Interlink Electronics Reports Fourth Quarter and Full Year 2024 Results
Interlink Electronics (Nasdaq: LINK) reported its Q4 and full-year 2024 financial results, showing declining performance. Q4 revenue decreased to $3.0 million from $3.5 million in Q4 2023, with gross margin falling to 39.6% from 41.0%. Full-year 2024 revenue declined to $11.7 million from $13.9 million, while gross margin dropped to 41.5% from 47.1%.
Notable developments include the acquisition of UK-based Conductive Transfers , expanding into e-textiles and wearables. The company secured two grants: a $400,000 SBIR Phase II grant from NIST for gas sensor manufacturing and a $150,000 SBIR Phase I grant from NASA for air quality monitoring. Interlink also launched the 110-37x sensor family for natural gas leak detection and designated its Fremont facility as corporate headquarters.
Interlink Electronics (Nasdaq: LINK) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, evidenziando una performance in calo. I ricavi del quarto trimestre sono diminuiti a 3,0 milioni di dollari rispetto ai 3,5 milioni di dollari del quarto trimestre 2023, con un margine lordo che è sceso al 39,6% dal 41,0%. I ricavi dell'intero anno 2024 sono diminuiti a 11,7 milioni di dollari rispetto ai 13,9 milioni di dollari, mentre il margine lordo è sceso al 41,5% dal 47,1%.
Sviluppi significativi includono l'acquisizione di Conductive Transfers, con sede nel Regno Unito, espandendosi nel settore degli e-tessuti e dei dispositivi indossabili. L'azienda ha ottenuto due sovvenzioni: una sovvenzione SBIR Fase II di 400.000 dollari da NIST per la produzione di sensori di gas e una sovvenzione SBIR Fase I di 150.000 dollari da NASA per il monitoraggio della qualità dell'aria. Interlink ha anche lanciato la famiglia di sensori 110-37x per la rilevazione di perdite di gas naturale e ha designato il suo stabilimento di Fremont come sede centrale aziendale.
Interlink Electronics (Nasdaq: LINK) informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un rendimiento en declive. Los ingresos del cuarto trimestre disminuyeron a 3,0 millones de dólares desde 3,5 millones de dólares en el cuarto trimestre de 2023, con un margen bruto cayendo al 39,6% desde el 41,0%. Los ingresos del año completo 2024 cayeron a 11,7 millones de dólares desde 13,9 millones de dólares, mientras que el margen bruto se redujo al 41,5% desde el 47,1%.
Desarrollos notables incluyen la adquisición de Conductive Transfers, con sede en el Reino Unido, expandiéndose en e-telas y dispositivos portátiles. La empresa aseguró dos subvenciones: una subvención SBIR Fase II de 400.000 dólares de NIST para la fabricación de sensores de gas y una subvención SBIR Fase I de 150.000 dólares de NASA para el monitoreo de la calidad del aire. Interlink también lanzó la familia de sensores 110-37x para la detección de fugas de gas natural y designó su instalación en Fremont como sede corporativa.
인터링크 일렉트로닉스 (Nasdaq: LINK)는 2024년 4분기 및 연간 재무 결과를 발표하며 성과가 감소하고 있음을 보여주었습니다. 4분기 매출은 2023년 4분기 350만 달러에서 300만 달러로 감소했으며, 총 마진은 41.0%에서 39.6%로 떨어졌습니다. 2024년 연간 매출은 1390만 달러에서 1170만 달러로 감소했으며, 총 마진은 47.1%에서 41.5%로 하락했습니다.
주목할 만한 발전으로는 영국에 본사를 둔 Conductive Transfers의 인수가 있으며, 이는 전자 섬유 및 웨어러블 기기로의 확장을 의미합니다. 이 회사는 두 가지 보조금을 확보했습니다: NIST로부터 가스 센서 제조를 위한 40만 달러의 SBIR 2단계 보조금과 NASA로부터 공기 질 모니터링을 위한 15만 달러의 SBIR 1단계 보조금입니다. 인터링크는 또한 천연 가스 누출 감지를 위한 110-37x 센서 제품군을 출시하고 프리몬트 시설을 본사로 지정했습니다.
Interlink Electronics (Nasdaq: LINK) a publié ses résultats financiers du quatrième trimestre et de l'année complète 2024, montrant une performance en déclin. Les revenus du quatrième trimestre ont diminué à 3,0 millions de dollars contre 3,5 millions de dollars au quatrième trimestre 2023, avec une marge brute tombant à 39,6% contre 41,0%. Les revenus pour l'année complète 2024 ont chuté à 11,7 millions de dollars contre 13,9 millions de dollars, tandis que la marge brute a baissé à 41,5% contre 47,1%.
Parmi les développements notables, on trouve l'acquisition de Conductive Transfers, basée au Royaume-Uni, qui élargit son champ d'action aux e-textiles et aux dispositifs portables. L'entreprise a obtenu deux subventions : une subvention SBIR Phase II de 400 000 dollars de NIST pour la fabrication de capteurs de gaz et une subvention SBIR Phase I de 150 000 dollars de la NASA pour la surveillance de la qualité de l'air. Interlink a également lancé la famille de capteurs 110-37x pour la détection de fuites de gaz naturel et a désigné son site de Fremont comme siège social.
Interlink Electronics (Nasdaq: LINK) hat seine finanziellen Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht, die einen rückläufigen Trend zeigen. Die Einnahmen im vierten Quartal sanken auf 3,0 Millionen Dollar von 3,5 Millionen Dollar im vierten Quartal 2023, während die Bruttomarge von 41,0% auf 39,6% fiel. Die Einnahmen für das Gesamtjahr 2024 gingen auf 11,7 Millionen Dollar von 13,9 Millionen Dollar zurück, während die Bruttomarge von 47,1% auf 41,5% fiel.
Bemerkenswerte Entwicklungen umfassen die Akquisition von Conductive Transfers mit Sitz im Vereinigten Königreich, die eine Expansion in den Bereich E-Textilien und tragbare Technologien darstellt. Das Unternehmen sicherte sich zwei Zuschüsse: einen 400.000-Dollar SBIR Phase II Zuschuss von NIST für die Herstellung von Gassensoren und einen 150.000-Dollar SBIR Phase I Zuschuss von NASA für die Überwachung der Luftqualität. Interlink hat auch die Sensorfamilie 110-37x zur Erkennung von Erdgaslecks eingeführt und seine Einrichtung in Fremont als Unternehmenszentrale festgelegt.
- Secured $400,000 NIST grant for scaling gas sensor production
- Acquired Conductive Transfers , expanding into e-textiles market
- Obtained $150,000 NASA grant for air quality monitoring development
- Improved Q4 net loss to $413,000 from $448,000 year-over-year
- Q4 revenue declined 14.3% to $3.0M from $3.5M year-over-year
- Full-year revenue dropped 15.8% to $11.7M from $13.9M
- Q4 gross margin decreased to 39.6% from 41.0%
- Full-year gross margin fell to 41.5% from 47.1%
- Full-year net loss increased to $2.0M from $383,000
- Adjusted EBITDA declined to -$1.1M from $447,000 positive
Insights
Interlink Electronics' Q4 and full year 2024 results reveal significant financial deterioration that should concern investors. Revenue declined to
Gross profit margins contracted to
While management highlights strategic initiatives like the Conductive Transfers acquisition and new product launches, these haven't translated to financial improvement. The
Despite management's optimistic outlook, the financial reality shows a company facing significant headwinds with its core business. The strategic pivot toward e-textiles and gas sensors may eventually bear fruit, but current investors are shouldering mounting losses with no clear timeline to profitability.
Fourth Quarter 2024 and Recent Operational Highlights
- Acquired
UK -based Conductive Transfers Limited and its affiliate, Global Print Solutions Limited, including their patented processes for integrating electronics with textiles to create functional e-textiles and wearable technology. The strategic acquisition enhances Interlink's capabilities in the high-growth market of wearables and smart textiles, expanding its product offerings across various sectors, including apparel, healthcare, medical, and automotive. - Awarded a
SBIR Phase II grant from NIST to advance high-volume manufacturing techniques for printed gas sensors. This funding will support the development of automated production tools and testing methods essential for scaling sensor output to over 10 million units annually, targeting expanded applications in consumer markets.$400,000 - Awarded a
SBIR Phase I grant from NASA to develop integrated systems and predictive models for early identification of factors affecting air quality. This initiative highlights Interlink's expertise in gas sensor research and aims to create accurate, low-power, and cost-effective outdoor air quality monitoring nodes that seamlessly integrate with NASA's Remote Sensing Network.$150,000 - Unveiled the 110-37x sensor family at CES 2025, introducing industry-first electrochemical sensors capable of detecting Tert-Butyl Mercaptan (TBM) and Tetra-Hydrothiophene (THT), compounds added to natural gas for leak detection. These sensors aim to enhance safety in domestic, commercial, and industrial environments by providing automated and reliable detection of natural gas odorants.
- Strengthened its leadership team with the appointment of Lars Timmer as Senior Business Development Manager in
Europe and the promotions of Declan Flannery to VP of Strategic Alliances and Dr. Sreeni Rao to VP of Product Management. These moves support the company's strategic growth across global markets and product lines. - Designated its new
Fremont, California (Silicon Valley) facility, which drives gas sensor and instrument R&D and product development, as its corporate headquarters.
Management Commentary
"2024 marked the beginning of an exciting new chapter for Interlink, driven by continued innovation, key leadership appointments, and the strategic acquisition of Conductive Transfers Limited," said Steven N. Bronson, Chairman, President, and CEO of Interlink Electronics. "With Conductive Transfers, we've expanded into the high-growth market of e-textiles and wearables, broadening our product offerings across healthcare, apparel, automotive, and more. We also made significant advancements in our sensor technologies, underscored by multiple government grants and the launch of our groundbreaking 110-37x gas sensor family at the outset of 2025.
"As we look toward 2025, we remain focused on driving growth across all divisions of the company. After a year of significant progress, our product portfolio is now strategically positioned for organic growth as we unlock synergies across our network and leverage common sales partners to broaden our footprint. The designation of our
"With a strong capital position, a unified leadership team, and growing demand for our advanced sensor and printed electronics solutions, we believe we are well positioned to deliver long-term value for our shareholders."
Consolidated Financial Results | |||||||||||||||||||||
(Amounts in thousands except per share data and percentages) | |||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
2024 | 2023 | $ ∆ | % ∆ | 2024 | 2023 | $ ∆ | % ∆ | ||||||||||||||
Revenue | $ | 2,986 | $ | 3,538 | $ | (552) | (15.6) % | $ | 11,679 | $ | 13,940 | $ | (2,261) | (16.2) % | |||||||
Gross profit | $ | 1,183 | $ | 1,452 | $ | (269) | (18.5) % | $ | 4,846 | $ | 6,559 | $ | (1,713) | (26.1) % | |||||||
Gross margin | 39.6 % | 41.0 % | 41.5 % | 47.1 % | |||||||||||||||||
Loss from operations | $ | (510) | $ | (570) | $ | 60 | 10.5 % | $ | (2,050) | $ | (439) | $ | (1,611) | (367.0) % | |||||||
Net loss | $ | (413) | $ | (448) | $ | 35 | 7.8 % | $ | (1,984) | $ | (383) | $ | (1,601) | (418.0) % | |||||||
Net loss applicable to common stockholders | $ | (513) | $ | (548) | $ | 35 | 6.4 % | $ | (2,384) | $ | (783) | $ | (1,601) | (204.5) % | |||||||
Earnings (loss) per common share – diluted | $ | (0.05) | $ | (0.06) | $ | 0.01 | 16.7 % | $ | (0.24) | $ | (0.08) | $ | (0.16) | (200.0) % | |||||||
Adjusted EBITDA | $ | (233) | $ | (1) | $ | (232) | $ | (1,081) | $ | 447 | $ | (1,528) | |||||||||
Fourth Quarter 2024 Financial Results
Revenue was
Gross profit margin was
Net loss for the fourth quarter was
Adjusted EBITDA, a non-GAAP financial metric, was
Full Year 2024 Financial Results
Revenue was
Gross profit margin was
Net loss was
Adjusted EBITDA, a non-GAAP financial metric, was
About Interlink Electronics, Inc.
Interlink Electronics is a leading provider of sensors and printed electronic solutions, boasting nearly 40 years of success in delivering mission-critical technologies across diverse markets. Our blue-chip customers benefit from our robust instruments and printed electronics solutions, which span various markets, including industrial, medical, consumer, and automotive. Our expertise in materials science, manufacturing, embedded electronics, firmware, and software enables us to create custom solutions tailored to our customers' unique needs.
We serve our international customer base from our corporate headquarters and proprietary gas sensor production and product development facility in
For more information, please visit www.InterlinkElectronics.com.
Forward Looking Statements
This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements in this press release include statements about our acquisition strategy and prospects, the potential for sales and product development associated with SBIR grants, opportunities for organic growth and synergies, and our projections for growth in demand and sales. 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. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measure
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with
We define Adjusted EBITDA for a particular period as net income (loss) before interest, taxes, depreciation and amortization, and as further adjusted for stock-based compensation expense.
We use this non-GAAP financial measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business operating results, such as amortization expense related to our recent acquisitions. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe this non-GAAP financial measure is useful to investors both because (1) is allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) it is used by our investors to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
Company Contact:
Interlink Electronics, Inc.
Steven N. Bronson, CEO
LINK@IESensors.com
805-623-4184
Investor Relations Contact:
Gateway Group
Matt Glover and Clay Liolios
LINK@IESensors.com
949-574-3860
INTERLINK ELECTRONICS, INC. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(unaudited) | ||||||
December 31, | December 31, | |||||
2024 | 2023 | |||||
(in thousands) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 2,950 | $ | 4,304 | ||
Accounts receivable, net | 1,612 | 2,167 | ||||
Inventories | 2,009 | 2,476 | ||||
Prepaid expenses and other current assets | 328 | 381 | ||||
Total current assets | 6,899 | 9,328 | ||||
Property, plant and equipment, net | 411 | 313 | ||||
Intangible assets, net | 1,874 | 2,654 | ||||
Goodwill | 2,658 | 2,461 | ||||
Right-of-use assets | 1,064 | 143 | ||||
Deferred tax assets | 82 | 83 | ||||
Other assets | 128 | 80 | ||||
Total assets | $ | 13,116 | $ | 15,062 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | $ | 573 | $ | 464 | ||
Accrued liabilities | 377 | 492 | ||||
Lease liabilities, current | 352 | 126 | ||||
Accrued income taxes | 88 | 293 | ||||
Total current liabilities | 1,390 | 1,375 | ||||
Long-term liabilities | ||||||
Lease liabilities, long term | 777 | 33 | ||||
Deferred tax liabilities | 456 | 626 | ||||
Total long-term liabilities | 1,233 | 659 | ||||
Total liabilities | 2,623 | 2,034 | ||||
Stockholders' equity | ||||||
Preferred stock | 2 | 2 | ||||
Common stock | 10 | 10 | ||||
Additional paid-in-capital | 62,313 | 62,279 | ||||
Accumulated other comprehensive income | 15 | 200 | ||||
Accumulated deficit | (51,847) | (49,463) | ||||
Total stockholders' equity | 10,493 | 13,028 | ||||
Total liabilities and stockholders' equity | $ | 13,116 | $ | 15,062 |
INTERLINK ELECTRONICS, INC. | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(in thousands, except per share data) | ||||||||||||
Revenue, net | $ | 2,986 | $ | 3,538 | $ | 11,679 | $ | 13,940 | ||||
Cost of revenue | 1,803 | 2,086 | 6,833 | 7,381 | ||||||||
Gross profit | 1,183 | 1,452 | 4,846 | 6,559 | ||||||||
Operating expenses: | ||||||||||||
Engineering, research and development | 480 | 561 | 2,052 | 2,326 | ||||||||
Selling, general and administrative | 1,213 | 1,471 | 4,844 | 4,672 | ||||||||
Total operating expenses | 1,693 | 2,032 | 6,896 | 6,998 | ||||||||
Loss from operations | (510) | (580) | (2,050) | (439) | ||||||||
Other income (expense), net | 64 | 10 | 93 | 164 | ||||||||
Loss before income taxes | (446) | (570) | (1,957) | (275) | ||||||||
Income tax expense (benefit) | (33) | (122) | 27 | 108 | ||||||||
Net loss | $ | (413) | $ | (448) | $ | (1,984) | $ | (383) | ||||
Net loss applicable to common stockholders | $ | (513) | $ | (548) | $ | (2,384) | $ | (783) | ||||
Earnings (loss) per common share – basic and diluted | $ | (0.05) | $ | (0.06) | $ | (0.24) | $ | (0.08) | ||||
Weighted average common shares outstanding – basic and diluted | 9,864 | 9,860 | 9,862 | 9,887 |
INTERLINK ELECTRONICS, INC. | ||||||||||||
RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO CONSOLIDATED ADJUSTED EBITDA | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(in thousands) | ||||||||||||
Net loss | $ | (413) | $ | (448) | $ | (1,984) | $ | (383) | ||||
Adjustments to arrive at earnings before interest, taxes, depreciation, and amortization (EBITDA): | ||||||||||||
Interest income | (8) | (26) | (54) | (155) | ||||||||
Income tax expense (benefit) | (33) | (122) | 27 | 108 | ||||||||
Depreciation expense | 32 | 75 | 143 | 200 | ||||||||
Amortization expense | 182 | 520 | 753 | 662 | ||||||||
EBITDA | (240) | (1) | (1,115) | 432 | ||||||||
Adjustments to arrive at Adjusted EBITDA: | ||||||||||||
Stock-based compensation expense | 7 | — | 34 | 15 | ||||||||
Adjusted EBITDA | $ | (233) | $ | (1) | $ | (1,081) | $ | 447 |
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SOURCE Interlink Electronics