Interlink Electronics Reports Fourth Quarter and Fiscal Year 2023 Results
Revenue increased 120% from year-ago quarter on acquisitions and organic growth
EBITDA for the year increased $845,000 on revenue growth
IRVINE, Calif., March 21, 2024 /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 devices and Internet-of-Things solutions, today announced its financial results for the three months and year ended December 31, 2023.
Revenue for the quarter was $3.5 million, up 120% from the prior year period on sales from our new gas sensor and membrane keypads operations acquired in December 2022 and March 2023, respectively, and due to increased orders from and shipments to customers of our traditional force-sensor products. This in turn drove an 84% increase in the Company's gross profit to $1.5 million. Revenue for the year was $13.9 million, up 86% from the prior year due to the inclusion of the acquired businesses and also to organic revenue gains.
The following table sets forth the consolidated financial highlights.
Consolidated Financial Highlights
(Amounts in thousands except per share data and percentages)
Three Months Ended December 31,
Year Ended December 31,
Consolidated Financial Results 2023 2022
$ Delta %
Delta 2023 2022
$ Delta % Delta
Revenue $
3,538 $
1,611 $
1,927 119.6 $
13,940 $
7,493 $
6,447 86.0
% %
Gross profit $
1,452 $
796 $
656 82.4 $
6,559 $
3,861 $
2,698 69.9
% %
Gross margin 41.0 49.4 47.1 51.5
% % % %
Loss from operations $
(580) $
(345) $
(235) (68.1)
%
% $
(439) $
(668) $
229 34.3
Net income (loss) $
(448) $
1,412 $
(1,860) (131.7)
%
% $
(383) $
1,672 $
(2,055) (122.9)
Net income (loss) applicable to $
(548) $
1,312 $
(1,860) (141.8)
%
% $
(783) $
1,272 $
(2,055) (161.6)
common stockholders
Earnings (loss) per common $
(0.06) $
0.13 $
(0.19) (146.2)
%
% $
(0.08) $
0.13 $
(0.21) (161.5)
share - diluted
EBITDA $
15 $
(290) $
305 105.2 $
424 $
(421) $
845 200.7
% %
-- Revenue increased 120% to $3.5 million in the fourth quarter of 2023
compared to the prior-year period and increased 86% to $13.9 million for
the year. 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 acquired in December 2022) and
from the Calman Technology Limited membrane keypad and printed
electronics operations acquired in March 2023, and also to increased
sales of our traditional force-sensor products on increased demand from
customers.
-- Gross profit for the quarter increased 82% to $1.5 million compared to
the year-ago quarter due to increased revenues, while gross margin
percentage was down from 49% to 41%. For the year ended December 31,
2023, gross profit was $6.6 million, up 70% from the prior year due to
higher revenues, offset in part by a decline in gross margin percentage
from 52% to 47%. The declines in gross margin percentage for the quarter
and for the year were due to changes in product and customer mix from
new products and customers (primarily from the acquired businesses) and
also to higher materials and components costs on certain orders.
-- EBITDA for the fourth quarter improved from negative $290,000 for the
prior-year period to positive $15,000 in the current year. EBITDA for
the year improved from negative $421,000 in 2022 to positive $424,000 in
2023. These improvements are due to the increases in revenue and gross
profit which more than offset the higher operating expenses from the
additions of the SPEC/KWJ and Calman operations. See the attached
schedule for reconciliations from net income to EBITDA.
-- The Company ended the year with $4.3 million of cash and cash
equivalents.
-- On March 1, 2024, the Board of Directors declared a 50% common stock
dividend with a record date of March 11, 2024, payable March 22, 2024.
Settlement of fractional share interests will be made by issuing one
full share of common stock in lieu of a fractional share. Although the
exact effect on common stock outstanding will depend on the number of
fractional share settlements, the stock dividend is expected to increase
the number of issued and outstanding shares of common stock from
6,573,570 to approximately 9,860,355. For all periods presented, all
share and per share data have been retroactively adjusted for the effect
of the 50% common stock dividend.
"We believe our 2023 activities and results demonstrate our commitment to growth through acquisitions and organic opportunities," said Steven N. Bronson, Chairman, President, and CEO of Interlink Electronics. "We plan to continue to invest in engineering, product development, and sales and marketing resources as we execute on our strategic longer-term growth initiatives."
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 Internet-of-Things ("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,
printed electronics 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.
CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31, December 31,
2023 2022
(in thousands)
ASSETS
Current assets
Cash and cash equivalents $
4,304 $
10,091
Accounts receivable, net 2,167 1,178
Inventories 2,476 2,112
Prepaid expenses and other current assets 381 321
Total current assets 9,328 13,702
Property, plant and equipment, net 313 184
Intangible assets, net 2,654 76
Goodwill 2,461 650
Right-of-use assets 143 172
Deferred tax assets 83 134
Other assets 80 65
Total assets $
15,062 $
14,983
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $
464 $
273
Accrued liabilities 492 568
Lease liabilities, current 126 131
Accrued income taxes 293 117
Total current liabilities 1,375 1,089
Long-term liabilities
Lease liabilities, long term 33 46
Deferred tax liabilities 626
Total long-term liabilities 659 46
Total liabilities 2,034 1,135
Stockholders' equity
Preferred stock 2 2
Common stock 10 10
Additional paid-in-capital 62,279 62,614
Accumulated other comprehensive income (loss) 200 (98)
Accumulated deficit (49,463) (48,680)
Total stockholders' equity 13,028 13,848
Total liabilities and stockholders' equity $
15,062 $
14,983
INTERLINK ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
(in thousands, except per share data)
Revenue, net $
3,538 $
1,611 $
13,940 $
7,493
Cost of revenue 2,086 815 7,381 3,632
Gross profit 1,452 796 6,559 3,861
Operating expenses:
Engineering, research and development 561 308 2,326 1,220
Selling, general and administrative 1,471 833 4,672 3,309
Total operating expenses 2,032 1,141 6,998 4,529
Income (loss) from operations (580) (345) (439) (668)
Other income (expense):
Other income (expense), net 10 1,907 164 2,611
Income (loss) before income taxes (570) 1,562 (275) 1,943
Income tax expense (benefit) (122) 150 108 271
Net income (loss) $
(448) $
1,412 $
(383) $
1,672
Net income (loss) applicable to common stockholders $
(548) $
1,312 $
(783) $
1,272
Earnings (loss) per common share - basic and diluted $
(0.06) $
0.13 $
(0.08) $
0.13
Weighted average common shares outstanding - basic and diluted 9,860 9,911 9,896 9,905
INTERLINK ELECTRONICS, INC.
RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO CONSOLIDATED EBITDA
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
(in thousands)
Net income (loss) $
(448) $
1,412 $
(383) $
1,672
Adjustments to arrive at earnings before interest, other
income/expense, taxes, depreciation, and amortization (EBITDA):
Interest and other (income) expense, net (10) (1,907) (164) (2,611)
Income tax expense (benefit) (122) 150 108 271
Depreciation expense 73 43 198 193
Amortization expense 522 12 665 54
EBITDA $
15 $
(290) $
424 $
(421)
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SOURCE Interlink Electronics
