EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

Interlink Electronics Reports 2008 Second Quarter and First Half Results

CAMARILLO, CA (USA), August 13, 2008 — Interlink Electronics, Inc. (OTC: LINK.PK), a worldwide provider of intuitive interface components and solutions, today announced results for the quarter and six-month period ended June 30, 2008.

The company reported total second quarter revenues of $6.7 million, up 76 percent from $3.8 million in the second quarter of 2007. Gross profit increased to $3.1 million from $1.3 million in the same quarter last year. The Company’s operating loss was $972,000, down from $1.7 million in the second quarter of 2007. These results include charges for share-based compensation of $115,000 and $525,000 in the second quarters of 2008 and 2007, respectively. Interlink’s net loss in the second quarter of 2008 was $522,000, with a basic and diluted loss per share of ($0.04), compared to a net loss of $2.2 million and a loss per share of ($0.16) in the same quarter last year.

“We made progress on multiple fronts,” said John Buckett, Interlink chairman and interim CEO. “Revenues were up substantially in both our eTransactions and Specialty Components business segments, gross margins improved, and our operating loss was reduced. We are continuing to improve in terms of cash flow and profitability. With our recent cost reductions, better execution, and continued revenue growth, we should be in a position to be cash-flow positive by year end.”

Interlink reported total revenues for the first six months of 2008 of $12.5 million, up 56 percent from $8.0 million in the same period in 2007. Gross profit increased to $5.0 million from $3.1 million for the first six months of 2007. The company’s operating loss was $3.7 million, compared to $3.1 million in the first six months of 2007. These results include charges for share-based compensation of $847,000 and $1,141,000 in the first half of 2008 and 2007, respectively. Interlink’s net loss in the first half of 2008 was $2.6 million, with a basic and diluted loss per share of (0.19), down from a net loss of $4.7 million and a loss per share of ($0.34) in the same period last year.

The Company anticipates a timely Form 10-Q filing for the quarter ended June 30, 2008. A conference call to discuss its 2008 second quarter results will be held on Wednesday, August 13, 2008 at 4:30 p.m. EDT. To access the live conference call, dial 1-888-459-0938 (pass code is LINK); for international callers dial +1-210-839-8571 (pass code is LINK). For live web cast access, go to www.interlinkelectronics.com. A telephonic replay of the call will be available until 6:00 a.m. ET on September 14, 2008 at 1-888-566-0458; international callers may dial +1-402-998-0628. Webcast replay will be available at www.interlinkelectronics.com.

INTERLINK ELECTRONICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE DATA)

 

     Three Month Period
Ended June 30,		     Six Month Period
Ended June 30,		  
     2008     2007     2008     2007  

Revenues

    $ 6,713     $ 3,825     $ 12,482     $ 8,005  

Cost of revenues (includes stock-based compensation of $16 and $133 for the three months ended June 30, 2008 and 2007, respectively and $77 and $311 for the six months ended June 30, 2008 and 2007, respectively)

      3,616       2,510       7,446       4,887  
                                

Gross profit

      3,097       1,315       5,036       3,118  

Operating expenses:

         

Product development and research (includes stock-based compensation of $55 and $116 for the three months ended June 30, 2008 and 2007, respectively and $125 and $249 for the six months ended June 30, 2008 and 2007, respectively)

      1,112       710       2,338       1,506  

Selling, general and administrative (includes stock-based compensation of $44 and $276 for the three months ended June 30, 2008 and 2007, respectively and $645 and $581 for the six months ended June 30, 2008 and 2007, respectively)

      2,957       2,351       6,377       4,742  
                                

Total operating expenses

      4,069       3,061       8,715       6,248  
                                

Operating loss

      (972 )     (1,746 )     (3,679 )     (3,130 )
                                

Other income (expense):

         

Interest income

      72       21       194       42  

Interest expense

      (238 )     (45 )     (475 )     (49 )
                                

Total net interest expense

      (166 )     (24 )     (281 )     (7 )
                                

Other income

      655       24       1,645       57  

Other expense

      (39 )     (14 )     (316 )     (70 )
                                

Total net other income (expense)

      616       10       1,329       (13 )
                                

Loss from continuing operations before provision for income taxes

      (522 )     (1,760 )     (2,631 )     (3,150 )

Provision for income taxes expense

      —         —         —         52  
                                

Loss from continuing operations, net of tax

      (522 )     (1,760 )     (2,631 )     (3,202 )

Loss from discontinued operations, net of tax

      —         (419 )     —         (1,496 )
                                

Net loss

    $ (522 )   $ (2,179 )   $ (2,631 )   $ (4,698 )
                                

Loss per share from continuing operations, net of tax:

         

Basic and diluted

    $ (0.04 )   $ (0.13 )   $ (0.19 )   $ (0.23 )
                                

Loss per share on discontinued operations, net of tax:

         

Basic and diluted

    $ (— )   $ (0.03 )   $ (— )   $ (0.11 )
                                

Net loss per share:

         

Basic and diluted

    $ (0.04 )   $ (0.16 )   $ (0.19 )   $ (0.34 )
                                

Weighted average shares used for loss from continuing operations, net of tax:

         

Basic and diluted

      13,764       13,749       13,757       13,749  
                                

Weighted average shares used for loss on discontinued operations, net of tax:

         

Basic and diluted

      13,764       13,749       13,757       13,749  
                                

Weighted average shares used for net loss:

         

Basic and diluted

      13,764       13,749       13,757       13,749  
                                

INTERLINK ELECTRONICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(IN THOUSANDS, EXCEPT PAR VALUE)

 

     June 30,
2008		     December 31,
2007		  

Assets

     

Current assets:

     

Cash and cash equivalents

    $ 7,851     $ 12,659  

Restricted cash

      1,170       2,937  

Accounts receivable, less allowance for doubtful accounts of $124 and $199 at June 30, 2008 and December 31, 2007, respectively

      4,475       3,918  

Inventories, net of reserves of $646 and $394 at June 30, 2008 and December 31, 2007, respectively

      5,551       5,151  

Prepaid expenses and other current assets

      666       1,754  

Assets held for sale

      —         437  
                

Total current assets

      19,713       26,856  

Property and equipment, net

      1,026       999  

Patents and trademarks, net

      118       113  

Other assets

      451       364  
                

Total assets

    $ 21,308     $ 28,332  
                

Liabilities And Stockholders’ Equity

     

Current liabilities:

     

Accounts payable and accrued liabilities

    $ 1,737     $ 1,600  

Accrued payroll and related expenses

      1,602       5,836  

Deferred revenue

      658       646  

Liabilities related to assets held for sale

      —         86  
                

Total current liabilities

      3,997       8,168  

Convertible note, net of discounts of $1,141 and $1,415 at June 30, 2008 and December 31, 2007, respectively

      3,706       3,413  

Warrants and embedded derivatives

      591       1,974  
                

Total liabilities

      8,294       13,555  
                

Commitments and contingencies

     

Stockholders’ equity:

     

Preferred stock, $5.00 par value (100 shares authorized, none issued and outstanding)

      —         —    

Common stock, $0.00001 par value (50,000 shares authorized, 13,774 and 13,749 shares issued and outstanding at June 30, 2008 and December 31, 2007, respectively)

      59,329       58,463  

Accumulated other comprehensive loss

      (438 )     (440 )

Accumulated deficit

      (45,877 )     (43,246 )
                

Total stockholders’ equity

      13,014       14,777  
                

Total liabilities and stockholders’ equity

    $ 21,308     $ 28,332  
                

About Interlink Electronics, Inc.

Interlink Electronics, Inc. (OTC: LINK.PK), is a worldwide provider of intuitive interface components and solutions. Setting tomorrow’s standards for electronic signature, e-notarization products and interface components for consumer electronics, Interlink has established itself as one of the world’s leading innovators of intuitive interface design. With more than 41 patents around the world protecting its technologies and products, Interlink Electronics serves a world-class customer-base from its corporate headquarters in Camarillo, California and offices in Japan, Hong Kong and China. For more information, see http://www.interlinkelectronics.com.

This release contains forward-looking statements that involve a number of risks and uncertainties. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: historical losses and negative cash flow, the appointment of a new Chief Executive Officer, the success of business divestitures and acquisitions, the expense of being a public company, the ownership of the majority of our stock by a small group of investors, our success in predicting new markets and the acceptance of our new products, efficient management of our infrastructure, the pace of technological developments and industry standards evolution and their effect on our target product and market choices, the effect of outsourcing technology development, changes in the ordering patterns of our customers, a decrease in the quality and/or reliability of our products, protection of our proprietary intellectual property, competition by alternative sophisticated as well as generic products, pending litigation against Interlink, historical weaknesses in internal controls over financial accounting, the continued availability at competitive prices of raw materials for our products, disruptions in our manufacturing facilities, risks of international sales and operations including fluctuations in exchange rates, compliance with regulatory requirements applicable to our manufacturing operations, and customer concentrations. These risks are discussed in greater detail in our quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this document regarding Interlink’s financial results, industry and revenue trends, the filing of reports with the Securities and Exchange Commission and future business activities should be considered in light of these factors.

Contact:

Investor Relations Contact: Charles Best

cbest@interlinkelectronics.com 805-484-8855 ext. 151

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