Interlink Electronics, Inc. Announces Second Quarter and Six Months Ending June 30, 2013 Results
CAMARILLO, Calif.--(BUSINESS WIRE)-- Interlink Electronics, Inc. (OTC: LINK), a global leader in sensor technology, today announced their unaudited results for the second quarter, which includes the three and six months ended June 30, 2013.
Results for Second Quarter (3 months) 2013 vs. 2012
Revenue increased 19.0% to $1,910,000 from $1,605,000;
Gross margin was 46.2%, compared to 51.3%;
Selling, General and Administrative expenses were 39.6% of revenue compared to 31.8%;
Operating loss was ($6,000) as compared to operating income of $110,000;
Loss from continuing operations, net of tax, was ($10,000) or ($0.01) per basic and diluted share, compared to income from continuing operations, net of tax, of $285,000 or $0.39 per basic and diluted share(1), and,
Net loss of ($1,000) or ($0.00) per basic and diluted share compared to net income of $294,000 or $0.40 per basic and diluted share(1).
Results for Six Months Ended June 30, 2013 vs. 2012
Revenue increased 13.2% to $3,736,000 from $3,300,000;
Gross margin was 47.7%, compared to 52.6%;
Selling, General and Administrative expenses were 39.0% of revenue compared to 28.2%;
Operating income was $60,000 compared to $297,000;
Income from continuing operations, net of tax, was $52,000 or $0.07 per basic and diluted share, compared to $469,000 or $0.64 per basic and diluted share(1), and,
Net income decreased to $69,000 or $0.09 per basic and diluted share, from $486,000 or $0.66 per basic and diluted share(1).
Income from continuing operations, net of tax, and net income data for the three and six months ended June 30, 2012 includes a one-time payment of $135,000 from a supplier and non-cash income of $37,000 as a result of the change in the fair value of warrants.
Interlink Electronics has no debt and its stockholders' equity at June 30, 2013 was $3,369,000 or non-GAAP shareholders' equity per share was $4.57, which consisted of $2.29 in non-GAAP cash per share.
"We are pleased to see the revenue growth trajectory continue in Q2/2013 as highlighted by the revenue increases from Q2/2012 by 19.0% and from Q1/2013 by 4.6%. This was driven by the re-structuring efforts that were initiated in 2011, which have resulted in many positive outcomes, including having two automotive customers entering volume production phase in 2013 from a baseline of no automotive customers in 2011," stated Steven N. Bronson, the Chairman and CEO of Interlink Electronics. Mr. Bronson continued, "In Q2/2013 we incurred an expense of $95,457 related to due-diligence work related to a potential acquisition opportunity that ultimately was not consummated. This Q2/2013 due-diligence expense and the $172,000 of one-time favorable income opportunities that occurred in Q2/2012, has collectively resulted in the reduction of our year-over-year net income. The year-over-year reduction in gross margin is attributable to a high-margin legacy customer entering the end of their product life cycle."
"We are excited about the significant increase of opportunities that we see in our 2013 pipeline with Fortune-500 customers from a broad range of markets," stated Howard D. Goldberg, Ph.D., COO of Interlink Electronics. Dr. Goldberg continued, "These opportunities are currently in the early phases of the product commercialization process so the exact timing of the pathway to volume production is not yet fully visible. But each of these opportunities, on a stand-alone basis, has the potential to make a material impact on the business growth of Interlink Electronics. This certainly validates our view that our electronic world is becoming more touch-centric and the need for robust and reliable human-machine interface solutions is growing dramatically."
Interlink Electronics is a world leader in the design of patented Force-Sensing Resistor (FSR®) technology. For over 28 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 human-machine interface ("HMI") solutions for mission-critical and rugged applications.
FORWARD LOOKING STATEMENTS: This release contains "forward-looking statements" involving a number of risks and uncertainties as defined in the Private Securities Litigation Reform Act of 1995. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: historical losses and negative cash flow, the success of business divestitures and acquisitions, the ownership of the majority of our stock by a small group of investors, 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, pending litigation against Interlink Electronics, historical weaknesses in internal controls over financial reporting, 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 forward-looking statements contained in this release should be considered in light of these risk factors.
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