IRVINE, Calif., Aug. 10, 2021 /PRNewswire/ -- Interlink
Electronics, Inc. (NASDAQ: LINK), an industry-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
June 30, 2021. Net revenue for the quarter was $2.1 million, up 21% from the prior year period,
and sequentially up 32% from the previous quarter. Gross margin was
55% for the quarter.
Consolidated Financial Highlights
(Amounts in thousands except per share data and percentages)
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Three months ended
June 30,
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Six months ended
June 30,
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Consolidated Financial Results
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2021
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2020
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$ ∆
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% ∆
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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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2,064
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$
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1,702
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$
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362
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21.3
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%
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$
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3,632
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$
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3,393
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$
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239
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7.0
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%
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Gross
profit
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$
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1,127
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$
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998
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$
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129
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12.9
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%
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$
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2,001
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$
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1,957
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$
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44
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2.2
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%
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Gross
margin
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54.6
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%
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58.6
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%
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55.1
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%
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57.7
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%
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Income (loss) from
operations
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$
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133
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$
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41
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$
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93
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nm
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$
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73
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$
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(31)
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$
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104
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nm
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Net income
(loss)
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$
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63
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$
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13
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$
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50
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nm
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$
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20
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$
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(5)
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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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$
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0.00
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$
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(0.00)
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$
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0.00
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nm
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- Revenue in the second quarter of 2021 increased 21% to
$2.1 million from $1.7 million in the same year–ago period,
primarily due to higher demand for our custom products in the
consumer and medical markets. Increases in product volume in the
consumer market was due to an increase in our customers' demands
and purchases on corresponding products and programs, while
increased demand in the medical market was partly a reflection of
the pandemic-impacted levels in the prior year.
- Gross margin decreased to 54.6% in the current quarter from
58.6% in the year–ago quarter. Gross margin is impacted by the mix
of products and customers, and production costs.
- Income from operations was $133 thousand for the second
quarter of 2021, compared with $41 thousand in the same period
in 2020. Operating income was impacted by higher gross profit on
higher revenues, offset partially by higher selling, general and
administrative expenses associated with continued strategic
investments in personnel and operational and administrative
infrastructure.
- In the second quarter of 2021, after–tax net income was
$63 thousand, or $0.01 per
diluted share, compared to $13 thousand, or $0.00 per diluted share, in the same year–ago
period.
- Interlink ended the quarter with $6.2 million in cash and cash
equivalents.
"We are experiencing strong momentum evidenced by our 32%
sequential quarterly revenue growth and our pipeline of new
programs entering into mass production in the next six to twelve
months," said Steven N. Bronson,
Chairman, President, and CEO of Interlink Electronics. "We are also
committed to augmenting our organic growth with acquisitions.
"Our goal is to build a diversified global technology
organization consisting of sensors, test & measurement,
engineering services, and specialty manufacturers of precision
components and solutions," 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 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.
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(unaudited)
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June
30,
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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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6,245
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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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1,173
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1,113
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Inventories
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878
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866
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Prepaid expenses and
other current assets
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168
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392
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Total current
assets
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8,469
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8,496
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Property, plant and
equipment, net
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423
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407
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Intangible assets,
net
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162
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195
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Right-of-use
assets
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258
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334
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Deferred tax
assets
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526
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527
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Other assets
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65
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63
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Total
assets
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$
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9,903
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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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374
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$
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235
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Accrued
liabilities
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300
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343
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Lease liabilities,
current
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189
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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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65
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59
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Total current
liabilities
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928
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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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87
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140
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Total long-term
liabilities
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87
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140
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Total
liabilities
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1,015
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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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60
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37
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Accumulated
deficit
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(49,150)
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(49,170)
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Total stockholders'
equity
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8,888
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8,840
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Total liabilities and
stockholders' equity
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$
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9,903
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$
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10,022
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INTERLINK
ELECTRONICS, INC.
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited)
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Three months ended
June 30,
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Six months ended
June 30,
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2021
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|
2020
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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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$
|
2,064
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$
|
1,702
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$
|
3,632
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$
|
3,393
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Cost of
revenue
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|
937
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|
704
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1,631
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|
1,436
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Gross
profit
|
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1,127
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|
|
998
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2,001
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|
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1,957
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Operating
expenses:
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Engineering, research
and development
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232
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293
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449
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578
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Selling, general and
administrative
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|
762
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664
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1,479
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|
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1,410
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Total operating
expenses
|
|
|
994
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|
957
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1,928
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|
|
1,988
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Income (loss) from
operations
|
|
|
133
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|
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41
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|
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73
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(31)
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Other income
(expense):
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|
|
|
|
|
|
|
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Other income
(expense), net
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|
(29)
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(8)
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|
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(19)
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(2)
|
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Income (loss) before
income taxes
|
|
|
104
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|
|
33
|
|
|
54
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(33)
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|
Income tax expense
(benefit)
|
|
|
41
|
|
|
20
|
|
|
34
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|
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(28)
|
|
Net income
(loss)
|
|
$
|
63
|
|
$
|
13
|
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$
|
20
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$
|
(5)
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Earnings (loss) per
share – basic and diluted
|
|
$
|
0.01
|
|
$
|
0.00
|
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$
|
0.00
|
|
$
|
(0.00)
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Weighted average
common shares outstanding – basic and diluted
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|
|
6,601
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6,580
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|
6,601
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6,571
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SOURCE Interlink Electronics