from PC and console gaming revenues.


 



In the arcade entertainment market, our products include
steering wheel and joystick control electronics that provide
industrial strength and quality force feedback that enable very
realistic simulations.


 



In the casino and bar-top amusement market, we signed an
agreement with 3M Touch Systems in 2005 that allows manufacture
and distribution of its MicroTouch touch screens with our
TouchSense technology. 3M Touch Systems and seven system
integrators demonstrated this technology in pre-production
touchscreen monitors at the 2008 Global Gaming Expo.





6





Table of Contents






Mobile Communications and Portable Devices — We
have developed TouchSense solutions for the mobile phone market
and a variety of portable devices.


 



TouchSense components include technologies for haptic
touchscreens and programmable haptic rotary controls. In early
2009, Samsung announced its new P3 personal media player,
currently scheduled to ship in the first half of 2009, with
Immersion haptic feedback technology for touchscreen
interactions. In 2008 Cue Acoustics announced and began shipping
a premium AM/FM radio and iPod docking station that includes a
TouchSense rotary control module as its primary control
mechanism. In 2007,
CTT-Net of
Korea launched the world’s first personal navigation
devices (“PNDs”) to use Immersion’s TouchSense
technology to provide tactile feedback for touchscreen
interactions in a global positioning system (“GPS”).
We intend to expand applications for TouchSense technologies
into a broader range of portable devices, including remote
controls for home entertainment systems, medical diagnostic and
therapeutic equipment, test and measurement equipment, portable
terminals, game devices, and media players.


 



The TouchSense Solution for Mobile Phones for handset OEMs,
operators, and application developers includes a TouchSense
Player, a lightweight and powerful vibration playback system
that is embedded in the phone, and a TouchSense software
toolkit, including a PC-based composition tool for creating
haptic effects for inclusion in content and applications. Haptic
effects can be used in alerts,
e-mail,
games, messages, ringtones, touchscreen interactions, and other
user interface features to add information or identification,
signal status or message arrival, and heighten interest or fun.
With a TouchSense-enabled phone, users can send and receive a
wide range of vibro-tactile haptic effects independently from or
in synchronicity with audio, video, and application program
content.


 



Our licensees currently include the top three makers of mobile
phones by volume in the world: Nokia, Samsung, and LG
Electronics plus others such as Pantech Co., Ltd. and KTF
Technologies Inc. In 2008, approximately 33 million
handsets with TouchSense technology were shipped by our
licensees, a nearly six-fold increase over 2007. Since its
launch in the first handset in 2005, our TouchSense technology
has shipped in over 42 million handsets.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 13%, 7%, and 1% of our total revenues were
generated from mobile communication revenues.


 



Automotive — We have developed TouchSense
technology for rotary controls, touchscreens, and touch surfaces
appropriate for use in automobiles. TouchSense rotary technology
can consolidate the control of multiple systems into a single
module that provides the appropriate feel for each function.
This allows the driver convenient access to many systems and
supplies context-sensitive cues for operation. TouchSense
touchscreen and touch surface technology provides tactile
feedback for an otherwise unresponsive surface such as an all
digital switch or touchscreen. Programmable haptic touchscreen,
touch surface, and rotary controls of many types can be used to
provide a space-saving, aesthetic look and a confirming response
for the driver that can help reduce glance time.


 



We have also conducted various funded development efforts and
provided tools and evaluation licenses to several major
automobile manufacturers and suppliers interested in
touch-enabled automobile controls.


 



We have licensed our TouchSense rotary technology for use in
vehicle controls since 2002. Siemens VDO Automotive (now
Continental) has licensed our technology for use in the high-end
Volkswagen Phaeton sedan and Bentley cars. ALPS Electric, also a
licensee, has produced a haptic rotary control that has been
included in the Mercedes-Benz S — Class sedan starting
in the fall of 2005. ALPS also produced a two-dimensional haptic
control module called the Remote Touch controller in the Lexus
RX 350 and 450h. These 2010 Lexus models were announced in
November 2008 and launched in the U.S. in February 2009.
Other licensees of TouchSense technology in the automotive
industry include: Methode Electronics, Inc., a global designer
and manufacturer of electronic component and subsystem devices;
Visteon Corporation, a leading global automotive supplier that
designs, engineers, and manufactures innovative climate,
interior, electronic and lighting products for vehicle
manufacturers; Volkswagen, Europe’s largest automaker; and
SMK Corporation of Tokyo, a global manufacturer of
electromechanical components. Since its launch in the first
vehicle in 2001 our TouchSense technology has shipped in over
2.4 million vehicles.





7





Table of Contents






For the years ended December 31, 2008, 2007, and 2006,
respectively 7%, 10%, and 9% of our total revenues were
automotive revenues.


 



3D and Mechanical CAD Design — During 2008 we
sold three-dimensional and mechanical computer-aided design
products that allow users to create three-dimensional computer
models directly from physical objects and also to precisely
measure manufactured parts. We also manufactured and sold the
CyberGlove system, a fully instrumented glove that measures the
movement of a user’s hand and, used in conjunction with our
software, maps the movement to a graphical hand on the computer
screen. In addition, we manufactured and sold specialized
products such as computer peripherals that incorporate advanced
computer peripheral technologies. On November 17, 2008, we
announced our intent to divest these lines of 3D digitizing
products in 2009. On February 24, 2009, we sold the line of
peripheral products for an immaterial amount.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 13%, 14%, and 17% of our total revenues were
generated from 3D and mechanical CAD design revenues.


 




Products
and Markets



 



We initially licensed our intellectual property for
touch-enabling technologies for consumer gaming peripherals in
1996 and extended beyond gaming to other applications of our
haptics-related products and services.


 



Gaming Devices — We have licensed our
TouchSense intellectual property to Microsoft for use in its
gaming products, to Apple Computer for use in its operating
system, and to Sony Computer Entertainment for use in its legacy
and current PlayStation console gaming products. We have also
licensed our TouchSense intellectual property to over a dozen
gaming peripheral manufacturers and distributors, including
Logitech and Mad Catz, to bring haptic technology to PC
platforms including both Microsoft Windows and Apple operating
systems, as well as to video game consoles.


 



In the video game console peripheral market, we have licensed
our intellectual property for use in hundreds of spinning mass
tactile feedback devices and force feedback devices such as
steering wheels and joysticks to various manufacturers including
dreamGear, Gemini, Griffin, Hori, i-CON, Intec, Katana,
Logitech, Mad Catz, Microsoft, NYKO, Performance Designed
Products (“PDP”) (formerly Electro Source LLC),
Radica, and Sony. These products are designed to work with one
or more video game consoles including the Xbox and Xbox 360 from
Microsoft; the PlayStation, PlayStation 2, and PlayStation 3
from Sony; and the N64, GameCube, and Wii from Nintendo.
Currently, products sold to consumers using TouchSense
technology include PC joysticks, steering wheels, and gamepads
from various licensees.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 23%, 21%, and 18% of our total revenues were
generated from PC and console gaming revenues.


 



In the arcade entertainment market, our products include
steering wheel and joystick control electronics that provide
industrial strength and quality force feedback that enable very
realistic simulations.


 



In the casino and bar-top amusement market, we signed an
agreement with 3M Touch Systems in 2005 that allows manufacture
and distribution of its MicroTouch touch screens with our
TouchSense technology. 3M Touch Systems and seven system
integrators demonstrated this technology in pre-production
touchscreen monitors at the 2008 Global Gaming Expo.





6





Table of Contents






Mobile Communications and Portable Devices — We
have developed TouchSense solutions for the mobile phone market
and a variety of portable devices.


 



TouchSense components include technologies for haptic
touchscreens and programmable haptic rotary controls. In early
2009, Samsung announced its new P3 personal media player,
currently scheduled to ship in the first half of 2009, with
Immersion haptic feedback technology for touchscreen
interactions. In 2008 Cue Acoustics announced and began shipping
a premium AM/FM radio and iPod docking station that includes a
TouchSense rotary control module as its primary control
mechanism. In 2007,
CTT-Net of
Korea launched the world’s first personal navigation
devices (“PNDs”) to use Immersion’s TouchSense
technology to provide tactile feedback for touchscreen
interactions in a global positioning system (“GPS”).
We intend to expand applications for TouchSense technologies
into a broader range of portable devices, including remote
controls for home entertainment systems, medical diagnostic and
therapeutic equipment, test and measurement equipment, portable
terminals, game devices, and media players.


 



The TouchSense Solution for Mobile Phones for handset OEMs,
operators, and application developers includes a TouchSense
Player, a lightweight and powerful vibration playback system
that is embedded in the phone, and a TouchSense software
toolkit, including a PC-based composition tool for creating
haptic effects for inclusion in content and applications. Haptic
effects can be used in alerts,
e-mail,
games, messages, ringtones, touchscreen interactions, and other
user interface features to add information or identification,
signal status or message arrival, and heighten interest or fun.
With a TouchSense-enabled phone, users can send and receive a
wide range of vibro-tactile haptic effects independently from or
in synchronicity with audio, video, and application program
content.


 



Our licensees currently include the top three makers of mobile
phones by volume in the world: Nokia, Samsung, and LG
Electronics plus others such as Pantech Co., Ltd. and KTF
Technologies Inc. In 2008, approximately 33 million
handsets with TouchSense technology were shipped by our
licensees, a nearly six-fold increase over 2007. Since its
launch in the first handset in 2005, our TouchSense technology
has shipped in over 42 million handsets.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 13%, 7%, and 1% of our total revenues were
generated from mobile communication revenues.


 



Automotive — We have developed TouchSense
technology for rotary controls, touchscreens, and touch surfaces
appropriate for use in automobiles. TouchSense rotary technology
can consolidate the control of multiple systems into a single
module that provides the appropriate feel for each function.
This allows the driver convenient access to many systems and
supplies context-sensitive cues for operation. TouchSense
touchscreen and touch surface technology provides tactile
feedback for an otherwise unresponsive surface such as an all
digital switch or touchscreen. Programmable haptic touchscreen,
touch surface, and rotary controls of many types can be used to
provide a space-saving, aesthetic look and a confirming response
for the driver that can help reduce glance time.


 



We have also conducted various funded development efforts and
provided tools and evaluation licenses to several major
automobile manufacturers and suppliers interested in
touch-enabled automobile controls.


 



We have licensed our TouchSense rotary technology for use in
vehicle controls since 2002. Siemens VDO Automotive (now
Continental) has licensed our technology for use in the high-end
Volkswagen Phaeton sedan and Bentley cars. ALPS Electric, also a
licensee, has produced a haptic rotary control that has been
included in the Mercedes-Benz S — Class sedan starting
in the fall of 2005. ALPS also produced a two-dimensional haptic
control module called the Remote Touch controller in the Lexus
RX 350 and 450h. These 2010 Lexus models were announced in
November 2008 and launched in the U.S. in February 2009.
Other licensees of TouchSense technology in the automotive
industry include: Methode Electronics, Inc., a global designer
and manufacturer of electronic component and subsystem devices;
Visteon Corporation, a leading global automotive supplier that
designs, engineers, and manufactures innovative climate,
interior, electronic and lighting products for vehicle
manufacturers; Volkswagen, Europe’s largest automaker; and
SMK Corporation of Tokyo, a global manufacturer of
electromechanical components. Since its launch in the first
vehicle in 2001 our TouchSense technology has shipped in over
2.4 million vehicles.





7





Table of Contents






For the years ended December 31, 2008, 2007, and 2006,
respectively 7%, 10%, and 9% of our total revenues were
automotive revenues.


 



3D and Mechanical CAD Design — During 2008 we
sold three-dimensional and mechanical computer-aided design
products that allow users to create three-dimensional computer
models directly from physical objects and also to precisely
measure manufactured parts. We also manufactured and sold the
CyberGlove system, a fully instrumented glove that measures the
movement of a user’s hand and, used in conjunction with our
software, maps the movement to a graphical hand on the computer
screen. In addition, we manufactured and sold specialized
products such as computer peripherals that incorporate advanced
computer peripheral technologies. On November 17, 2008, we
announced our intent to divest these lines of 3D digitizing
products in 2009. On February 24, 2009, we sold the line of
peripheral products for an immaterial amount.


 



For the years ended December 31, 2008, 2007, and 2006,
respectively 13%, 14%, and 17% of our total revenues were
generated from 3D and mechanical CAD design revenues.


 




Products and Markets
 
We have developed numerous simulation technologies that can be used for medical training and testing. By enabling a medical simulator to more fully engage users’ sense of touch, our technologies can support realistic simulations that are effective in teaching medical students, doctors, and other health professionals what it feels like to perform a given procedure. The use of our simulators allows these professionals to perfect their practice in an environment that poses no risks to patients, where mistakes have no dire consequences, and where animal or cadaver use is unnecessary.
 
In addition, organizations wanting to train customers or sales staff on medical procedures and on the use of new tools and medical devices engage us to develop special simulators. Examples of projects we have completed include simulation of venous access, minimally invasive vein harvesting, hysteroscopy, and aortic valve and pacemaker lead placement.
 
We have four medical simulation product lines: the Virtual IV system, which simulates needle-based procedures such as intravenous catheterization and phlebotomy; the Endoscopy AccuTouch® System, which simulates endoscopic procedures, including bronchoscopy and lower and upper GI procedures; the CathLabVR System, which simulates endovascular interventions including cardiac pacing, angiography, angioplasty, and carotid and coronary stent placement; and the LapVR System, which simulates minimally invasive procedures involving abdominal and pelvic organs. In addition, we sell an arthroscopy surgical simulator for certain arthroscopic surgical procedures on knees and shoulders based on GMV’s insightArthroVR system.
 
These systems are used for training and educational purposes to enable health professionals to feel simulated forces that they would experience during actual medical procedures, such as encountering an arterial obstruction. The systems are designed to provide a realistic training environment augmented by real-time graphics that include anatomic models developed from actual patient data and high-fidelity sound that includes simulated patient responses.
 
All our products are comprised of a hardware system, an interface device, and software modules that include several cases of increasing difficulty, allowing users to develop their skills by experiencing a broad range of pathologies in differing anatomical conditions.
 
We design each product line to maximize the number of procedures that can be simulated with minimal additional customer hardware investment. These systems then enable potential additional sales of software to the installed base of hardware systems. We believe the relatively low price of our software modules provides an opportunity for repeat sales. We currently have over 25 various software modules available that replicate such medical procedures as intravenous catheterization, laparoscopy, bronchoscopy, colonoscopy, cardiac pacing, and carotid and coronary angioplasty.


9


Table of Contents

Products and Markets
 
We have developed numerous simulation technologies that can be used for medical training and testing. By enabling a medical simulator to more fully engage users’ sense of touch, our technologies can support realistic simulations that are effective in teaching medical students, doctors, and other health professionals what it feels like to perform a given procedure. The use of our simulators allows these professionals to perfect their practice in an environment that poses no risks to patients, where mistakes have no dire consequences, and where animal or cadaver use is unnecessary.
 
In addition, organizations wanting to train customers or sales staff on medical procedures and on the use of new tools and medical devices engage us to develop special simulators. Examples of projects we have completed include simulation of venous access, minimally invasive vein harvesting, hysteroscopy, and aortic valve and pacemaker lead placement.
 
We have four medical simulation product lines: the Virtual IV system, which simulates needle-based procedures such as intravenous catheterization and phlebotomy; the Endoscopy AccuTouch® System, which simulates endoscopic procedures, including bronchoscopy and lower and upper GI procedures; the CathLabVR System, which simulates endovascular interventions including cardiac pacing, angiography, angioplasty, and carotid and coronary stent placement; and the LapVR System, which simulates minimally invasive procedures involving abdominal and pelvic organs. In addition, we sell an arthroscopy surgical simulator for certain arthroscopic surgical procedures on knees and shoulders based on GMV’s insightArthroVR system.
 
These systems are used for training and educational purposes to enable health professionals to feel simulated forces that they would experience during actual medical procedures, such as encountering an arterial obstruction. The systems are designed to provide a realistic training environment augmented by real-time graphics that include anatomic models developed from actual patient data and high-fidelity sound that includes simulated patient responses.
 
All our products are comprised of a hardware system, an interface device, and software modules that include several cases of increasing difficulty, allowing users to develop their skills by experiencing a broad range of pathologies in differing anatomical conditions.
 
We design each product line to maximize the number of procedures that can be simulated with minimal additional customer hardware investment. These systems then enable potential additional sales of software to the installed base of hardware systems. We believe the relatively low price of our software modules provides an opportunity for repeat sales. We currently have over 25 various software modules available that replicate such medical procedures as intravenous catheterization, laparoscopy, bronchoscopy, colonoscopy, cardiac pacing, and carotid and coronary angioplasty.


9


Table of Contents

Products and Markets
 
We have developed numerous simulation technologies that can be used for medical training and testing. By enabling a medical simulator to more fully engage users’ sense of touch, our technologies can support realistic simulations that are effective in teaching medical students, doctors, and other health professionals what it feels like to perform a given procedure. The use of our simulators allows these professionals to perfect their practice in an environment that poses no risks to patients, where mistakes have no dire consequences, and where animal or cadaver use is unnecessary.
 
In addition, organizations wanting to train customers or sales staff on medical procedures and on the use of new tools and medical devices engage us to develop special simulators. Examples of projects we have completed include simulation of venous access, minimally invasive vein harvesting, hysteroscopy, and aortic valve and pacemaker lead placement.
 
We have four medical simulation product lines: the Virtual IV system, which simulates needle-based procedures such as intravenous catheterization and phlebotomy; the Endoscopy AccuTouch® System, which simulates endoscopic procedures, including bronchoscopy and lower and upper GI procedures; the CathLabVR System, which simulates endovascular interventions including cardiac pacing, angiography, angioplasty, and carotid and coronary stent placement; and the LapVR System, which simulates minimally invasive procedures involving abdominal and pelvic organs. In addition, we sell an arthroscopy surgical simulator for certain arthroscopic surgical procedures on knees and shoulders based on GMV’s insightArthroVR system.
 
These systems are used for training and educational purposes to enable health professionals to feel simulated forces that they would experience during actual medical procedures, such as encountering an arterial obstruction. The systems are designed to provide a realistic training environment augmented by real-time graphics that include anatomic models developed from actual patient data and high-fidelity sound that includes simulated patient responses.
 
All our products are comprised of a hardware system, an interface device, and software modules that include several cases of increasing difficulty, allowing users to develop their skills by experiencing a broad range of pathologies in differing anatomical conditions.
 
We design each product line to maximize the number of procedures that can be simulated with minimal additional customer hardware investment. These systems then enable potential additional sales of software to the installed base of hardware systems. We believe the relatively low price of our software modules provides an opportunity for repeat sales. We currently have over 25 various software modules available that replicate such medical procedures as intravenous catheterization, laparoscopy, bronchoscopy, colonoscopy, cardiac pacing, and carotid and coronary angioplasty.


9


Table of Contents

Products
and Markets



 



We have developed numerous simulation technologies that can be
used for medical training and testing. By enabling a medical
simulator to more fully engage users’ sense of touch, our
technologies can support realistic simulations that are
effective in teaching medical students, doctors, and other
health professionals what it feels like to perform a given
procedure. The use of our simulators allows these professionals
to perfect their practice in an environment that poses no risks
to patients, where mistakes have no dire consequences, and where
animal or cadaver use is unnecessary.


 



In addition, organizations wanting to train customers or sales
staff on medical procedures and on the use of new tools and
medical devices engage us to develop special simulators.
Examples of projects we have completed include simulation of
venous access, minimally invasive vein harvesting, hysteroscopy,
and aortic valve and pacemaker lead placement.


 



We have four medical simulation product lines: the
Virtual IV system, which simulates needle-based procedures
such as intravenous catheterization and phlebotomy; the
Endoscopy
AccuTouch®

System, which simulates endoscopic procedures, including
bronchoscopy and lower and upper GI procedures; the CathLabVR
System, which simulates endovascular interventions including
cardiac pacing, angiography, angioplasty, and carotid and
coronary stent placement; and the LapVR System, which simulates
minimally invasive procedures involving abdominal and pelvic
organs. In addition, we sell an arthroscopy surgical simulator
for certain arthroscopic surgical procedures on knees and
shoulders based on GMV’s insightArthroVR system.


 



These systems are used for training and educational purposes to
enable health professionals to feel simulated forces that they
would experience during actual medical procedures, such as
encountering an arterial obstruction. The systems are designed
to provide a realistic training environment augmented by
real-time graphics that include anatomic models developed from
actual patient data and high-fidelity sound that includes
simulated patient responses.


 



All our products are comprised of a hardware system, an
interface device, and software modules that include several
cases of increasing difficulty, allowing users to develop their
skills by experiencing a broad range of pathologies in differing
anatomical conditions.


 



We design each product line to maximize the number of procedures
that can be simulated with minimal additional customer hardware
investment. These systems then enable potential additional sales
of software to the installed base of hardware systems. We
believe the relatively low price of our software modules
provides an opportunity for repeat sales. We currently have over
25 various software modules available that replicate such
medical procedures as intravenous catheterization, laparoscopy,
bronchoscopy, colonoscopy, cardiac pacing, and carotid and
coronary angioplasty.





9





Table of Contents







Products
and Markets



 



We have developed numerous simulation technologies that can be
used for medical training and testing. By enabling a medical
simulator to more fully engage users’ sense of touch, our
technologies can support realistic simulations that are
effective in teaching medical students, doctors, and other
health professionals what it feels like to perform a given
procedure. The use of our simulators allows these professionals
to perfect their practice in an environment that poses no risks
to patients, where mistakes have no dire consequences, and where
animal or cadaver use is unnecessary.


 



In addition, organizations wanting to train customers or sales
staff on medical procedures and on the use of new tools and
medical devices engage us to develop special simulators.
Examples of projects we have completed include simulation of
venous access, minimally invasive vein harvesting, hysteroscopy,
and aortic valve and pacemaker lead placement.


 



We have four medical simulation product lines: the
Virtual IV system, which simulates needle-based procedures
such as intravenous catheterization and phlebotomy; the
Endoscopy
AccuTouch®

System, which simulates endoscopic procedures, including
bronchoscopy and lower and upper GI procedures; the CathLabVR
System, which simulates endovascular interventions including
cardiac pacing, angiography, angioplasty, and carotid and
coronary stent placement; and the LapVR System, which simulates
minimally invasive procedures involving abdominal and pelvic
organs. In addition, we sell an arthroscopy surgical simulator
for certain arthroscopic surgical procedures on knees and
shoulders based on GMV’s insightArthroVR system.


 



These systems are used for training and educational purposes to
enable health professionals to feel simulated forces that they
would experience during actual medical procedures, such as
encountering an arterial obstruction. The systems are designed
to provide a realistic training environment augmented by
real-time graphics that include anatomic models developed from
actual patient data and high-fidelity sound that includes
simulated patient responses.


 



All our products are comprised of a hardware system, an
interface device, and software modules that include several
cases of increasing difficulty, allowing users to develop their
skills by experiencing a broad range of pathologies in differing
anatomical conditions.


 



We design each product line to maximize the number of procedures
that can be simulated with minimal additional customer hardware
investment. These systems then enable potential additional sales
of software to the installed base of hardware systems. We
believe the relatively low price of our software modules
provides an opportunity for repeat sales. We currently have over
25 various software modules available that replicate such
medical procedures as intravenous catheterization, laparoscopy,
bronchoscopy, colonoscopy, cardiac pacing, and carotid and
coronary angioplasty.





9





Table of Contents







Products
and Markets



 



We have developed numerous simulation technologies that can be
used for medical training and testing. By enabling a medical
simulator to more fully engage users’ sense of touch, our
technologies can support realistic simulations that are
effective in teaching medical students, doctors, and other
health professionals what it feels like to perform a given
procedure. The use of our simulators allows these professionals
to perfect their practice in an environment that poses no risks
to patients, where mistakes have no dire consequences, and where
animal or cadaver use is unnecessary.


 



In addition, organizations wanting to train customers or sales
staff on medical procedures and on the use of new tools and
medical devices engage us to develop special simulators.
Examples of projects we have completed include simulation of
venous access, minimally invasive vein harvesting, hysteroscopy,
and aortic valve and pacemaker lead placement.


 



We have four medical simulation product lines: the
Virtual IV system, which simulates needle-based procedures
such as intravenous catheterization and phlebotomy; the
Endoscopy
AccuTouch®

System, which simulates endoscopic procedures, including
bronchoscopy and lower and upper GI procedures; the CathLabVR
System, which simulates endovascular interventions including
cardiac pacing, angiography, angioplasty, and carotid and
coronary stent placement; and the LapVR System, which simulates
minimally invasive procedures involving abdominal and pelvic
organs. In addition, we sell an arthroscopy surgical simulator
for certain arthroscopic surgical procedures on knees and
shoulders based on GMV’s insightArthroVR system.


 



These systems are used for training and educational purposes to
enable health professionals to feel simulated forces that they
would experience during actual medical procedures, such as
encountering an arterial obstruction. The systems are designed
to provide a realistic training environment augmented by
real-time graphics that include anatomic models developed from
actual patient data and high-fidelity sound that includes
simulated patient responses.


 



All our products are comprised of a hardware system, an
interface device, and software modules that include several
cases of increasing difficulty, allowing users to develop their
skills by experiencing a broad range of pathologies in differing
anatomical conditions.


 



We design each product line to maximize the number of procedures
that can be simulated with minimal additional customer hardware
investment. These systems then enable potential additional sales
of software to the installed base of hardware systems. We
believe the relatively low price of our software modules
provides an opportunity for repeat sales. We currently have over
25 various software modules available that replicate such
medical procedures as intravenous catheterization, laparoscopy,
bronchoscopy, colonoscopy, cardiac pacing, and carotid and
coronary angioplasty.





9





Table of Contents







EXCERPTS ON THIS PAGE:

10-K (12 sections)
Mar 9, 2009
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