Interlink Electronics Reports Second Quarter 2020 Results

IRVINE, Calif., Aug. 17, 2020 /PRNewswire/ -- Interlink Electronics, Inc. LINK, a world-leading trusted advisor and technology partner in the advancing world of human-machine interface (HMI) and force-sensing technologies, today announced its financial results for the three and six months ended June 30, 2020.  GAAP net income for the quarter was $13 thousand or $0.00 per share, reflecting an improvement in revenues and income on a sequential quarterly basis.

Consolidated Financial Highlights

(Amounts in thousands except per share data and percentages)

• Revenue in the second quarter of 2020 decreased approximately 15% to $1,702 from $2,006 in the same year-ago period, primarily due to market challenges existing in many of the industries we serve. 
• Gross margin increased to 58.6% from 52.5% due to revenue mix and efficiencies derived from relocation of our medical manufacturing to China from the United States.
• Income from Operations was $41 for the second quarter of 2020, compared with $371 in the same period in 2019. The second quarter of 2019 included receipt of a milestone R&D incentive payment of $179 from the Singapore government. G&A expenses increased by costs associated with our submission of a Form 10 registration statement with the Securities and Exchange Commission, partially offset by a COVID-19 related stimulus grant we received from the Singapore government.  Sales and marketing costs increased as a result of the Company building out its sales and marketing team.
• In the second quarter of 2020, after-tax net income was $13 or $0.00 per basic and diluted share, compared to after-tax net income of $109 or $0.02 per basic and diluted share in the same year-ago period. 
• EBITDA was $95 for the quarter, compared to $464 in the same period in 2019.  On a trailing-twelve basis, EBITDA was loss of $27. 
• The company ended the period with $6,097 in cash and cash equivalents.  Coupled with no debt, its balance sheet remains robust.

"We are pleased with our results in light of the challenging environment created by COVID-19," stated Mr. Bronson, CEO of Interlink. "We are continuing to make investments in our business supported by a new HQ in Irvine and a pending investment and expansion of our Camarillo, California location to include a world-class R&D and materials science lab. During the last six months, in continuing our drive for growth, we hired a new director of global sales and have successfully onboarded multiple new partners around the globe, who are already making an impact by driving fresh opportunities."

Interlink makes available its annual financial statements, quarterly financial statements, and other significant reports and amendments to such reports, free of charge, on its website as soon as reasonably practicable after such reports are prepared.  Please visit www.interlinkelectronics.com to view the Company's financial results in more detail.

About Interlink Electronics, Inc. 

Interlink Electronics is a world-leading trusted provider of HMI, sensor, and IoT solutions. In addition to standard product offerings, Interlink utilizes its expertise in materials science, manufacturing, firmware, and software to produce in-house system solutions for custom applications. For over 35 years, Interlink Electronics has led the printed electronics industry in its commercialization of its patented Force Sensing Resistor® technology. It has provided solutions for handheld user input, menu navigation, cursor control, and other intuitive interface technologies to the world's top electronics manufacturers. These innovative solutions include the VersaPad and the new VersaPad Plus, which boasts the largest active surface area of any resistive touchpad. The company has a proven track record of supplying human machine interface solutions for mission-critical applications in a wide range of markets—including medical, automotive, consumer electronics, telecommunications, and industrial control—providing standard and custom designed sensors that give engineers the flexibility and functionally they seek in today's sophisticated electronic devices. Interlink Electronics serves an international customer base from its headquarters in Irvine, Calif., and a pending world-class materials science lab and R&D center in Camarillo, CA. These are supplemented by strategic global locations that cover manufacturing, distribution, and sales support. For more information, please see our website at InterlinkElectronics.com.

Forward Looking Statements 

This release contains forward-looking statements. Forward-looking statements include, but are not limited to, the Company's views on future financial performance 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 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. 

Non-GAAP Financial Information

A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.

In addition to financial results presented in accordance with GAAP, this press release presents EBITDA and EBITDA margin, each of which is a non-GAAP measure. EBITDA is determined by taking net income and adding interest, income taxes, depreciation and amortization, and EBITDA margin is determined by dividing EBITDA by net revenue.  Interlink believes that these non-GAAP measure, viewed in addition to and not in lieu of net income and gross margin, provide useful information to investors by providing more focused measures of operating results. These metrics are an integral part of Interlink's internal reporting to evaluate its operations and the performance of senior management. A reconciliation of EBITDA to net income, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies.

SOURCE Interlink Electronics, Inc.