Interlink Electronics Reports Third Quarter 2024 Results
Interlink Electronics (NASDAQ: LINK) reported Q3 2024 financial results with revenue of $2.7 million, down 13% year-over-year. The decline was attributed to lower shipments of force-sensor products and printed electronics at Calman Technology subsidiary, partially offset by higher gas-sensor product sales. Gross margin decreased to 41.4% from 47.4% in the prior year quarter. The company reported a net loss of $523,000 compared to a loss of $125,000 in Q3 2023. Cash and cash equivalents stood at $3.8 million at quarter-end. Management remains optimistic about growth prospects for 2025-2026, planning sales team expansion and focusing on new customer acquisition.
Interlink Electronics (NASDAQ: LINK) ha riportato i risultati finanziari del terzo trimestre 2024, con un fatturato di 2,7 milioni di dollari, in calo del 13% rispetto all’anno precedente. La diminuzione è stata attribuita a una riduzione delle spedizioni di prodotti a sensore di forza e di elettronica stampata presso la sussidiaria Calman Technology, parzialmente compensata da un aumento delle vendite di prodotti a sensore di gas. Il margine lordo è sceso al 41,4% rispetto al 47,4% dello stesso trimestre dell’anno precedente. L'azienda ha registrato una perdita netta di 523.000 dollari rispetto a una perdita di 125.000 dollari nel terzo trimestre 2023. Alla fine del trimestre, la società disponeva di 3,8 milioni di dollari in liquidità e disponibilità liquide. La direzione rimane ottimista sulle prospettive di crescita per il 2025-2026, pianificando un'espansione del team di vendita e concentrandosi sull'acquisizione di nuovi clienti.
Interlink Electronics (NASDAQ: LINK) informó los resultados financieros del tercer trimestre de 2024, con ingresos de 2.7 millones de dólares, una disminución del 13% en comparación con el año anterior. La caída se atribuyó a menores envíos de productos de sensores de fuerza y de electrónica impresa de la subsidiaria Calman Technology, compensada en parte por mayores ventas de productos de sensores de gas. El margen bruto se redujo al 41.4% desde el 47.4% del trimestre del año anterior. La compañía reportó una pérdida neta de 523,000 dólares en comparación con una pérdida de 125,000 dólares en el tercer trimestre de 2023. Al final del trimestre, el efectivo y equivalentes de efectivo se situaron en 3.8 millones de dólares. La dirección se mantiene optimista sobre las perspectivas de crecimiento para 2025-2026, planeando la expansión del equipo de ventas y enfocándose en la adquisición de nuevos clientes.
인터링크 일렉트로닉스(NASDAQ: LINK)는 2024년 3분기 재무 결과를 보고하며, 270만 달러의 매출을 기록했으며, 이는 전년 대비 13% 감소한 수치입니다. 감소는 칼만 기술 자회사의 힘 센서 제품과 인쇄전자 제품의 출하량 감소에 기인하며, 가스 센서 제품 판매의 증가로 부분적으로 상쇄되었습니다. 총 이익률은 이전 연도 분기 47.4%에서 41.4%로 감소했습니다. 회사는 2023년 3분기 12만 5천 달러의 손실에 비해 52만 3천 달러의 순손실을 기록했습니다. 분기 말 현금 및 현금성 자산은 380만 달러에 달했습니다. 경영진은 2025-2026년 성장 전망에 대해 낙관적이며, 판매팀 확장을 계획하고 신규 고객 확보에 집중할 계획입니다.
Interlink Electronics (NASDAQ: LINK) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus de 2,7 millions de dollars, en baisse de 13 % par rapport à l'année précédente. Cette baisse a été attribuée à une diminution des expéditions de produits à capteur de force et d'électronique imprimée chez la filiale Calman Technology, partiellement compensée par une augmentation des ventes de produits à capteur de gaz. La marge brute a diminué à 41,4 % contre 47,4 % au cours du trimestre de l'année précédente. L'entreprise a enregistré une perte nette de 523 000 dollars par rapport à une perte de 125 000 dollars au troisième trimestre 2023. À la fin du trimestre, la société avait 3,8 millions de dollars en liquidités. La direction reste optimiste quant aux perspectives de croissance pour 2025-2026, prévoyant une expansion de l'équipe de vente et se concentrant sur l'acquisition de nouveaux clients.
Interlink Electronics (NASDAQ: LINK) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 2,7 Millionen USD, was einem Rückgang von 13 % im Vergleich zum Vorjahr entspricht. Rückgang wurde auf niedrigere Lieferungen von Kraftsensorprodukten und gedruckter Elektronik bei der Tochtergesellschaft Calman Technology zurückgeführt, die teilweise durch höhere Verkäufe von Gassensorprodukten ausgeglichen wurden. Die Bruttomarge fiel auf 41,4 % von 47,4 % im Vorjahresquartal. Das Unternehmen meldete einen Nettverlust von 523.000 USD im Vergleich zu einem Verlust von 125.000 USD im dritten Quartal 2023. Liquidität und Liquide Mittel beliefen sich zum Quartalsende auf 3,8 Millionen USD. Das Management bleibt optimistisch hinsichtlich der Wachstumsaussichten für 2025-2026 und plant die Expansion des Vertriebsteams sowie den Fokus auf die Akquisition neuer Kunden.
- Higher sales in Gas and Environmental Sensors division
- Strong pipeline of prospective customers for force-sensor and gas-sensor opportunities
- $3.8 million cash position maintained
- Revenue declined 13% YoY to $2.7 million in Q3 2024
- Gross margin decreased to 41.4% from 47.4% YoY
- Net loss widened to $523,000 from $125,000 YoY
- Adjusted EBITDA declined to negative $260,000 from negative $4,000 YoY
Insights
The Q3 2024 results reveal concerning trends with
Revenue for the quarter was approximately
The following table sets forth the consolidated financial results.
Consolidated Financial Results (Amounts in thousands except per share data and percentages) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2024 | 2023 | $ ∆ | % ∆ | 2024 | 2023 | $ ∆ | % ∆ | |||||||||||||||||||||||||
Revenue | $ | 2,671 | $ | 3,075 | $ | (404) | (13.1) | % | $ | 8,693 | $ | 10,402 | $ | (1,709) | (16.4) | % | ||||||||||||||||
Gross profit | $ | 1,105 | $ | 1,459 | $ | (354) | (24.3) | % | $ | 3,663 | $ | 5,107 | $ | (1,444) | (28.3) | % | ||||||||||||||||
Gross margin | 41.4 | % | 47.4 | % | 42.1 | % | 49.1 | % | ||||||||||||||||||||||||
Income (loss) from operations | $ | (476) | $ | (92) | $ | (384) | $ | (1,540) | $ | 141 | $ | (1,681) | ||||||||||||||||||||
Net income (loss) | $ | (523) | $ | (125) | $ | (398) | $ | (1,571) | $ | 65 | $ | (1,636) | ||||||||||||||||||||
Net income (loss) applicable to common stockholders | $ | (623) | $ | (225) | $ | (398) | $ | (1,871) | $ | (235) | $ | (1,636) | ||||||||||||||||||||
Earnings (loss) per common share – diluted | $ | (0.06) | $ | (0.02) | $ | (0.04) | $ | (0.19) | $ | (0.02) | $ | (0.17) | ||||||||||||||||||||
Adjusted EBITDA | $ | (260) | $ | (4) | $ | (256) | $ | (848) | $ | 448 | $ | (1,296) | ||||||||||||||||||||
- Revenue for the third quarter of 2024 decreased
13% to$2.7 million $3.1 million 16% to$8.7 million $10.4 million - Our robust pipeline of prospective customers and orders includes several large force-sensor and gas-sensor opportunities and we continue to expand our product offerings, particularly for air quality solutions and instruments in our Gas and Environmental Sensors division, all of which provide the potential for organic revenue growth in 2025.
- Gross profit margin for the third quarter was
41.4% , down from47.4% in the prior-year, and for the first nine months of 2024 was42.1% , down from49.1% last year, due primarily in each case to the decline in revenue and changes in the mix of products sold. - Net income/loss for the quarter was a loss of
$523,000 $125,000 $1,571,000 $65,000 - Adjusted EBITDA for the three-month periods ended September 30, 2024 and 2023 was negative
$260,000 $4,000 $848,000 $448,000 - We ended the quarter with
$3.8 million
"Despite the challenges we are encountering with several long-term force-sensing customers, we remain very optimistic about our growth prospects for 2025 and 2026," said Steven N. Bronson, Chairman, President, and CEO of Interlink Electronics. "We have adjusted our overall cost structure and increased our efforts to acquire new customers. Additionally, we plan to expand our sales team to drive organic growth and promote our solutions on a global scale."
About Interlink Electronics, Inc.
Interlink Electronics is a world-leading provider of sensors and printed electronic solutions that support a wide range of applications, including Human-Machine Interface ("HMI") devices and Internet-of-Things ("IoT") solutions, utilizing our expertise in materials science, manufacturing, firmware and software to produce in-house system solutions for custom specifications. We have a proven track record of supplying mission-critical technological solutions in diverse markets including medical devices, automotive, gas detection and environmental quality monitoring, oil and gas and general industrial, and consumer electronics, providing standard and custom-designed sensors that provide the flexibility and functionality needed for today's sophisticated applications.
The Company's products and solutions currently focus on three main fields:
- For nearly 40 years, the Company has led the printed electronics industry in commercializing its patented Force Sensing Resistor® technology, which offers pressure and position sensing and rugged capabilities in a very wide range of temperatures. Our piezoelectric film sensors offer strain, bend and vibration sensing and can be used on curved surfaces, while our advanced matrix sensor solutions offer multiple touch capabilities. We supply some of the world's top electronics manufacturers with intuitive sensor and interface technologies for use in advanced applications such as medical robotics and vehicle collision detection.
- Our Gas and Environmental Sensors division has over 25 years of experience in cutting-edge design and manufacture of electrochemical gas-sensing technology for industry, community, health and home. We provide advanced sensor solutions, precision sensing instruments, and custom engineering services for detecting gases such as carbon monoxide, ozone, hydrogen, NOx gases and ammonia, for transdermal alcohol detection and for air quality monitoring. Our innovative printed sensor design enables high-sensitivity, low-power and cost-effective solutions for broad adoption in the rapidly growing IoT market.
- Our Calman Technology subsidiary brings over 30 years of experience in the design and manufacture of membrane keypads, graphic overlays, printed electronics and industrial label products. We offer IP-rated digital and hybrid printed devices featuring integrated backlighting and shielding and printed electronics with advanced materials ink printing. Calman has customers in fields such as medical devices and defense technologies and gives the Company a base in
Europe .
We serve our international customer base from our corporate headquarters 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 projected sales and revenues. 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.
Contact:
Interlink Electronics, Inc.
IR@iefsr.com
Steven N. Bronson, CEO
805-623-4184
INTERLINK ELECTRONICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||
September 30, | December 31, | |||||
2024 | 2023 | |||||
(in thousands) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 3,810 | $ | 4,304 | ||
Accounts receivable, net | 1,174 | 2,167 | ||||
Inventories | 2,494 | 2,476 | ||||
Prepaid expenses and other current assets | 243 | 381 | ||||
Total current assets | 7,721 | 9,328 | ||||
Property, plant and equipment, net | 314 | 313 | ||||
Intangible assets, net | 2,175 | 2,654 | ||||
Goodwill | 2,565 | 2,461 | ||||
Right-of-use assets | 1,155 | 143 | ||||
Deferred tax assets | 87 | 83 | ||||
Other assets | 104 | 80 | ||||
Total assets | $ | 14,121 | $ | 15,062 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | $ | 367 | $ | 464 | ||
Accrued liabilities | 436 | 492 | ||||
Lease liabilities, current | 351 | 126 | ||||
Accrued income taxes | 100 | 293 | ||||
Total current liabilities | 1,254 | 1,375 | ||||
Long-term liabilities | ||||||
Lease liabilities, long term | 870 | 33 | ||||
Deferred tax liabilities | 531 | 626 | ||||
Total long-term liabilities | 1,401 | 659 | ||||
Total liabilities | 2,655 | 2,034 | ||||
Stockholders' equity | ||||||
Preferred stock | 2 | 2 | ||||
Common stock | 10 | 10 | ||||
Additional paid-in-capital | 62,306 | 62,279 | ||||
Accumulated other comprehensive income | 482 | 200 | ||||
Accumulated deficit | (51,334) | (49,463) | ||||
Total stockholders' equity | 11,466 | 13,028 | ||||
Total liabilities and stockholders' equity | $ | 14,121 | $ | 15,062 | ||
INTERLINK ELECTRONICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(in thousands, except per share data) | ||||||||||||
Revenue, net | $ | 2,671 | $ | 3,075 | $ | 8,693 | $ | 10,402 | ||||
Cost of revenue | 1,566 | 1,616 | 5,030 | 5,295 | ||||||||
Gross profit | 1,105 | 1,459 | 3,663 | 5,107 | ||||||||
Operating expenses: | ||||||||||||
Engineering, research and development | 486 | 588 | 1,572 | 1,765 | ||||||||
Selling, general and administrative | 1,095 | 963 | 3,631 | 3,201 | ||||||||
Total operating expenses | 1,581 | 1,551 | 5,203 | 4,966 | ||||||||
Income (loss) from operations | (476) | (92) | (1,540) | 141 | ||||||||
Other income (expense), net | (19) | 26 | 29 | 154 | ||||||||
Income (loss) before income taxes | (495) | (66) | (1,511) | 295 | ||||||||
Income tax expense | 28 | 59 | 60 | 230 | ||||||||
Net income (loss) | $ | (523) | $ | (125) | $ | (1,571) | $ | 65 | ||||
Net (loss) applicable to common stockholders | $ | (623) | $ | (225) | $ | (1,871) | $ | (235) | ||||
Earnings (loss) per common share – basic and diluted | $ | (0.06) | $ | (0.02) | $ | (0.19) | $ | (0.02) | ||||
Weighted average common shares outstanding – basic and diluted | 9,862 | 9,873 | 9,861 | 9,896 | ||||||||
INTERLINK ELECTRONICS, INC. RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO CONSOLIDATED ADJUSTED EBITDA (unaudited) | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(in thousands) | ||||||||||||
Net income (loss) | $ | (523) | $ | (125) | $ | (1,571) | $ | 65 | ||||
Adjustments to arrive at earnings before interest, taxes, | ||||||||||||
Interest income | (14) | (31) | (46) | (129) | ||||||||
Income tax expense | 28 | 59 | 60 | 230 | ||||||||
Depreciation expense | 34 | 42 | 111 | 125 | ||||||||
Amortization expense | 193 | 36 | 571 | 142 | ||||||||
EBITDA | (282) | (19) | (875) | 433 | ||||||||
Adjustments to arrive at Adjusted EBITDA: | ||||||||||||
Stock-based compensation expense | 22 | 15 | 27 | 15 | ||||||||
Adjusted EBITDA | $ | (260) | $ | (4) | $ | (848) | $ | 448 | ||||
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SOURCE Interlink Electronics
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