Interlink Electronics Reports 28.4% Revenue Decline in Q2 2024

Interlink Electronics, Inc. reported a decline in financial performance for the second quarter of 2024, with net revenue of $2.9 million, a decrease of 28.4% compared to $4.0 million in the same period of 2023. For the first half of 2024, the company generated $6.0 million in revenue, down 17.8% from $7.3 million in the prior year. The gross profit for the second quarter was $1.3 million, representing a gross margin of 45%, compared to $2.1 million and a 50.9% margin in the previous year. The company reported a net loss of $307,000 for the quarter, compared to a net income of $381,000 in Q2 2023, and a loss of $1.0 million for the first half of 2024, compared to a profit of $190,000 in the same period last year.

The decline in revenue was attributed to lower demand from key customers in the medical, industrial, and consumer markets, which impacted the sales of custom products. While sales of standard products saw a slight increase, the overall demand fluctuations and timing of customer orders contributed to the revenue drop. The company’s operating expenses remained relatively stable, with total operating expenses of $1.6 million for the second quarter, slightly down from $1.7 million in the prior year. However, the increase in selling, general, and administrative expenses was noted, primarily due to higher intangible asset amortization expenses following the acquisition of Calman Technology Limited in March 2023.

Interlink Electronics continues to focus on strategic developments, including the integration of Calman Technology, which has expanded its capabilities in membrane keypads and printed electronics. The company operates in a global market, with significant manufacturing facilities in China, the UK, and the US, and aims to leverage its advanced technology platforms to enhance product offerings. As of June 30, 2024, the company had cash and cash equivalents of $4.0 million, with no outstanding debt, indicating a stable liquidity position despite the operational challenges.

Looking ahead, Interlink Electronics anticipates that the ongoing integration of its acquisitions and the development of new products will support future growth. The company is also exploring potential strategic partnerships to enhance its market position. However, management acknowledged that fluctuations in customer demand and market conditions could continue to impact financial performance in the near term. The company remains committed to maintaining operational efficiency and managing costs effectively to navigate the current economic landscape.