Revenue increased 65% from year ago quarter
on acquisitions and organic growth
IRVINE,
Calif., May 11, 2023 /PRNewswire/ -- Interlink
Electronics, Inc. (NASDAQ: LINK), a world-leading trusted
technology partner in the rapidly advancing world of human-machine
interface (HMI) devices, sensors, membrane keypads and other
cutting-edge technologies, today announced its financial results
for the three months ended March 31,
2023.
Revenue for the quarter was approximately $3.3 million, up 65% from the prior year period
due to revenues from the gas-sensor operations acquired in
December 2022 and increased sales of
the company's traditional force-sensor products. This in turn drove
a 28% increase in the company's gross profit to approximately
$1.6 million.
The following table sets forth the consolidated financial
highlights.
Consolidated Financial Highlights
(Amounts in
thousands except per share data and percentages)
|
|
Three months ended
March 31,
|
Consolidated Financial Results
|
|
|
2023
|
2022
|
|
$ ∆
|
% ∆
|
Revenue
|
|
|
$
|
3,278
|
|
$
|
1,991
|
|
|
$
|
1,287
|
|
64.6
|
%
|
Gross profit
|
|
|
$
|
1,587
|
|
$
|
1,241
|
|
|
$
|
346
|
|
27.9
|
%
|
Gross margin
|
|
|
|
48.4
|
%
|
|
62.3
|
%
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
$
|
(173)
|
|
$
|
18
|
|
|
$
|
(191)
|
|
|
|
Net income
(loss)
|
|
|
$
|
(191)
|
|
$
|
142
|
|
|
$
|
(333)
|
|
|
|
Net income (loss)
applicable to common stockholders
|
|
|
$
|
(291)
|
|
$
|
42
|
|
|
$
|
(333)
|
|
|
|
Earnings (loss) per
common share – diluted
|
|
|
$
|
(0.04)
|
|
$
|
0.01
|
|
|
$
|
(0.05)
|
|
|
|
- Revenue in the first quarter of 2023 increased approximately
65% from the same quarter last year, due primarily to the inclusion
of revenues from the SPEC Sensors and KWJ Engineering
electrochemical gas sensor businesses that were acquired in
December 2022 and also to an increase
in shipments to our medical market customers reflecting the easing
of pandemic restrictions that previously delayed installations of
their products in hospitals settings.
- Gross profit in the first quarter was up 28% compared to the
year ago quarter due to increased revenues, while gross margin
percentage fell from 62% to 48% due primarily to higher materials
and components costs on certain orders (as impacted by the global
chip shortage, which we expect will impact our gross margins
through 2023), fluctuations in production efficiencies in our
manufacturing operations, and changes in customer and product
mix.
- Net income/loss was a loss of $191,000 for the quarter compared with income of
$142,000 in the year ago quarter, due
primarily to higher selling, general and administrative expenses
and research and development costs attributable to the SPEC and KWJ
businesses. The prior period benefited from the inclusion of
$156,000 of gains on marketable
securities, while this quarter included interest income of
$67,000.
- Interlink ended the quarter with $6.7
million of cash and cash equivalents.
"Our traditional force-sensor resistor and human-machine
interface markets saw strong growth in this quarter," said
Steven N. Bronson, Chairman,
President, and CEO of Interlink Electronics. "At the same time, we
are excited for the tremendous potential we see in the gas-sensor
market with SPEC and KWJ, and we are already seeing impressive
performance in membrane keypads and printed circuits with Calman
Technology, which was acquired too late in the quarter to have a
meaningful effect on these results. Overall, we look forward to
building on our current annual revenue run rate of over
$14 million as we explore new markets
and acquisition opportunities."
About Interlink Electronics, Inc.
Interlink Electronics is a world-leading trusted technology
partner in the rapidly advancing world of human-machine interface
(HMI) devices, sensors, membrane keypads and other cutting-edge
technologies. In addition to standard product offerings, Interlink
utilizes its expertise in materials science, manufacturing,
firmware, and software to produce in-house system solutions for
custom applications. For 38 years, Interlink has led the printed
electronics industry to commercialize its patented Force Sensing
Resistor® technology. It has supplied some of the world's top
electronics manufacturers with intuitive sensor and interface
technologies. It also has a proven track record of supplying
technological solutions for mission-critical applications in a
diverse range of markets – including medical, automotive, consumer
electronics, telecommunications, and industrial control – providing
standard and custom-designed sensors that give engineers the
flexibility and functionality they seek in today's sophisticated
electronic devices.
Recent acquisitions have expanded the Company's portfolio of
products and services into new areas. SPEC Sensors and KWJ
Engineering, purchased in December
2022, offer industry-leading design and manufacture of
electrochemical gas-sensing technology for industry, community,
health and home, providing custom solutions, advanced sensors,
innovative products and unique services with uses in fields such as
carbon monoxide and ozone detection and air quality monitoring.
Calman Technology Limited, acquired in March
2023, brings over 25 years of experience in the design and
manufacture of membrane keypads, graphic overlays and label
product, with customers in fields such as medical devices and
defense technologies and operations across the UK and Europe.
Interlink serves an international customer base from our
corporate headquarters in Irvine,
California; our Global Product Development and Materials
Science Center and distribution and logistics center in
Camarillo, California; our
advanced printed-electronics manufacturing facilities in
Shenzhen, China, and Irvine, Scotland; and our proprietary production and
product development facility in Newark,
California.
For more information, please visit
www.InterlinkElectronics.com.
Forward Looking Statements
This release contains "forward-looking statements" within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
generally identified by phrases such as "thinks," "anticipates,"
"believes," "estimates," "expects," "intends," "plans," and similar
words. Forward-looking statements in this press include statements
about our acquisition program, our projected annual revenue run
rate, and the effects of recent acquisitions, including
contributions to our products, manufacturing operations and the
markets we serve. Forward-looking statements are not guarantees of
future performance and are inherently subject to uncertainties and
other factors which could cause actual results to differ materially
from the forward-looking statement. These statements are based
upon, among other things, assumptions made by, and information
currently available to, management, including management's own
knowledge and assessment of the company's industry, R&D
initiatives, competition and capital requirements. Other factors
and uncertainties that could affect the company's forward-looking
statements include, among other things, the following: our success
in predicting new markets and the acceptance of our new products;
efficient management of our infrastructure; the pace of
technological developments and industry standards evolution and
their effect on our target product and market choices; the effect
of outsourcing technology development; changes in the ordering
patterns of our customers; a decrease in the quality and/or
reliability of our products; protection of our proprietary
intellectual property; competition by alternative sophisticated as
well as generic products; continued availability of raw materials
for our products at competitive prices; disruptions in our
manufacturing facilities; risks of international sales and
operations including fluctuations in exchange rates; compliance
with regulatory requirements applicable to our manufacturing
operations; and customer concentrations. Additional factors that
could cause actual results to differ materially from those
anticipated by our forward-looking statements are under the
captions "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in our most
recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q)
filed with the Securities and Exchange Commission. Forward-looking
statements are made as of the date of this release, and we
expressly disclaim any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact:
Interlink Electronics, Inc.
IR@iefsr.com
Steven N. Bronson, CEO
805-623-4184
INTERLINK
ELECTRONICS, INC.
CONENSED CONSOLIDATED BALANCE
SHEETS (unaudited)
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
(in thousands)
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,690
|
|
$
|
10,091
|
Accounts receivable,
net
|
|
|
2,263
|
|
|
1,178
|
Inventories
|
|
|
2,976
|
|
|
2,112
|
Prepaid expenses and
other current assets
|
|
|
505
|
|
|
321
|
Total current
assets
|
|
|
12,434
|
|
|
13,702
|
Property, plant and
equipment, net
|
|
|
309
|
|
|
184
|
Intangible assets,
net
|
|
|
64
|
|
|
76
|
Goodwill
|
|
|
4,856
|
|
|
650
|
Right-of-use
assets
|
|
|
224
|
|
|
172
|
Deferred tax
assets
|
|
|
135
|
|
|
134
|
Other assets
|
|
|
73
|
|
|
65
|
Total
assets
|
|
$
|
18,095
|
|
$
|
14,983
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,969
|
|
$
|
273
|
Accrued
liabilities
|
|
|
530
|
|
|
568
|
Lease liabilities,
current
|
|
|
144
|
|
|
131
|
Accrued income
taxes
|
|
|
630
|
|
|
117
|
Total current
liabilities
|
|
|
4,273
|
|
|
1,089
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
Lease liabilities, long
term
|
|
|
83
|
|
|
46
|
Total long-term
liabilities
|
|
|
83
|
|
|
46
|
Total
liabilities
|
|
|
4,356
|
|
|
1,135
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Preferred
stock
|
|
|
2
|
|
|
2
|
Common stock
|
|
|
7
|
|
|
7
|
Additional
paid-in-capital
|
|
|
62,617
|
|
|
62,617
|
Accumulated other
comprehensive income (loss)
|
|
|
84
|
|
|
(98)
|
Accumulated
deficit
|
|
|
(48,971)
|
|
|
(48,680)
|
Total
stockholders' equity
|
|
|
13,739
|
|
|
13,848
|
Total
liabilities and stockholders' equity
|
|
$
|
18,095
|
|
$
|
14,983
|
INTERLINK
ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
|
|
|
|
Three months ended
March 31,
|
|
|
2023
|
|
2022
|
|
|
|
(in thousands,
except per share data)
|
Revenue, net
|
|
$
|
3,278
|
|
$
|
1,991
|
Cost of
revenue
|
|
|
1,691
|
|
|
750
|
Gross profit
|
|
|
1,587
|
|
|
1,241
|
Operating
expenses:
|
|
|
|
|
|
|
Engineering, research
and development
|
|
|
527
|
|
|
263
|
Selling, general and
administrative
|
|
|
1,233
|
|
|
960
|
Total operating
expenses
|
|
|
1,760
|
|
|
1,223
|
Income (loss) from
operations
|
|
|
(173)
|
|
|
18
|
Other income
(expense):
|
|
|
|
|
|
|
Other income (expense),
net
|
|
|
64
|
|
|
155
|
Income (loss) before
income taxes
|
|
|
(109)
|
|
|
173
|
Income tax
expense
|
|
|
82
|
|
|
31
|
Net income
(loss)
|
|
$
|
(191)
|
|
$
|
142
|
|
|
|
|
|
|
|
Net income (loss)
applicable to common stockholders
|
|
$
|
(291)
|
|
$
|
42
|
Earnings (loss) per
common share – basic and diluted
|
|
$
|
(0.04)
|
|
$
|
0.01
|
Weighted average common
shares outstanding – basic and diluted
|
|
|
6,610
|
|
|
6,602
|
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SOURCE INTERLINK ELECTRONICS