WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Interlink Electronics, Inc. (OTC: LINK), a global leader in human-machine interface (HMI) and sensor technologies, reported results for the three and six months ended June 30, 2015.
Second Quarter and Six-Month 2015 Financial Results
Revenue in the second quarter of 2015 increased 6% to $2.8 million from $2.7 million in the same year-ago period. For the first six months, revenue increased 16% to $5.1 million from $4.4 million in the comparable period.
Gross margin increased to 51% in the second quarter of 2015 from 48% in the same year-ago period. For the first six months, gross margin improved to 51% from 46% in the comparable period.
Total operating expenses as a percentage of total revenue in the second quarter of 2015 were 35.3% compared to 32.8% in the same year-ago period. For the six month period, total operating expenses as a percentage of total revenue decreased to 37% from 40% in the comparable period
Operating income in the second quarter of 2015 increased 11% to $451,000 from $405,000 in the same year-ago period. For the first six months of 2015, operating income increased 153% to $702,000 from $277,000 in the comparable period.
In the second quarter of 2015, income from continuing operations, net of tax, was $472,000 or $0.08 per basic and diluted share(1) compared to income from continuing operations, net of tax, of $414,000 or $0.07 per basic and diluted share(1) in the same year-ago period. For the first six months, income from continuing operations, net of tax, was $738,000 or $0.13 per basic and diluted share(1), compared to income from continuing operations, net of tax, of $276,000 or $0.05 per basic and diluted share(1) in the comparable period.
Net income for the second quarter of 2015 totaled $481,000 or $0.08 per basic and diluted share, a 14% improvement from $423,000 or $0.07 per basic and diluted share(1) in the same year-ago period. Net income for the first six months increased 158% to $755,000 or $0.13 per basic and diluted share from $293,000 or $0.05 per basic and diluted share in the comparable period.
At quarter-end, the Company had $2.9 million in cash and no debt.
“Since we implemented our turnaround strategy, our business has made tremendous progress, demonstrated by our strong performance in the second quarter,” said Interlink CEO Steven Bronson. “These results were driven by our success in establishing a strong business platform that caters to customers seeking high-quality, force-sensing technology.
“Given the significant opportunities present in the fast growing, human-machine interface industry, we plan to focus more heavily on this higher-margin, emerging area of our business. We intend to leverage the rapidly growing interest in our standard components to identify new opportunities for selling our HMI solutions.
“We are also looking to expand our market share in various industries, including automotive, where longer production cycles present the potential for higher unit sales per design win. In this regard, we see the remainder of 2015 and 2016 representing a transitional period for Interlink, as we make wide-ranging strategic investments in our solutions portfolio. Over the near-term, we do not expect to grow at our historical rates as we pursue opportunities in markets with longer design win cycles.
“Altogether, we believe this strategic transition, coupled with our investments will generate higher long-term growth and profitability, and ultimately, meaningful value for our shareholders.”
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, France and Japan.
For more information, please see our website at www.InterlinkElectronics.com.
Forward Looking Statements
This release contains "forward-looking statements" involving a number of risks and uncertainties as defined in the Private Securities Litigation Reform Act of 1995. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: historical losses and negative cash flow, the success of business divestitures and acquisitions, the ownership of the majority of our stock by a small group of investors, 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, historical weaknesses in internal controls over financial reporting, 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 forward-looking statements contained in this release should be considered in light of these risk factors.
All per-share and weighted average share amounts have been adjusted to retroactively to reflect the four-for-one forward stock split effected on May 29, 2014 and the two-for-one forward stock split effected on February 24, 2015.