Interlink Electronics Reports Third Quarter 2024 Results
Revenue for the quarter was approximately
The following table sets forth the consolidated financial results.
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Consolidated Financial Results (Amounts in thousands except per share data and percentages) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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$ ∆ |
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% ∆ |
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2024 |
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2023 |
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$ ∆ |
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% ∆ |
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Revenue |
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$ |
2,671 |
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$ |
3,075 |
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$ |
(404) |
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(13.1) |
% |
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$ |
8,693 |
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$ |
10,402 |
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$ |
(1,709) |
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(16.4) |
% |
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Gross profit |
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$ |
1,105 |
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$ |
1,459 |
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$ |
(354) |
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(24.3) |
% |
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$ |
3,663 |
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$ |
5,107 |
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$ |
(1,444) |
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(28.3) |
% |
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Gross margin |
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41.4 |
% |
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47.4 |
% |
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42.1 |
% |
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49.1 |
% |
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Income (loss) from operations |
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$ |
(476) |
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$ |
(92) |
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$ |
(384) |
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$ |
(1,540) |
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$ |
141 |
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$ |
(1,681) |
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Net income (loss) |
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$ |
(523) |
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$ |
(125) |
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$ |
(398) |
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$ |
(1,571) |
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$ |
65 |
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$ |
(1,636) |
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Net income (loss) applicable to common stockholders |
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$ |
(623) |
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$ |
(225) |
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$ |
(398) |
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$ |
(1,871) |
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$ |
(235) |
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$ |
(1,636) |
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Earnings (loss) per common share – diluted |
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$ |
(0.06) |
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$ |
(0.02) |
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$ |
(0.04) |
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$ |
(0.19) |
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$ |
(0.02) |
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$ |
(0.17) |
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Adjusted EBITDA |
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$ |
(260) |
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$ |
(4) |
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$ |
(256) |
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$ |
(848) |
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$ |
448 |
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$ |
(1,296) |
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- Revenue for the third quarter of 2024 decreased 13% to
$2.7 million , compared to$3.1 million for the same quarter last year, due to lower shipments of our traditional force-sensor products and of our printed electronics and other products at our Calman Technology subsidiary, offset in part by higher sales in our Gas and Environmental Sensors division. Revenue for the nine months endedSeptember 30, 2024 decreased 16% to$8.7 million , compared to$10.4 million for the prior year, due to lower shipments of our traditional force-sensor products and of our gas-sensor products, offset in part by the inclusion for the full year-to-date period in 2024 of our printed electronics products at our Calman Technology subsidiary, versus only the March-to-September period in 2023. Our revenues for a particular period are impacted by fluctuations in the timing of receipt and fulfilment of customer orders, which varies based on their demand for their own order-flow and production cycles. - 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 from 47.4% in the prior-year, and for the first nine months of 2024 was 42.1%, down from 49.1% 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 , compared with a loss of$125,000 for the same quarter last year. Net income/loss for the first nine months of 2024 was a loss of$1,571,000 , compared with income of$65,000 for the same period last year. The increases in net loss were due primarily to lower revenue, together with increased intangible asset amortization expense from the recent acquisition of Calman Technology, offset in part by reduced compensation cost on reduced headcount and lower professional services expenses. - Adjusted EBITDA for the three-month periods ended
September 30, 2024 and 2023 was negative$260,000 and negative$4,000 , respectively. Adjusted EBITDA for the nine-month periods endedSeptember 30, 2024 and 2023 was negative$848,000 and positive$448,000 , respectively. - We ended the quarter with
$3.8 million of cash and cash equivalents.
"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
About
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
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:
IR@iefsr.com
805-623-4184
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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
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2024 |
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2023 |
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(in thousands) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
3,810 |
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$ |
4,304 |
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Accounts receivable, net |
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1,174 |
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|
2,167 |
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Inventories |
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2,494 |
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2,476 |
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Prepaid expenses and other current assets |
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243 |
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381 |
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Total current assets |
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7,721 |
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9,328 |
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Property, plant and equipment, net |
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314 |
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313 |
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Intangible assets, net |
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2,175 |
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2,654 |
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2,565 |
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2,461 |
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Right-of-use assets |
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1,155 |
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143 |
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Deferred tax assets |
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87 |
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83 |
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Other assets |
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104 |
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|
80 |
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Total assets |
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$ |
14,121 |
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$ |
15,062 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
367 |
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$ |
464 |
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Accrued liabilities |
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436 |
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|
492 |
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Lease liabilities, current |
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351 |
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126 |
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Accrued income taxes |
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|
100 |
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|
293 |
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Total current liabilities |
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1,254 |
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1,375 |
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Long-term liabilities |
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Lease liabilities, long term |
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870 |
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33 |
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Deferred tax liabilities |
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531 |
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|
626 |
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Total long-term liabilities |
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1,401 |
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|
659 |
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Total liabilities |
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2,655 |
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|
2,034 |
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Stockholders' equity |
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Preferred stock |
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2 |
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2 |
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Common stock |
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10 |
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10 |
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Additional paid-in-capital |
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62,306 |
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62,279 |
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Accumulated other comprehensive income |
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|
482 |
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|
200 |
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Accumulated deficit |
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(51,334) |
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(49,463) |
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Total stockholders' equity |
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11,466 |
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|
13,028 |
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Total liabilities and stockholders' equity |
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$ |
14,121 |
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$ |
15,062 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(in thousands, except per share data) |
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Revenue, net |
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$ |
2,671 |
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$ |
3,075 |
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$ |
8,693 |
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$ |
10,402 |
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Cost of revenue |
|
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1,566 |
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|
1,616 |
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|
5,030 |
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|
5,295 |
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Gross profit |
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1,105 |
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|
1,459 |
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|
3,663 |
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|
5,107 |
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Operating expenses: |
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Engineering, research and development |
|
|
486 |
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|
588 |
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|
1,572 |
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|
1,765 |
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Selling, general and administrative |
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|
1,095 |
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|
963 |
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|
3,631 |
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|
3,201 |
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Total operating expenses |
|
|
1,581 |
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|
1,551 |
|
|
5,203 |
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|
4,966 |
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Income (loss) from operations |
|
|
(476) |
|
|
(92) |
|
|
(1,540) |
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|
141 |
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Other income (expense), net |
|
|
(19) |
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|
26 |
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|
29 |
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|
154 |
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Income (loss) before income taxes |
|
|
(495) |
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|
(66) |
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|
(1,511) |
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|
295 |
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Income tax expense |
|
|
28 |
|
|
59 |
|
|
60 |
|
|
230 |
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Net income (loss) |
|
$ |
(523) |
|
$ |
(125) |
|
$ |
(1,571) |
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$ |
65 |
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Net (loss) applicable to common stockholders |
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$ |
(623) |
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$ |
(225) |
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$ |
(1,871) |
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$ |
(235) |
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Earnings (loss) per common share – basic and diluted |
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$ |
(0.06) |
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$ |
(0.02) |
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$ |
(0.19) |
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$ |
(0.02) |
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Weighted average common shares outstanding – basic and diluted |
|
|
9,862 |
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|
9,873 |
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|
9,861 |
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|
9,896 |
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RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO CONSOLIDATED ADJUSTED EBITDA (unaudited) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(in thousands) |
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Net income (loss) |
|
$ |
(523) |
|
$ |
(125) |
|
$ |
(1,571) |
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$ |
65 |
|
Adjustments to arrive at earnings before interest, taxes, |
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Interest income |
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|
(14) |
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|
(31) |
|
|
(46) |
|
|
(129) |
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Income tax expense |
|
|
28 |
|
|
59 |
|
|
60 |
|
|
230 |
|
Depreciation expense |
|
|
34 |
|
|
42 |
|
|
111 |
|
|
125 |
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Amortization expense |
|
|
193 |
|
|
36 |
|
|
571 |
|
|
142 |
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EBITDA |
|
|
(282) |
|
|
(19) |
|
|
(875) |
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|
433 |
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Adjustments to arrive at Adjusted EBITDA: |
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|
|
|
|
|
|
|
|
|
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Stock-based compensation expense |
|
|
22 |
|
|
15 |
|
|
27 |
|
|
15 |
|
Adjusted EBITDA |
|
$ |
(260) |
|
$ |
(4) |
|
$ |
(848) |
|
$ |
448 |
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SOURCE
