IRVINE,
Calif., Nov. 10, 2022 /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 and nine months ended
September 30, 2022. The following table sets forth the
consolidated financial highlights.

Consolidated
Financial Highlights
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(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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2022
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2021
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$ ∆
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% ∆
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|
|
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2022
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2021
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$ ∆
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% ∆
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Revenue
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|
$
|
1,851
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|
|
$
|
2,223
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|
|
$
|
(372)
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|
(16.7)
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%
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$
|
5,882
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$
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5,855
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$
|
60
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|
1.0
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%
|
Gross profit
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$
|
872
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$
|
1,292
|
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|
$
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(420)
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(32.5)
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%
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$
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3,065
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$
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3,293
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$
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(228)
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(6.9)
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%
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Gross margin
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47.1
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%
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58.1
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%
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52.1
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%
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56.2
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%
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|
Income (loss) from
operations
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$
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(190)
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$
|
259
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$
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(449)
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$
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(323)
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$
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332
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|
$
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(695)
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Net income
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$
|
6
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$
|
223
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|
$
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(217)
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$
|
260
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$
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243
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$
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17
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Net income (loss)
applicable to common stockholders
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$
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(94)
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$
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223
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$
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(317)
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$
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(40)
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$
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243
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$
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(283)
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Earnings (loss) per
common share – diluted
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$
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(0.01)
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$
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0.03
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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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0.04
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$
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(0.05)
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- Revenue in the third quarter of 2022 decreased 17% from the
same quarter last year, with lower shipments of our custom products
to customers in the industrial and consumer markets and lower
shipments of our standard products, offset by higher shipments to
customers in the medical market. This decline was partly due to an
industrial market customer's request to delay shipment on
approximately $0.1 million of
product to a future quarter. Revenue for the 2022 year-to-date
period increased 1% from last year, driven by higher demand of our
custom products in the industrial and medical markets, offset by
lower orders from our consumer market customers, in particular the
loss of a consumer market customer program that had contributed
revenue of approximately $1.3 million in the nine months ended
September 30, 2021. The increase in shipments to our medical
market customers reflects the easing of pandemic restrictions that
previously delayed installations of our products in hospitals and
medical offices. Fluctuations in shipments of our products to our
industrial and consumer market customers are due to variability in
timing of order fulfillment resulting from changes in demand levels
on corresponding products and programs.
- Gross margin decreased to 47.1% in the current quarter from
58.1% in the year‑ago quarter, and to 52.1% for the current
year-to-date period from 56.2% in the prior year-to-date period.
The decreases in gross margin were primarily due 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.
- Income/loss from operations was a loss of $190 thousand
for the third quarter of 2022, compared with income of
$259 thousand in the third quarter of 2021. Income/loss from
operations was a loss of $323 thousand for the year-to-date
period of the current year, compared with income of
$332 thousand in the year-to-date period of 2021. Operating
income/loss in both periods in 2022 was impacted by lower gross
profit and higher engineering expenses in the current year due to
additional employee headcount and increased costs on prototyping
and development activities, and lower engineering expenses in the
prior year due to receipt of an incentive research grant from the
Singapore government. The 2021
year-to-date period also reflects lower selling, general and
administrative expenses due to inclusion of a $186 thousand
benefit from forgiveness of the PPP loan obtained in 2020.
- The Company's net income of $6 thousand in the third
quarter of 2022 and $260 thousand in the 2022 year-to-date
period benefited from gains on marketable securities of
$181 thousand and $562 thousand, respectively. The
Company did not own any marketable securities in the prior year
periods.
- Interlink ended the quarter with $3.9 million of cash and cash equivalents
and $6.6 million of marketable
securities.
"We have invested heavily in executive talent during fiscal 2022
in order to create the foundation from which Interlink can continue
to grow," said Steven N. Bronson,
Chairman, President, and CEO of Interlink Electronics. "These
investments, while depressing short term earnings, help create an
inflection point for Interlink in terms of growth and profitability
which we believe will increase the long-term earnings power of the
company."
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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September
30,
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December 31,
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2022
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2021
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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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$
|
3,889
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$
|
10,777
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|
Restricted
cash
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|
|
—
|
|
|
5
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|
Marketable
securities
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|
|
6,574
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|
|
—
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|
Accounts receivable,
net
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|
|
958
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|
|
1,080
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|
Inventories
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|
|
1,057
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|
|
814
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Prepaid expenses and
other current assets
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|
|
453
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|
|
391
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|
Total current
assets
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|
12,931
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|
|
13,067
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Property, plant and
equipment, net
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|
|
196
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|
|
338
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|
Intangible assets,
net
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|
|
89
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|
|
131
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|
Right-of-use
assets
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|
|
197
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|
|
163
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|
Deferred tax
assets
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|
8
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8
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Other assets
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39
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|
|
72
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Total
assets
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$
|
13,460
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|
$
|
13,779
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Current
liabilities
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Accounts
payable
|
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$
|
358
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$
|
338
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Accrued
liabilities
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|
334
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|
507
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Lease liabilities,
current
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144
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|
138
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Accrued income
taxes
|
|
|
113
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|
|
54
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|
Total current
liabilities
|
|
|
949
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|
|
1,037
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Long-term
liabilities
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Lease liabilities,
long-term
|
|
|
60
|
|
|
37
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|
Total long-term
liabilities
|
|
|
60
|
|
|
37
|
|
Total
liabilities
|
|
|
1,009
|
|
|
1,074
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|
|
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Stockholders'
equity
|
|
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Preferred
stock
|
|
|
2
|
|
|
2
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|
Common stock
|
|
|
7
|
|
|
7
|
|
Additional
paid-in-capital
|
|
|
62,567
|
|
|
62,552
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(133)
|
|
|
96
|
|
Accumulated
deficit
|
|
|
(49,992)
|
|
|
(49,952)
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|
Total stockholders'
equity
|
|
|
12,451
|
|
|
12,705
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Total liabilities and
stockholders' equity
|
|
$
|
13,460
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|
$
|
13,779
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|
INTERLINK
ELECTRONICS, INC.
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
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(unaudited)
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
(in thousands,
except per share data)
|
|
Revenue, net
|
|
$
|
1,851
|
|
$
|
2,223
|
|
$
|
5,882
|
|
$
|
5,855
|
|
Cost of
revenue
|
|
|
979
|
|
|
931
|
|
|
2,817
|
|
|
2,562
|
|
Gross profit
|
|
|
872
|
|
|
1,292
|
|
|
3,065
|
|
|
3,293
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, research
and development
|
|
|
319
|
|
|
105
|
|
|
912
|
|
|
554
|
|
Selling, general and
administrative
|
|
|
743
|
|
|
928
|
|
|
2,476
|
|
|
2,407
|
|
Total operating
expenses
|
|
|
1,062
|
|
|
1,033
|
|
|
3,388
|
|
|
2,961
|
|
Income (loss) from
operations
|
|
|
(190)
|
|
|
259
|
|
|
(323)
|
|
|
332
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
|
207
|
|
|
(6)
|
|
|
704
|
|
|
(25)
|
|
Income before income
taxes
|
|
|
17
|
|
|
253
|
|
|
381
|
|
|
307
|
|
Income tax
expense
|
|
|
11
|
|
|
30
|
|
|
121
|
|
|
64
|
|
Net income
|
|
$
|
6
|
|
$
|
223
|
|
$
|
260
|
|
$
|
243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders
|
|
$
|
(94)
|
|
$
|
223
|
|
$
|
(40)
|
|
$
|
243
|
|
Earnings per common
share – basic and diluted
|
|
$
|
(0.01)
|
|
$
|
0.03
|
|
$
|
(0.01)
|
|
$
|
0.04
|
|
Weighted average common
shares outstanding – basic and diluted
|
|
|
6,603
|
|
|
6,602
|
|
|
6,603
|
|
|
6,601
|
|
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SOURCE Interlink Electronics