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 nine-month periods ended September 30, 2015.
Third Quarter and Nine-Month 2015 Financial Results
Revenue in the third quarter of 2015 decreased 10% to $2.6 million from $2.9 million in the same year-ago period. For the first nine months, revenue increased 6% to $7.7 million from $7.3 million in the comparable period.
Gross margin increased to 57% in the third quarter of 2015 from 50% in the same year-ago period. For the first nine months, gross margin improved to 53% from 48% in the comparable period.
Total operating expenses as a percentage of total revenue in the third quarter of 2015 were 39% compared to 34% in the same year-ago period. For the nine-month period, total operating expenses as a percentage of total revenue were 38% compared to 37% in the comparable period.
Operating income in the third quarter of 2015 increased to $476,000 from $470,000 in the same year-ago period. For the first nine months of 2015, operating income increased to $1.2 million from $747,000 in the comparable period.
In the third quarter of 2015, net income totaled $458,000 or $0.08 per basic and diluted share, compared to net income of $477,000 or $0.08 per basic and diluted share in the same year-ago period. For the first nine months, net income was $1.2 million or $0.21 per basic and diluted share, an increase from net income of $770,000 or $0.13 per basic and diluted share in the comparable period.
At September 30, 2015, the company had $3.6 million in cash and no debt.
“During the quarter, we continued to build on our operational momentum and made significant progress in executing our growth strategy around HMI solutions,” said Steven N. Bronson, CEO of Interlink. “This was demonstrated by our increased gross profit, gross margin and net profitability.
“This bottom line performance also reflects growing customer interest across multiple vertical markets, particularly automotive, where longer production cycles can generate higher unit sales per design win. In fact, we have secured design wins and orders with several existing customers for second-generation installations of our technology. These expanding relationships validate the superior performance, reliability and desirability of Interlink products.
“We are continuing to invest in R&D in order to expand our solutions portfolio and better capitalize on the increasing industry wide demand for HMI solutions. Over the near-term, our R&D investment may affect net income growth. However, it will position us for much greater long-term revenue growth and profitability, and ultimately, drive greater shareholder value.”
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 HMI solutions. For more than 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 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 visit 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.