Interlink Electronics Reports 86% Revenue Growth to $13.9 Million in Fiscal Year 2023

Interlink Electronics, Inc. reported significant financial changes in its fiscal year ending December 31, 2023, with net revenues reaching $13.9 million, an increase of 86% from $7.5 million in 2022. The company experienced a gross profit of $6.6 million, representing a gross margin of 47.1%, although this was a decrease from 51.5% in the previous year. The increase in revenue was primarily attributed to the inclusion of sales from its recent acquisitions of SPEC Sensors and KWJ Engineering, as well as Calman Technology, which contributed to heightened demand for its force-sensing products.

The company’s operating expenses rose to $7.0 million, up from $4.5 million in 2022, driven by increased research and development costs and selling, general, and administrative expenses following the acquisitions. Interlink reported a loss from operations of $439,000, an improvement from a loss of $668,000 in the prior year. However, the overall net loss for the year was $383,000, compared to a net income of $1.7 million in 2022, reflecting the impact of increased operational costs and lower other income.

Strategically, Interlink has expanded its product offerings and market presence through acquisitions. The acquisition of Calman Technology in March 2023 has allowed the company to enhance its capabilities in membrane keypads and printed electronics, while the earlier acquisition of SPEC and KWJ in December 2022 positioned Interlink in the gas and environmental sensing market. These acquisitions are expected to drive future growth by integrating new technologies and expanding into adjacent markets.

Operationally, Interlink's workforce has grown to 107 employees, reflecting the integration of new teams from its acquisitions. The company has also seen a geographic expansion, with international sales constituting 52% of total revenues in 2023, down slightly from 55% in 2022. The company continues to focus on enhancing its product adoption rates and market share, particularly in the medical and industrial sectors, where demand for innovative sensing technologies is increasing.

Looking ahead, Interlink Electronics anticipates continued growth driven by its strategic acquisitions and the development of new technologies. The company aims to leverage its expanded product portfolio to capture emerging market opportunities, particularly in the Internet of Things (IoT) space. However, management acknowledges the challenges posed by market conditions and competition, emphasizing the need for ongoing innovation and adaptation to maintain its competitive edge.