August 15, 2016 09:00 AM Eastern Daylight Time
WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE )–Interlink Electronics, Inc. (NASDAQ: LINK), a global leader in human-machine interface (HMI) and sensor technologies, reported financial results for the three and six months ended June 30, 2016.
Second Quarter and Six-Month 2016 Financial Results
- Revenue in the second quarter of 2016 increased 7% to $3.1 million from $2.8 million in the same year-ago period. For the first six months, revenue increased 15% to $5.9 million from $5.1 million in the comparable period.
- Gross margin increased to 60% in the second quarter of 2016 from 51% in the same year-ago period. For the first six months, gross margin improved to 60% from 51% in the comparable period.
- Total operating expenses as a percentage of total revenue in the second quarter of 2016 were 30% compared to 35% in the same year-ago period. For the six-month period, total operating expenses as a percentage of total revenue were 34% compared to 37% in the comparable period.
- Operating income in the second quarter of 2016 increased 103% to $914,000 from $451,000 in the same year-ago period. For the first six months of 2016, operating income increased 118% to $1,532,000 from $702,000 in the comparable period.
- In the second quarter of 2016, net income totaled $749,000 or $0.10 per basic and diluted share, compared to net income of $481,000 or $0.06 per basic and diluted share in the same year-ago period. For the first six months, net income was $1,355,000 or $0.18 per basic and diluted share compared to net income of $755,000 or $0.10 per basic and diluted share in the comparable period.
- At June 30, 2016 the company has $5.4 million in cash and no debt.
“We are extremely pleased with our financial performance for the quarter,” stated Steven N. Bronson, CEO of Interlink Electronics, Inc. “I am also excited with the recent launch of our expanded Singapore R&D facility and the talent that we are adding to the Interlink team.”
About Interlink Electronics, Inc.
Interlink Electronics is a world-leading trusted advisor and technology partner in the advancing world of human-machine interface 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 human-machine interface (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 human-machine interface 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 corporate headquarters in Westlake Village, California (greater Los Angeles area), global research and development center in Singapore, printed-electronics factory in China, global distribution and warehouse facility in Hong Kong, and offices in North Carolina and Japan. For more information, please see our website at www.interlinkelectronics.com.
Forward Looking Statements
This release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company’s views on future financial performance, market growth, new customers, and new product introductions, 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. These and other risks are more fully described in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. 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.
|INTERLINK ELECTRONICS, INC.|
|Condensed Consolidated Balance Sheets|
|(in thousands, except par value)|
|Cash and cash equivalents||$||5,404||$||
|Accounts receivable, net||1,735||1,599|
|Prepaid expenses and other current assets||208||298|
|Total current assets||8,632||7,347|
|Property, plant and equipment, net||312||176|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Deferred revenue, current||71||71|
|Total current liabilities||961||859|
|Deferred revenue, long term||13||40|
|Commitments and contingencies (see note 9)|
|Preferred stock, $0.01 par value: 1,000 shares authorized, no shares issued or outstanding||—||—|
|Common stock, $0.001 par value: 30,000 shares authorized, 7,326 and 7,326 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively||7||7|
|Total stockholders' equity||8,040||6,663|
|Total liabilities and stockholders' equity||$||9,014||$||7,562|
|INTERLINK ELECTRONICS, INC.|
|Condensed Consolidated Statements of Income|
|Three Months Ended||Six Months Ended|
Three months ended June 30,
Six months ended June 30,
|(in thousands, except per share data)||(in thousands, except per share data)|
|Cost of revenue||1,211||1,387||2,345||2,503|
|Engineering, research and development||174||257||315||418|
|Selling, general and administrative||755||746||1,667||1,475|
|Total operating expenses||929||1,003||1,982||1,893|
|Income from operations||914||451||1,532||702|
|Other income, net||15||30||29||42|
|Income before income tax expense (benefit)||929||481||1,561||744|
|Income tax expense (benefit)||180||–||206||(11||)|
|Earnings per share: basic and diluted||$||0.10||$||0.06||$||0.18||$||0.10|
|Weighted average common shares outstanding – basic||7,326||7,324||7,326||7,324|
|Weighted average common shares outstanding – diluted||7,406||7,324||7,400||7,324|
Interlink Electronics, Inc.
Steven N. Bronson, CEO