Interlink Electronics Reports $7.5M Revenue and $1.67M Net Income for Fiscal Year 2022

Interlink Electronics, Inc. reported a net revenue of $7.5 million for the fiscal year ending December 31, 2022, a slight increase from $7.48 million in 2021. The company experienced a net income of $1.67 million, a significant turnaround from a net loss of $734,000 in the previous year. This improvement in profitability was attributed to a combination of factors, including gains from marketable securities and a reduction in tax expenses, which totaled $271,000 in 2022 compared to $605,000 in 2021.

The company’s financial performance showed notable changes across various market segments. Revenue from the medical sector surged by 69.2% to $1.87 million, driven by increased orders from a major customer. Conversely, revenue from the consumer market declined by 71.4% to $363,000, primarily due to a design change by a key customer. The industrial and automotive markets remained relatively stable, with minor fluctuations in revenue. Overall, the gross profit margin decreased to 51.5% from 54.3% in the prior year, influenced by rising material costs and changes in product mix.

Strategically, Interlink expanded its capabilities through the acquisition of SPEC Sensors, LLC and KWJ Engineering, Inc. in December 2022 for approximately $2.2 million. This acquisition allows Interlink to enhance its gas-sensing technology offerings, which are increasingly in demand due to growing environmental monitoring needs. The company also plans to establish a new engineering and research center in the United Kingdom, further expanding its global footprint and R&D capabilities.

Operationally, Interlink reported an increase in employee headcount to 98 full-time employees as of December 31, 2022, reflecting its commitment to bolstering its engineering and development teams. The company’s manufacturing operations are primarily based in Shenzhen, China, with additional facilities in Newark, California, and a Global Product Development Center in Camarillo, California. International sales accounted for 55% of total revenues, with significant contributions from customers in Japan, China, and Taiwan.

Looking ahead, Interlink Electronics anticipates continued growth in both its force-sensing and gas-sensing technology markets. The company aims to leverage its recent acquisitions and expand its product portfolio to capture emerging market opportunities, particularly in the Internet of Things (IoT) sector. However, management acknowledges potential risks, including supply chain disruptions and competitive pressures, which could impact future performance.