Interlink Electronics Reports 99% Revenue Growth to $4.05 Million in Latest Quarter

Interlink Electronics, Inc. reported significant financial performance improvements in its latest quarterly filing, with net revenue reaching $4.05 million for the three months ended June 30, 2023, a 99% increase from $2.04 million in the same period last year. For the first half of 2023, the company generated $7.33 million in revenue, up from $4.03 million in the first half of 2022. The gross profit for the second quarter was $2.06 million, yielding a gross margin of 50.9%, compared to $952,000 and a 46.7% margin in the prior year. The net income for the quarter was $381,000, or $0.04 per share, a notable increase from $112,000, or $0.00 per share, in the same quarter of 2022.

The company attributed its revenue growth to increased demand in the industrial and medical markets, bolstered by recent acquisitions, including SPEC Sensors and Calman Technology. The industrial sector saw a revenue increase of 26.9%, while the medical sector surged by 212.4%. However, revenues from the consumer and automotive markets declined, reflecting a shift in customer demand and product focus. The overall increase in revenue was also supported by a rise in customer counts and engagement metrics, particularly in the medical sector, where orders have surged post-COVID-19.

Interlink's operational metrics showed a rise in accounts receivable, which increased to $2.15 million from $1.18 million at the end of 2022, reflecting higher shipments. Inventory levels also rose to $2.94 million, up from $2.11 million, indicating a strategic buildup to meet anticipated demand. The company’s employee headcount has increased due to the acquisitions, contributing to higher operating expenses, which totaled $1.66 million for the quarter, up from $1.10 million in the previous year. This included a significant rise in research and development costs, which reached $650,000, reflecting the company's commitment to innovation and product development.

Looking ahead, Interlink Electronics expressed optimism about its growth trajectory, driven by its expanded product offerings and market presence following the acquisitions. The company plans to leverage its enhanced capabilities in sensor technology to capture a larger market share in both existing and new markets. Management indicated that they expect continued revenue growth, particularly in the industrial and medical sectors, as they integrate the newly acquired businesses and capitalize on synergies. The company also highlighted its focus on maintaining a strong balance sheet, with cash and cash equivalents of $5.1 million as of June 30, 2023, which they believe will support ongoing operations and potential future investments.