Interlink Electronics, Inc. (OTC: 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 fourth quarter and
full-year 2018. GAAP net income for the full-year 2018, was $622
thousand or $0.09 per share, reflecting a decrease of approximately
51% over the prior year’s results. GAAP net income in the fourth
quarter of 2018 was $46 thousand, versus a $5 thousand net loss
reported in the fourth quarter of 2017.
Consolidated Financial Highlights
(Amounts in thousands except per share data and percentages)
Three months
ended December 31, Year ended December 31,
Consolidated Financial Results 2018 2017 $
∆ % ∆ 2018 2017 $ ∆ % ∆
Net revenue $ 1,728 $ 2,356 $ (628 ) (26.7 ) % $ 8,904 $
11,153 $ (2,249 ) (20.2 ) % Gross profit $ 897 $ 1,402 $ (505 )
(36.0 ) % $ 4,904 $ 6,856 $ (1,952 ) (28.5 ) % Gross margin 51.9 %
59.5 % 55.1 % 61.5 % Income from Operations $ (2 ) $ 237 $
(239 ) N/A $ 750 $ 2,139 $ (1,389 ) (64.9 ) % Net income
(loss) $ 46 $ (5 ) $ 51 N/A $ 622 $ 1,260 $ (638 ) (50.6 ) %
Earnings per share (basic and diluted) $ 0.01 $ (0.00 ) $ 0.09 $
0.17 EBITDA $ 73 $ 253 $ (180 ) (71.1 ) % $ 999 $ 2,275 $
(1,276 ) (56.1 ) %
EBITDA margin1
4.2 % 10.7 % 11.2 % 20.4 %
1 EBITDA margin is EBITDA divided by net
revenue.
- Revenue in the fourth quarter of 2018
decreased approximately 27% to $1.7 million from $2.4 million in
the same year-ago period, primarily due to market challenges
existing in many of the industries we serve. In addition, we lost a
major customer in 2017 and developing replacement revenue is a slow
process that has been felt throughout 2018. For the full-year 2018,
revenue decreased approximately 20% to $8.9 million from $11.2
million in the comparable period of 2017.
- In spite of decreased revenues, gross
margin remained strong at 52% in the fourth quarter of 2017 and 55%
for the full year. Generally gross margin decreased from comparable
periods in 2017 consistent with the decrease in revenues, as less
revenue was available to cover fixed costs and production overhead
costs.
- In the fourth quarter of 2018, net
income increased to $46 thousand or $0.01 per basic and diluted
share, versus a near break-even in the same year-ago period. During
the fourth quarter of 2017, the Company recorded a non-cash and
non-recurring charge of $169 thousand related to a remeasurement of
the deferred tax assets and liabilities as a result of the
enactment of the 2017 Tax Cut and Jobs Act, which was signed into
law on December 22, 2017. For the full year, net income was $622
thousand or $0.09 per basic and diluted share compared to net
income of $1.3 million or $0.22 per basic and diluted share in the
comparable period of 2017.
- The Company generated approximately 1.0
million of EBITDA in 2018, compared with $2.3 million in the
comparable period ending December 31, 2017.
- At December 31, 2018, the company had
$6.1 million in cash and cash equivalents, and no debt.
“We were pleased to finish 2018 on solid ground despite a
challenging market bubble that converged upon us,” stated Steven N.
Bronson, CEO of Interlink Electronics, Inc. “Between the unexpected
loss of a major customer in 2017, the scheduled expiration of
existing long-term contracts, and unprecedented tariffs placed on
several of our products that are manufactured in China, the perfect
storm depressed revenues and profits throughout the year.”
In February, 2019, subsequent to year-end, the Company finalized
intentions to voluntarily delist its common stock from the NASDAQ
Capital Market and deregister its common stock under the Securities
Exchange Act of 1934 and suspend its public reporting obligations.
“The resulting reduction in operating expenses will allow us to
invest greater amounts towards research and development and sales,
which is a superior use of our limited resources,” Mr. Bronson
stated.
On the research and development front, in 2018 Interlink
completed the first phase of a state-of-the-art engineering
facility in Singapore. In addition, the Company is in the process
of creating a new wholly-owned subsidiary, Medtech Sensors Pte
Ltd., which will be a Singapore based corporate innovation
accelerator and technology venture arm of Interlink Electronics,
Inc. Mr. Bronson continued, “We will pursue synergistic
collaboration programs on technology and product development as
well as scientific / PhD talent development with key strategic
partners including funding agencies, venture capital, corporate
labs and research organizations.”
Interlink makes available its annual financial statements,
quarterly financial statements, and other significant reports and
amendments to such reports, free of charge, on its website as soon
as reasonably practicable after such reports are prepared. Please
visit www.interlinkelectronics.com to view the Company’s 2018
financial results in more detail.
About Interlink Electronics, Inc.
Interlink Electronics is a world-leading trusted advisor and
technology partner in the advancing world of human-machine
interface (HMI) and force-sensing technologies. Interlink
Electronics has led the printed electronics industry in its
commercialization of its patented Force-Sensing Resistor (FSR®)
technology, which has enabled rugged and reliable HMI solutions.
For over 30 years, Interlink Electronics' solutions have focused on
handheld user input, menu navigation, cursor control, and other
intuitive interface technologies for the world's top electronics
manufacturers. Interlink Electronics has a proven track record of
supplying HMI solutions for mission-critical applications in a wide
range of markets, including, but not limited to, consumer
electronics, automotive, industrial, and medical devices. Interlink
Electronics serves a world-class customer-base from its our
corporate headquarters in Westlake Village, California (greater Los
Angeles area), our global research and development center in
Singapore, our printed-electronics manufacturing facility in
Shenzhen, China and our global distribution and logistics center in
Hong Kong. We also maintain technical and sales offices in Japan
and at various locations in the United States. For more
information, please see our website at
www.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 The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Non-GAAP Financial Information
A non-GAAP financial measure is a numerical measure of a
company’s performance, financial position, or cash flows that
either excludes or includes amounts that are not normally excluded
or included in the most directly comparable measure calculated and
presented in accordance with generally accepted accounting
principles, or GAAP. Non-GAAP measures are not in accordance with,
nor are they a substitute for, GAAP measures. Other companies may
use different non-GAAP measures and presentation of results.
In addition to financial results presented in accordance with
GAAP, this press release presents EBITDA and EBITDA margin, each of
which is a non-GAAP measure. EBITDA is determined by taking net
income and adding interest, income taxes, depreciation and
amortization, and EBITDA margin is determined by dividing EBITDA by
net revenue. Interlink believes that these non-GAAP measure, viewed
in addition to and not in lieu of net income and gross margin,
provide useful information to investors by providing more focused
measures of operating results. These metrics are an integral part
of Interlink’s internal reporting to evaluate its operations and
the performance of senior management. A reconciliation of EBITDA to
net income, the most comparable GAAP measure, is available in the
accompanying financial tables below. The non-GAAP measures
presented herein may not be comparable to similarly titled measures
presented by other companies.
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version on businesswire.com: https://www.businesswire.com/news/home/20190320005679/en/
Interlink Electronics, Inc.IR@iefsr.comSteven N. Bronson,
CEO805-623-4184