Revenue increased 66% from year-ago quarter
on acquisitions and organic growth
IRVINE,
Calif., Nov. 9, 2023 /PRNewswire/ -- Interlink
Electronics, Inc. (NASDAQ: LINK), a world-leading provider of
sensors and printed electronic solutions that support a wide range
of applications, including Human-Machine Interface ("HMI") devices
and IoT solutions, today announced its financial results for the
three- and nine-month periods ended September 30, 2023.
Revenue for the quarter was $3.1
million, up 66% from the prior year period due to
incremental revenue from the gas-sensor and membrane keypads
operations acquired in December 2022
and March 2023. This in turn drove a
67% increase in the Company's gross profit to $1.5 million. Revenue for the year-to-date period
was $10.4 million, up 77% from the
prior year due to increases in revenue from the gas-sensor
operations, membrane keypads operations, and our traditional
force-sensor products.
The following table sets forth the consolidated financial
highlights.
Consolidated
Financial Highlights
(Amounts in thousands
except per share data and percentages)
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Consolidated
Financial Results
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2023
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2022
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$ ∆
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% ∆
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2023
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2022
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$ ∆
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% ∆
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Revenue
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$
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3,075
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$
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1,851
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$
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1,224
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66.1
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%
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$
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10,402
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$
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5,882
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$
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4,520
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76.8
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%
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Gross profit
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$
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1,459
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$
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872
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$
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587
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67.3
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%
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$
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5,107
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$
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3,065
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$
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2,042
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66.6
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%
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Gross margin
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47.4
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%
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47.1
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%
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49.1
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%
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52.1
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%
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Income (loss) from
operations
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$
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(92)
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$
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(190)
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$
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98
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$
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141
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$
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(323)
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$
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464
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Net income
(loss)
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$
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(125)
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$
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6
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$
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(131)
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$
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65
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$
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260
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$
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(195)
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Net income (loss)
applicable to common stockholders
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$
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(225)
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$
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(94)
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$
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(131)
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$
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(235)
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$
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(40)
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$
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(195)
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Earnings (loss) per
common share – diluted
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$
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(0.03)
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$
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(0.01)
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$
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(0.02)
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$
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(0.04)
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$
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(0.01)
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$
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(0.03)
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- Revenue increased 66% to $3.1
million in the third quarter of 2023 compared to the
prior-year period, and increased 77% to $10.4 million for the nine-month period. This was
due primarily to the inclusion of revenues from our Gas and
Environmental Sensors division (the SPEC Sensors/KWJ Engineering
electrochemical gas sensor businesses that were acquired in
December 2022) and from the Calman
Technology Limited membrane keypad and printed electronics
operations acquired in March 2023.
The increase in revenue for the nine-month period was also due in
part to an exceptional quarter ended June
30, 2023 in the Company's force-sensor resistor business due
to increased shipments to certain of our medical market
customers.
- Gross profit for the quarter increased 67% to $1.5 million compared to the year-ago quarter due
to increased revenues, while gross margin percentage was flat at
47%. For the nine-month period ended September 30, 2023, gross profit was $5.1 million, up 67% from the prior-year period
due to higher revenues, offset in part by a decline in gross margin
percentage from 52% to 49%. The decline in gross margin percentage
for the nine-month period was due to higher materials and
components costs on certain orders and changes in product and
customer mix.
- Loss from operations for the third quarter narrowed to
$92,000, an improvement from the
$190,000 loss reported for the prior
year period. For the nine months ended September 30, 2023, the Company reported
operating income of $141,000,
compared to an operating loss of $323,000 in the prior year period. These
improvements are due to the increases in gross profit, which more
than offset the higher operating expenses from the additions of the
SPEC/KWJ and Calman operations.
- Net income (loss) applicable to common stockholders was a loss
of $225,000 for the quarter
($0.03 per share), compared to a loss
of $94,000 ($0.01 per share) in the prior-year period, and
was a loss of $235,000 ($0.04 per share) for the nine months ended
September 30, 2023, compared to a
loss of $40,000 ($0.01 per share) in the prior-year period. The
prior-year periods benefited from non-operating income from changes
in the fair value of a marketable securities investment in the
amounts of $181,000 and $562,000 for the three months and nine months
ended September 30, 2022,
respectively, whereas the Company had no such gains in the 2023
periods.
- The Company ended the quarter with $5.2 million of cash and cash
equivalents.
"We are pleased to be on pace to report record-level revenues
for this year," said Steven N.
Bronson, Chairman, President, and CEO of Interlink
Electronics. "And with our robust product portfolio and pipeline of
potential acquisition targets, we are optimistic about our
prospects for continued organic and acquisition-related revenue
growth in the coming years."
About Interlink Electronics, Inc.
Interlink Electronics is a world-leading provider of sensors and
printed electronic solutions that support a wide range of
applications, including Human-Machine Interface ("HMI") devices and
IoT solutions, utilizing our expertise in materials science,
manufacturing, firmware and software to produce in-house system
solutions for custom specifications. We have a proven track record
of supplying mission-critical technological solutions in diverse
markets including medical devices, automotive, gas detection and
environmental quality monitoring, oil and gas and general
industrial, and consumer electronics, providing standard and
custom-designed sensors that provide the flexibility and
functionality needed for today's sophisticated applications.
The Company's products and solutions currently focus on three
main fields:
- For nearly 40 years, the Company has led the printed
electronics industry in commercializing its patented Force Sensing
Resistor® technology, which offers pressure and position sensing
and rugged capabilities in a very wide range of temperatures. Our
piezoelectric film sensors offer strain, bend and vibration sensing
and can be used on curved surfaces, while our advanced matrix
sensor solutions offer multiple touch capabilities. We supply some
of the world's top electronics manufacturers with intuitive sensor
and interface technologies for use in advanced applications such as
medical robotics and vehicle collision detection.
- Our Gas and Environmental Sensors division has over 25 years of
experience in cutting-edge design and manufacture of
electrochemical gas-sensing technology for industry, community,
health and home. We provide advanced sensor solutions, precision
sensing instruments, and custom engineering services for detecting
gases such as carbon monoxide, ozone, hydrogen, NOX gases and
ammonia, for transdermal alcohol detection and for air quality
monitoring. Our innovative printed sensor design enables
high-sensitivity, low-power and cost-effective solutions for broad
adoption in the rapidly growing IOT market.
- Our Calman Technology subsidiary brings over 25 years of
experience in the design and manufacture of membrane keypads,
graphic overlays and industrial label products. We offer IP-rated
digital and hybrid printed devices featuring integrated
backlighting and shielding and printed electronics with advanced
materials ink printing. Calman has customers in fields such as
medical devices and defense technologies and gives the Company a
base in Europe.
We serve our 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 gas-sensor
production and product development facility in Newark, California.
For more information, please visit 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 release include
statements about our projected revenues and earnings, and our
acquisition program 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS (unaudited)
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September 30,
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December 31,
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2023
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2022
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(in thousands)
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ASSETS
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Current
assets
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Cash and cash
equivalents
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|
$
|
5,207
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|
$
|
10,091
|
Accounts receivable,
net
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|
1,622
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|
|
1,178
|
Inventories
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2,875
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2,112
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Prepaid expenses and
other current assets
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226
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321
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Total current
assets
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9,930
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13,702
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Property, plant and
equipment, net
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|
305
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184
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Intangible assets,
net
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|
|
289
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76
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Goodwill
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|
4,392
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650
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Right-of-use
assets
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|
181
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172
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Deferred tax
assets
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128
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134
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Other assets
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|
69
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|
|
65
|
Total
assets
|
|
$
|
15,294
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|
$
|
14,983
|
|
|
|
|
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Current
liabilities
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Accounts
payable
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|
$
|
909
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$
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273
|
Accrued
liabilities
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|
|
443
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|
|
568
|
Lease liabilities,
current
|
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141
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131
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Accrued income
taxes
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|
468
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|
117
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Total current
liabilities
|
|
|
1,961
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|
|
1,089
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Long-term
liabilities
|
|
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|
|
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|
Lease liabilities, long
term
|
|
|
54
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|
|
46
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Total long-term
liabilities
|
|
|
54
|
|
|
46
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Total
liabilities
|
|
|
2,015
|
|
|
1,135
|
|
|
|
|
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|
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Stockholders'
equity
|
|
|
|
|
|
|
Preferred
stock
|
|
|
2
|
|
|
2
|
Common stock
|
|
|
7
|
|
|
7
|
Additional
paid-in-capital
|
|
|
62,282
|
|
|
62,617
|
Accumulated other
comprehensive income (loss)
|
|
|
(97)
|
|
|
(98)
|
Accumulated
deficit
|
|
|
(48,915)
|
|
|
(48,680)
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Total stockholders'
equity
|
|
|
13,279
|
|
|
13,848
|
Total liabilities and
stockholders' equity
|
|
$
|
15,294
|
|
$
|
14,983
|
INTERLINK
ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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|
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|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(in thousands,
except per share data)
|
Revenue, net
|
|
$
|
3,075
|
|
$
|
1,851
|
|
$
|
10,402
|
|
$
|
5,882
|
Cost of
revenue
|
|
|
1,616
|
|
|
979
|
|
|
5,295
|
|
|
2,817
|
Gross profit
|
|
|
1,459
|
|
|
872
|
|
|
5,107
|
|
|
3,065
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, research
and development
|
|
|
588
|
|
|
319
|
|
|
1,765
|
|
|
912
|
Selling, general and
administrative
|
|
|
963
|
|
|
743
|
|
|
3,201
|
|
|
2,476
|
Total operating
expenses
|
|
|
1,551
|
|
|
1,062
|
|
|
4,966
|
|
|
3,388
|
Income (loss) from
operations
|
|
|
(92)
|
|
|
(190)
|
|
|
141
|
|
|
(323)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
|
26
|
|
|
207
|
|
|
154
|
|
|
704
|
Income before income
taxes
|
|
|
(66)
|
|
|
17
|
|
|
295
|
|
|
381
|
Income tax
expense
|
|
|
59
|
|
|
11
|
|
|
230
|
|
|
121
|
Net income
(loss)
|
|
$
|
(125)
|
|
$
|
6
|
|
$
|
65
|
|
$
|
260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
applicable to common stockholders
|
|
$
|
(225)
|
|
$
|
(94)
|
|
$
|
(235)
|
|
$
|
(40)
|
Earnings (loss) per
common share – basic and diluted
|
|
$
|
(0.03)
|
|
$
|
(0.01)
|
|
$
|
(0.04)
|
|
$
|
(0.01)
|
Weighted average common
shares outstanding – basic and diluted
|
|
|
6,582
|
|
|
6,603
|
|
|
6,597
|
|
|
6,603
|
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SOURCE Interlink Electronics