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LINK Nasdaq· Interlink Electronics Inc.
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LINK Nasdaq· Interlink Electronics Inc.
Earnings report Q3 2023

Interlink Electronics Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Interlink Electronics reported a significant increase in revenue for the latest quarter. Net revenue for the quarter was $3.08 million, compared to $1.85 million in the same quarter last year. This represents a growth of 66.8%. For the nine months ended September 30, 2023, net revenue was $10.40 million, compared to $5.88 million in the same period last year, reflecting a growth of 77.6%.

Strengths

The strong revenue growth can be attributed to several factors. Firstly, the company's acquisitions of SPEC/KWJ and Calman contributed to the increase in revenue. These acquisitions expanded Interlink Electronics' product offerings and customer base, resulting in higher sales. Additionally, the company's focus on research and development has allowed them to develop innovative products that have gained traction in the market. Management comments indicate that they are pleased with the revenue growth and believe it reflects the success of their strategic initiatives.

Challenges

Despite the strong revenue growth, Interlink Electronics faced challenges in managing their costs. The cost of revenue for the nine months ended September 30, 2023, was $5.30 million, compared to $2.81 million in the same period last year, representing an increase of 88.6%. This increase in costs was primarily due to higher materials and components costs on certain orders and unfavorable changes in product and customer mix. The company will need to address these cost challenges to maintain profitability.

Noteworthy

It is worth noting that Interlink Electronics reported a net loss of $125,000 for the latest quarter, compared to a net income of $6,000 in the same quarter last year. This loss can be attributed to higher operating expenses, particularly in engineering, research, and development, as well as increased income tax expense. However, it is important to consider that the net loss applicable to common stockholders was $225,000, indicating that the loss was primarily borne by the common stockholders.

Summary

Interlink Electronics delivered strong revenue growth in the latest quarter, driven by the company's acquisitions and successful research and development efforts. However, the company faced challenges in managing costs, resulting in a net loss for the quarter. Despite this, management remains optimistic about the company's performance and believes that their strategic initiatives will continue to drive growth in the future. Interlink Electronics will need to address cost challenges to improve profitability and ensure sustainable growth.

Source documents

Form 10-Q  filed on Nov 09, 2023
89 pages scanned

Reference data

Company financials Q3 revenue 3.1M
Analyst estimates Q3 EPS missed by -25.00%
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