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 months ended March 31, 2016.
Highlights
- Revenue increased 24% to $2.8 million from $2.3 million in the same year-ago period with strong growth across automotive, medical and industrial markets. Gross margin increased to 60% in 2016 from 51% in the same year-ago period.
- Total operating expenses as a percentage of total revenue for 2016 were 38% compared to 39% in the same year-ago period while operating income increased 146% to $618,000 in 2016 from $251,000 in 2015.
- Net income for the three months ended March 31, 2016 totaled $606,000, or $0.08 per basic and diluted share, a 121% improvement from $274,000, or $0.04 per basic and diluted share, in the same period in 2015.
- Working capital increased to $7.1 million at March 31, 2016 from $6.5 million at December 31, 2015. At March 31, 2016, the Company had $4.6 million in cash and no debt.
“Our revenue continues to be strong across multiple markets,” stated Steven Bronson, Interlink’s President and CEO. “We are seeing growth in sales of our custom HMI solutions. In addition, sales of our standard product offerings are also growing, demonstrating the adaptability of our standard product technology and providing opportunities to demonstrate our customized HMI solutions to new customers.
“We have begun the build-out of our expanded R&D facility located at the Techpoint property in Singapore. We anticipate occupying our new facility in July of this year, and we intend to grow our R&D team as we move to occupy the new space. We will also continue to explore accelerating our organic growth through the acquisition of synergistic opportunities.
“In this quarter, we once again became an SEC reporting company, and I’m pleased to say we relisted on NASDAQ in April. We anticipate that our return to NASDAQ will be a strategic advantage to Interlink and our shareholders providing us with greater exposure to investors and capital markets,” concluded Mr. Bronson.
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 | ||||||||||
| March 31, | December 31, | |||||||||
| 2016 | 2015 | |||||||||
| (in thousands, except par value) | ||||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 4,615 | $ | 4,435 | ||||||
| Accounts receivable, net | 1,798 | 1,599 | ||||||||
| Inventories | 1,183 | 1,015 | ||||||||
| Prepaid expenses and other current assets | 219 | 298 | ||||||||
| Total current assets | 7,815 | 7,347 | ||||||||
| Property, plant and equipment, net | 159 | 176 | ||||||||
| Intangibles, net | 11 | 13 | ||||||||
| Other assets | 57 | 26 | ||||||||
| Total assets | $ | 8,042 | $ | 7,562 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 401 | $ | 484 | ||||||
| Accrued liabilities | 246 | 304 | ||||||||
| Deferred revenue, current | 71 | 71 | ||||||||
| Total current liabilities | 718 | 859 | ||||||||
| Deferred revenue, long term | 26 | 40 | ||||||||
| Total liabilities | 744 | 899 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' equity | ||||||||||
| 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 March 31, 2016 and December 31, 2015, respectively | 7 | 7 | ||||||||
| Additional paid-in-capital | 60,276 | 60,251 | ||||||||
| Accumulated deficit | (52,985 | ) | (53,595 | ) | ||||||
| Total stockholders' equity | 7,298 | 6,663 | ||||||||
| Total liabilities and stockholders' equity | $ | 8,042 | $ | 7,562 | ||||||
| INTERLINK ELECTRONICS, INC. | |||||||||
| Condensed Consolidated Statements of Income | |||||||||
| Three months ended March 31, | |||||||||
| 2016 | 2015 | ||||||||
| (in thousands, except per share data) | |||||||||
| Revenue, net | $ | 2,805 | $ | 2,257 | |||||
| Cost of revenue | 1,134 | 1,116 | |||||||
| Gross profit | 1,671 | 1,141 | |||||||
| Operating expenses: | |||||||||
| Engineering, research and development | 141 | 161 | |||||||
| Selling, general and administrative | 912 | 729 | |||||||
| Total operating expenses | 1,053 | 890 | |||||||
| Income from operations | 618 | 251 | |||||||
| Other income: | |||||||||
| Interest income | 14 | 12 | |||||||
| Income before income tax expense (benefit) | 632 | 263 | |||||||
| Income tax expense (benefit) | 26 | (11 | ) | ||||||
| Net income | $ | 606 | $ | 274 | |||||
| Earnings per share: basic and diluted | $ | 0.08 | $ | 0.04 | |||||
| Weighted average common shares outstanding - basic | 7,326 | 7,324 | |||||||
| Weighted average common shares outstanding - diluted | 7,391 | 7,324 | |||||||
