Interlink Electronics Reports Third Quarter 2019 Results

CAMARILLO, Calif., Nov. 12, 2019 /PRNewswire/ -- Interlink Electronics, Inc. (OTC: 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 nine months ended September 30, 2019. GAAP net income for the quarter was $111 thousand or $0.02 per share.  

• Revenue in the third quarter of 2019 increased approximately 12.3% to $2.2 million from $1.9 million in the same year-ago period, primarily due to an increase from our medical customer.  
• Gross margin declined to 50.1% from 54.6% due to the product mix in revenues.
• Income from Operations was $203 thousand for the third quarter of 2019, compared with $103 thousand in the same period in 2018. The third quarter of 2019 reflected lower SG&A related costs.
• In the third quarter of 2019, after-tax net income was $111 thousand or $0.02 per basic and diluted share, compared to after-tax net income of $99 thousand or $0.02 per basic and diluted share in the same year-ago period. 
• EBITDA was $262 thousand for the quarter, compared to $176 thousand in the same period in 2018. On a trailing-twelve basis, EBITDA was $439 thousand, as the Company is starting to recover from the first quarter of 2019, which was the only quarter in five years for which the Company did not generate positive EBITDA.  
• The company ended the period with $5.9 million in cash and cash equivalents. Coupled with no debt, its balance sheet remains robust.

"We had a great quarter and have seen stabilization in some industries and a return to growth in other segments. Our continued investment in research and development yielded the release of three new products. The FSR X™ and FSR UX™ usher in the next generation of Force Sensing Resistors and put more control in our customers' hands—allowing them to design solutions with greater freedom thanks to increased dynamic sensing ranges, enhanced precision, and greater stability. The new VersaPad Plus™ features the largest surface available on the rugged notebook touchpad market and gives users the ability to perform multi-touch actions," said Steven N. Bronson, CEO of Interlink Electronics, Inc.

"We also announced the possible listing of our common stock on a United States or foreign stock exchange during 2020. It is important to note that this is being considered based on our strategy to actively pursue acquisitions. In addition, we joined the LoRa Alliance, which will allow us to collaborate with a vast and varying ecosystem of partners to deliver the IoT products and solutions that will drive what we believe will be a major disruptive technological paradigm shift," Mr. Bronson added.

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 advisor and technology partner in the advancing world of human-machine interface (HMI) 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 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 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 our corporate headquarters in Camarillo, California (greater Los Angeles area), our global research and development center in Singapore, our printed-electronics manufacturing facility in Shenzhen, China and our global distribution and logistics center in Hong Kong. We also maintain technical and sales offices in Japan and at various locations in the United States. For more information, please see our website at www.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.

APPENDIX

Consolidated Financial Information and Reconciliations: Third Quarter and Nine Months of 2019

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SOURCE Interlink Electronics, Inc.

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