Interlink Electronics Reports Q1 2024 Revenue Decline and Increased Net Loss

Interlink Electronics, Inc. reported a net revenue of $3.124 million for the first quarter of 2024, a decrease of 4.7% compared to $3.278 million in the same period of 2023. The company's gross profit also declined, falling to $1.253 million, representing a gross margin of 40.1%, down from 48.4% a year earlier. The company experienced a net loss of $741,000, or $0.09 per share, compared to a loss of $191,000, or $0.03 per share, in the prior year. The increase in losses was attributed to higher operating expenses, which rose to $2.004 million from $1.760 million, driven by increased research and development costs and selling, general, and administrative expenses.

In terms of operational performance, Interlink's customer base saw significant shifts, particularly in the industrial and medical markets, where demand from larger force-sensor customers decreased. Revenue from the industrial sector dropped by 34.1%, while medical sales fell by 12.3%. Conversely, revenue from standard products surged by 68.2%, indicating a shift in product demand. The company’s total assets decreased to $14.498 million as of March 31, 2024, down from $15.062 million at the end of 2023, primarily due to a reduction in accounts receivable and intangible assets.

Strategically, Interlink continues to focus on expanding its product offerings and market presence. The company completed the acquisition of Calman Technology Limited in March 2023, which has allowed it to enhance its capabilities in membrane keypads and printed electronics. This acquisition is expected to contribute positively to future revenues, although the immediate impact has been mixed, as reflected in the current financial results. The company also declared a 50% common stock dividend in March 2024, which increased the number of outstanding shares, reflecting a commitment to returning value to shareholders.

Looking ahead, Interlink Electronics anticipates that its ongoing investments in research and development, particularly in the areas of force/touch sensors and gas and environmental sensors, will position the company for future growth. The management remains optimistic about the potential for increased product adoption and market share, especially as it leverages its expanded capabilities from recent acquisitions. However, the company acknowledges the challenges posed by fluctuating customer demand and market conditions, which may impact short-term performance.