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Interlink Electronics Reports Fourth Quarter and Full Year 2019 Results
[May 15, 2020]

Interlink Electronics Reports Fourth Quarter and Full Year 2019 Results


CAMARILLO, Calif., May 15, 2020 /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 fourth quarter and full-year 2019.  GAAP net loss for the full-year 2019, was $(457) thousand or $(0.07) per share, reflecting a decrease of $(1,079) thousand over the prior year's results.  GAAP net loss in the fourth quarter of 2019 was $(363) thousand versus a $46 thousand profit reported in the fourth quarter of 2018.  

Consolidated Financial Highlights

(Amounts in thousands except per share data and percentages)



































Three months ended December 31, 


Year ended December 31, 

Consolidated Financial Results


2019


2018


$ ?


% ?


2019


2018


$ ?


% ?





























Net revenue


$

1,692



$

1,728



$

(36)


(2.1)

%


$

7,305


$

8,904



$

(1,599)


(18.0)

%

Gross profit


$

476



$

897



$

(421)


(46.9)

%


$

3,310


$

4,904



$

(1,594)


(32.5)

%

Gross margin



28.1

%



51.9

%









45.3

%


55.1

%



































Income(loss) from Operations


$

(445)



$

(2)



$

(443)


N/A



$

(214)


$

750



$

(964)


N/A






























Net income (loss)


$

(363)



$

46



$

(409)


N/A



$

(457)


$

622



$

(1,079)


N/A


Earnings per share (basic and diluted)


$

(0.06)



$

0.01









$

(0.07)


$

0.09




































EBITDA


$

(397)



$

73



$

(470)


N/A



$

37


$

999



$

(962)


(96.3)

%

EBITDA margin¹



(23.5)

%



4.2

%









0.5

%


11.2

%












































1

EBITDA margin is EBITDA divided by net revenue.

 

  • Revenue in the fourth quarter of 2019 decreased approximately 2%.  For the full-year 2019, revenue decreased approximately 18% to $7.3 million from $8.9 million in the comparable period of 2018.  Revenues were down in all categories except medical. 
  • Gross margins were impacted by tariffs imposed on our China manufactured items imported to our domestic operations where we are unable to pass along those costs.  In addition, start-up costs for moving our domestic manufacturing for our medical customer to our China operations increased our costs in the short term.
  • In the fourth quarter of 2019, the Company incurred a net loss of $(363) thousand or $(0.06) per share compared to a net profit of $46 thousand or $0.01 per share in the comparable period of 2018.  For the full year, the net loss was $(457) thousand or $(0.07) per basic and diluted share compared to net income of $622 thousand or $0.09 per basic and diluted share in fiscal year 2018.
  • The Company generated approximately $0.4 million of EBITDA in 2019, compared with $1.0 million in 2018.

"We are seeing an impact from Covid-19 across most of the industries we serve, with the exception of the medical vertical, and tariffs continue to be a drag on our products that are manufactured in China," stated Steven N. Bronson, CEO of Interlink Electronics, Inc. "Even with these headwinds, we are moving forward with our strategy to expand into IoT-enabled intelligent sensing applications. We have also continued to build out our global sales and marketing teams with key hires and the signing of strategic global partners. We remain committed to investing in R&D to drive new product development to meet market and customer demands, and we feel we will be well positioned when our customers' business cycles begin to normalize. In addition, we expect to file our Form 10 in June in anticipation of pursuing a listing on a National market or exchange."

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 2019 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.

 

Cision View original content:http://www.prnewswire.com/news-releases/interlink-electronics-reports-fourth-quarter-and-full-year-2019-results-301060134.html

SOURCE OTC Markets Group Inc.


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