Interlink Electronics Reports 27% Revenue Growth to $1.991 Million in Q1 2022

Interlink Electronics, Inc. reported a net revenue of $1.991 million for the first quarter of 2022, marking a 27% increase from $1.568 million in the same period of 2021. The company achieved a gross profit of $1.241 million, resulting in a gross margin of 62.3%, up from 55.7% a year earlier. This improvement in profitability was attributed to increased sales volume, favorable product mix, and production efficiencies. The company recorded a net income of $142,000, compared to a net loss of $43,000 in the prior year, translating to earnings per share of $0.01, a significant turnaround from a loss of $0.01 per share in the first quarter of 2021.

In terms of operational metrics, Interlink's customer base saw notable shifts, particularly in the medical and industrial sectors, which contributed to the revenue growth. The medical market experienced a substantial increase in orders, primarily from a key customer, as COVID-19 restrictions eased. Conversely, revenue from the consumer market declined due to a design change by a major client. The automotive sector saw a revival, with Interlink making its first sales in this market since 2018, indicating a strategic re-entry into this segment.

The company’s balance sheet as of March 31, 2022, showed total assets of $13.532 million, a slight decrease from $13.779 million at the end of 2021. Current assets were reported at $12.957 million, with cash and cash equivalents decreasing to $8.130 million from $10.777 million. Total liabilities also decreased to $778,000 from $1.074 million, reflecting improved financial health. The company maintained a strong working capital position of $12.2 million and had no outstanding debt.

Interlink continues to focus on expanding its product offerings and geographic reach. The company operates from multiple locations, including its headquarters in Irvine, California, and a manufacturing facility in Shenzhen, China. Plans are underway to establish a new engineering and research center in the United Kingdom in 2022, which is expected to enhance its development capabilities. The company is also exploring opportunities in the Internet of Things (IoT) market, aiming to integrate its force-sensing technologies with other sensing solutions to capture emerging market demands.

Looking ahead, Interlink Electronics anticipates continued growth driven by increased demand for its Human Machine Interface (HMI) technologies across various sectors. The company is optimistic about its ability to leverage its proprietary technology to address market needs for innovative, user-friendly solutions. However, management acknowledges potential risks, including market volatility and supply chain disruptions, which could impact future performance.