Interlink Electronics Reports 64.6% Revenue Increase to $3.3 Million in Q1 2023

Interlink Electronics, Inc. reported a significant increase in revenue for the first quarter of 2023, achieving net revenue of $3.3 million, up 64.6% from $2.0 million in the same period of 2022. The company's gross profit also rose to $1.6 million, compared to $1.2 million a year earlier, although the gross margin percentage decreased from 62.3% to 48.4%. The increase in revenue was primarily driven by heightened demand in the medical and industrial markets, attributed to ongoing orders from major customers and new business generated from recent acquisitions.

The company experienced a net loss of $191,000 for the quarter, a decline from a net income of $142,000 in the first quarter of 2022. This loss was influenced by increased operating expenses, which rose to $1.8 million from $1.2 million year-over-year. The rise in expenses was largely due to higher costs in research and development, as well as selling, general, and administrative expenses, reflecting the integration of new personnel and operations from the acquisitions of SPEC Sensors and Calman Technology.

Interlink's operational metrics showed a notable increase in accounts receivable, which rose to $2.3 million from $1.2 million at the end of 2022, indicating higher sales activity. The company also reported an increase in inventories, which grew to $3.0 million, reflecting the timing of materials purchases and product shipments. The total liabilities increased significantly to $4.4 million from $1.1 million, primarily due to the addition of liabilities from the Calman acquisition and increased accounts payable.

Strategically, Interlink has expanded its product offerings and market reach through recent acquisitions. The acquisition of SPEC Sensors and KWJ Engineering in December 2022, followed by the acquisition of Calman Technology in March 2023, has enhanced the company's capabilities in gas-sensing technologies and membrane keypads. These acquisitions are expected to provide synergies and broaden the customer base, particularly in the medical and industrial sectors.

Looking ahead, Interlink Electronics anticipates continued growth driven by the integration of its recent acquisitions and the expansion of its product lines. The company aims to leverage its enhanced capabilities to meet increasing market demand, particularly in the medical and industrial sectors. However, management acknowledges potential risks, including market fluctuations and supply chain challenges, which could impact future performance.