IRVINE, Calif., May 6, 2021 /PRNewswire/ -- Interlink
Electronics, Inc. (NASDAQ: LINK), a world-leading trusted advisor
and technology partner in the advancing world of human-machine
interface (HMI) and force-sensing technologies, today announced its
financial results for the three months ended March 31, 2021.
Net revenue for the quarter was $1.6
million, down 7% from the prior year period. Gross margin
was substantially consistent with prior year at 56%. The Company
completed its relisting with Nasdaq in March
2021.
Consolidated Financial Highlights
(Amounts in thousands except per share data and percentages)
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Three months ended
March 31,
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Consolidated Financial Results
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2021
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2020
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$ ∆
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% ∆
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Net
revenue
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$
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1,568
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$
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1,691
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$
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(123)
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(7.3)%
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Gross
profit
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$
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874
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$
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959
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$
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(85)
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(8.9)%
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Gross
margin
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55.7%
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56.7%
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Income (loss) from
operations
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$
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(60)
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$
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(72)
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$
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12
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nm%
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Net income
(loss)
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$
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(43)
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$
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(18)
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$
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(25)
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nm%
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Earnings (loss) per
share – diluted
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$
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(0.01)
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$
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(0.00)
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$
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(0.01)
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nm%
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- Revenue in the first quarter of 2021 decreased 7% to
$1.6 million from $1.7 million in the same year–ago period,
primarily due to lower demand of our custom products in the medical
market and for our standard products, offset by higher higher
demand of our custom products in the industrial and consumer
markets. Demand in the medical market continues to be impacted by
the COVID-19 pandemic which has impacted our customers' ability to
install devices in hospitals, while increases in product volume in
the industrial and consumer products was due to an increase in our
customers' demands and purchases on corresponding products and
programs.
- Gross margin decreased slightly to 55.7% in the current quarter
from 56.7% in the year–ago quarter. Gross margin is impacted by the
mix of products and customers, and operational efficiencies, which
were substantially consistent in both periods.
- Income/loss from operations was an operating loss of
$60 thousand for the first quarter of 2021, compared with an
operating loss of $72 thousand in the same period in 2020.
Operating income/loss was impacted by lower operating expenses in
the current quarter, as a result of forgiveness of the
$186 thousand PPP loan, offset partially by higher legal,
professional, and registration fees associated with relisting on
Nasdaq in March 2021, as well as
continued strategic investments in sales and marketing personnel
and operational and administrative infrastructure.
- In the first quarter of 2021, after–tax net income/loss was a
net loss of $43 thousand, or loss of $0.01 per diluted share, compared to net loss of
$18 thousand, or $0.00 per
diluted share, in the same year–ago period.
- Interlink ended the quarter with $6.1 million in cash and cash
equivalents.
"We have seen a strong rebound in demand for our products during
the first quarter leading to a robust sales pipeline across
multiple industries and based on current momentum we expect to show
year over year revenue growth for the remainder of 2021," said
Steven N. Bronson, Chairman,
President, and CEO of Interlink Electronics. "We have added
additional resources including our new vice president of
engineering and advanced materials as well as key hires within our
sales team.
"In Q1, we also delivered on our promise to uplist on the NASDAQ
Capital Market and are tracking to our other objectives and plans
for continued growth," added Mr. Bronson.
About Interlink Electronics, Inc.
Interlink
Electronics is a world-leading trusted provider of HMI, sensor, and
IoT solutions. 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 35 years, Interlink has led the
printed electronics industry in the commercialization of its
patented Force Sensing Resistor® technology and has
supplied some of the world's top electronics manufacturers with
intuitive sensor and interface technologies like the VersaPad and
the new VersaPad Plus, which boasts the largest active surface area
of any resistive touchpad. 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 functionally they seek in today's
sophisticated electronic devices. Interlink serves an international
customer base from its headquarters in Irvine, California, and pending world-class
materials science lab and R&D center in Camarillo, California. They are supported
by strategic global locations covering manufacturing, distribution,
and sales support. For more information, please visit
InterlinkElectronics.com.
Forward Looking Statements
This release contains
forward-looking statements. Forward-looking statements include, but
are not limited to, the company's views on future financial
performance and are generally identified by phrases such as
"thinks," "anticipates," "believes," "estimates," "expects,"
"intends," "plans," and similar words. 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)
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March
31,
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December 31,
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2021
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2020
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(in thousands, except par value)
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ASSETS
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Current
assets
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Cash and cash
equivalents
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$
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6,098
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$
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6,120
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Restricted
cash
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5
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5
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Accounts receivable,
net
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970
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1,113
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Inventories
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881
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866
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Prepaid expenses and
other current assets
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337
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392
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Total current
assets
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8,291
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8,496
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Property, plant and
equipment, net
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364
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407
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Intangible assets,
net
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179
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195
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Right-of-use
assets
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272
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334
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Deferred tax
assets
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548
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527
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Other assets
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64
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63
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Total
assets
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$
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9,718
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$
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10,022
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Current
liabilities
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Accounts
payable
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$
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286
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$
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235
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Accrued
liabilities
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295
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343
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Lease liabilities,
current
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195
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219
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PPP loan
payable
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—
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186
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Accrued income
taxes
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53
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59
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Total current
liabilities
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829
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1,042
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Long term
liabilities
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Lease liabilities, long
term
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99
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140
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Total long-term
liabilities
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99
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140
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Total
liabilities
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928
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1,182
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Stockholders'
equity
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Preferred
stock
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—
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—
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Common stock
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7
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7
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Additional
paid-in-capital
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57,971
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57,966
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Accumulated other
comprehensive income
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25
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37
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Accumulated
deficit
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(49,213)
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(49,170)
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Total stockholders'
equity
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8,790
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8,840
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Total liabilities and
stockholders' equity
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$
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9,718
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$
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10,022
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INTERLINK ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited)
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Three months ended
March 31,
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2021
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2020
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(in thousands,
except per share data)
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Revenue,
net
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$
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1,568
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$
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1,691
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Cost of
revenue
|
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|
|
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|
694
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732
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Gross
profit
|
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|
|
|
|
|
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874
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959
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Operating
expenses:
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Engineering, research
and development
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217
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285
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Selling, general and
administrative
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717
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746
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Total operating
expenses
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934
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1,031
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Income (loss) from
operations
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(60)
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(72)
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Other income
(expense):
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Other income
(expense), net
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10
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6
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Income (loss) before
income taxes
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(50)
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(66)
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Income tax expense
(benefit)
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(7)
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(48)
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Net income
(loss)
|
|
|
|
|
|
|
|
$
|
(43)
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$
|
(18)
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Earnings (loss) per
share – basic and diluted
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$
|
(0.01)
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$
|
(0.00)
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Weighted average
common shares outstanding – basic
and diluted
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6,601
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6,563
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SOURCE Interlink Electronics