Interlink Electronics, Inc. Announces First Quarter 2012 Financial Results

May 16th, 2012 - 07:00 am ET by Business Wire

Interlink Electronics, Inc. Announces First Quarter 2012 Financial Results Interlink Electronics, Inc. (OTC: LINK), a global leader in sensor technology, today announced results for the first quarter ended March 31, 2012. First Quarter 2012 vs. 2011 Revenue ...

Interlink Electronics, Inc. (OTC: LINK), a global leader in sensor technology, today announced results for the first quarter ended March 31, 2012.

First Quarter 2012 vs. 2011

Revenue increased 46.0% to $1,695,000 from $1,161,000;
Gross margin was 53.8%, compared to 39.0%;
Selling, General and Administrative expenses as a percentage of revenue were 24.7%, compared to 61%;
Operating income increased to $187,000 from an operating loss of ($585,000);
Income from continuing operations, net of tax, was $184,000 or $0.25 per basic and diluted share, compared to a loss from continuing operations, net of tax, of ($1,070,000) or ($1.50) per basic and diluted share*; and,
Net income increased to $192,000 or $0.26 per basic and diluted share, from a net loss of ($1,061,000) or ($1.49) per basic and diluted share*.

* Loss from continuing operations, net of tax, and net loss data for the three months ended March 31, 2011 includes a one-time non-cash expense of $487,000 related to the dissolution of its Japanese subsidiary Interlink Kabushiki Kaisya (Co. Ltd). The net loss was attributed to the elimination of the foreign exchange translations and revaluations as of the date of dissolution.

Interlink has no debt and its shareholders’ equity is $3,294,000 ($4.52 per share) which consists of $3.12 in cash per share.

“The first quarter results demonstrate the positive impact of our restructuring efforts. We are pleased with our financial performance, sales momentum and the commitment of our dedicated team worldwide,” states Steven N. Bronson, the Chairman and CEO of Interlink Electronics. “We will continue investing in building our organization and expanding our product offerings to our growing global customer base.”

About Interlink Electronics, Inc.

Interlink Electronics is a world leader in the design of patented Force-Sensing Resistor (FSR™) technology. For over 26 years, Interlink Electronics’ solutions have focused on handheld user input, menu navigation, cursor control & other intuitive interface technologies for the world's top electronics manufacturers. Interlink Electronics has a 15-year track record of supplying touchpads for use in uncompromising, harsh environments.


INTERLINK ELECTRONICS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value)

		March 31, 2012 (Unaudited)			December 31, 2011 (Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,274		$	2,261
Restricted cash		10			10
Accounts receivable, less allowance for doubtful accounts of $6 and $6 at March 31, 2012 and December 31, 2011, respectively		843			634
Inventories, net of reserves of $174 and $140 at March 31, 2012 and December 31, 2011, respectively		627			636
Prepaid expenses and other current assets		201			194

Total current assets		3,955			3,735

Property and equipment, net		167			190
Intangibles, net		72			81
Other assets		42			42

Total assets	$	4,236		$	4,048

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued payables	$	342		$	338
Accrued payroll and other accrued liabilities		224			222
Deferred revenues—current		103			103
Warrants and embedded derivatives—current		37			37

Total current liabilities		706			700

Deferred revenues—non-current		236			250

Total liabilities		942			950

Stockholders’ equity:
Preferred stock, $5.00 par value (100 shares authorized, none issued and outstanding at March 31, 2012 and December 31, 2011, respectively)(1)		—			—
Common stock, $0.00001 par value (50,000 shares authorized, 729 and 729 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively)(1)		60,112			60,108
Accumulated other comprehensive gain		25			25
Accumulated deficit		(56,843	)		(57,035	)

Total stockholders’ equity		3,294			3,098

Total liabilities and stockholders’ equity	$	4,236		$	4,048

⁽¹⁾			Issued and outstanding share amounts reflect the one-for-twenty reverse stock split effected on January 11, 2012.


INTERLINK ELECTRONICS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value)

		Three Months Ended March 31,
		2012			2011

Revenues, net	$	1,695		$	1,161
Cost of revenues (includes stock-based compensation of $0 and $4 for the three months ended March 31, 2012 and 2011, respectively)		783			708

Gross profit		912			453

Operating expenses:
Product development and research (includes stock-based compensation of $0 and $3 for the three months ended March 31, 2012 and 2011, respectively)		306			330
Selling, general and administrative (includes stock-based compensation of $0 and $10 for the three months ended March 31, 2012 and 2011, respectively)		419			708

Total operating expenses		725			1,038

Operating income (loss)		187			(585	)

Other income (expense):
Interest income		2			2
Other expense, net		(3	)		—
Loss on dissolution of subsidiary		—			(487	)

Other income (expense), net		(1	)		(485	)

Income (loss) from continuing operations before provision for income taxes		186			(1,070	)
Provision for income taxes		2			—

Income (loss) from continuing operations, net of tax		184			(1,070	)

Income from discontinued operations, net of tax		8			9

Net income (loss)		192			(1,061	)

Other comprehensive income (expense), net of tax:
Foreign currency translation adjustments		—			1

Comprehensive income (loss)	$	192		$	(1,060	)

Income (loss) per share from continuing operations, net of tax:
Basic and diluted(1)	$	0.25		$	(1.50	)

Earnings per share on discontinued operations, net of tax:
Basic and diluted(1)	$	0.01		$	0.01

Net earnings (loss) per share:
Basic and diluted(1)	$	0.26		$	(1.49	)

Comprehensive income (loss) per share: basic and diluted(1)	$	0.26		$	(1.49	)

Weighted average shares used to calculate each of the per-share amounts above: basic and diluted(1)		729			713

⁽¹⁾			All per share and weighted average share amounts have been adjusted to retroactively reflect the one-for-twenty reverse stock split effected on January 11, 2012.

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, historical weaknesses in internal controls over financial accounting, the continued availability at competitive prices of raw materials for our products, 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.

Contacts :

Interlink Electronics, Inc.
Steven N. Bronson, Chairman & CEO
sbronson@interlinkelectronics.com
805-484-8855, ext. 112

Source(s) : Interlink Electronics, Inc.