1. LINK reported a net loss of $413K in Q4 2024, improving year-over-year. 2. Revenue decreased by 15.6% in Q4 2024 compared to prior year. 3. Strategic acquisition of Conductive Transfers Limited expands LINK into e-textiles market. 4. LINK's gross margin declined due to unfavorable product mix and lower revenue. 5. Strong leadership team and innovations are aimed at promoting long-term growth.
The acquisition and innovation signify growth potential despite current losses; similar past acquisitions led to stock recoveries before.
Investment in innovative sectors and a broadening product line serves to align LINK with growth trends, making it a potential outlier in tech-driven sectors.
Focus on organic growth and new markets suggests benefits will be realized over time.
Interlink Electronics, Inc. (Nasdaq: LINK) ("Interlink" or the "Company"), a world-leading provider of sensors and printed electronic solutions that support a wide range of applications including Human-Machine Interface devices and Internet-of-Things solutions, today reported financial results for the quarter and year ended December 31, 2024.
"2024 marked the beginning of an exciting new chapter for Interlink, driven by continued innovation, key leadership appointments, and the strategic acquisition of Conductive Transfers Limited," said Steven N. Bronson, Chairman, President, and CEO of Interlink Electronics. "With Conductive Transfers, we've expanded into the high-growth market of e-textiles and wearables, broadening our product offerings across healthcare, apparel, automotive, and more. We also made significant advancements in our sensor technologies, underscored by multiple government grants and the launch of our groundbreaking 110-37x gas sensor family at the outset of 2025.
"As we look toward 2025, we remain focused on driving growth across all divisions of the company. After a year of significant progress, our product portfolio is now strategically positioned for organic growth as we unlock synergies across our network and leverage common sales partners to broaden our footprint. The designation of our Fremont facility as our corporate headquarters further strengthens our presence in the heart of Silicon Valley and supports our global expansion efforts.
"With a strong capital position, a unified leadership team, and growing demand for our advanced sensor and printed electronics solutions, we believe we are well positioned to deliver long-term value for our shareholders."
(Amounts in thousands except per share data and percentages)
Three Months Ended December 31,
Year Ended December 31,
| Category | 2024 | 2023 | $ ∆ | % ∆ |
|---|---|---|---|---|
| Revenue | $2,986 | $3,538 | $(552) | (15.6)% |
| Gross Profit | $1,183 | $1,452 | $(269) | (18.5)% |
Revenue was $3.0 million, compared to $3.5 million in the fourth quarter of 2023. The decrease was primarily driven by lower shipments of traditional force-sensor products, partially offset by higher sales in our Gas and Environmental Sensors division and increased sales of printed electronics and other products at our Calman Technology subsidiary. Revenue was also impacted by fluctuations in customer demand, which can vary from period to period based on customers' order flow and production cycles, affecting both the timing and volume of orders.
Gross profit margin was 39.6%, compared to 41.0% in the year-ago period. The decline was primarily due to lower revenue and a less favorable product mix.
Net loss for the fourth quarter was $413,000, an improvement from a net loss of $448,000 in the same period of 2023. The year-over-year improvement was primarily driven by lower intangible asset amortization expenses related to Calman Technology, as the fourth quarter of 2023 included a $329,000 cumulative catch-up amortization recorded following the finalization of the valuation report and purchase price allocation.
Revenue was $11.7 million, compared to $13.9 million in the prior year. The decrease was primarily driven by lower shipments of traditional force-sensor products, partially offset by higher sales in the Gas and Environmental Sensors division and increased sales of printed electronics and other products at Calman. Revenue was also impacted by fluctuations in customer demand, which can vary from period to period based on customers' order flow and production cycles, affecting both the timing and volume of orders.
Gross profit margin was 41.5%, compared to 47.1% in 2023. The decline was primarily due to lower revenue and a less favorable product mix.
Net loss was $2.0 million, compared to $383,000 in the prior year. The increase was primarily driven by lower revenue and gross profit, partially offset by reduced compensation costs due to a smaller workforce and lower professional services expenses.
Interlink Electronics is a leading provider of sensors and printed electronic solutions, boasting nearly 40 years of success in delivering mission-critical technologies across diverse markets. Our blue-chip customers benefit from our robust instruments and printed electronics solutions, which span various markets, including industrial, medical, consumer, and automotive. Our expertise in materials science, manufacturing, embedded electronics, firmware, and software enables us to create custom solutions tailored to our customers' unique needs.
We serve our international customer base from our corporate headquarters and proprietary gas sensor production and product development facility in Fremont, California (Silicon Valley area); our Global Product Development and Materials Science Center and distribution and logistics center in Camarillo, California; and our advanced printed-electronics manufacturing facilities in Shenzhen, China; Irvine, Scotland; and Barnsley, England.
For more information, please visit www.InterlinkElectronics.com.
This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements in this press release include statements about our acquisition strategy and prospects, the potential for sales and product development associated with SBIR grants, opportunities for organic growth and synergies, and our projections for growth in demand and sales. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the company's industry, R&D initiatives, competition and capital requirements.
Interlink Electronics, Inc.
Steven N. Bronson, CEO
contact@interlinkelectronics.com
805-623-4184
Gateway Group
Matt Glover and Clay Liolios
ir@gatewaygroup.com
949-574-3860