Interlink Electronics 2001 First Quarter Results Match Previous Estimates

Apr 16, 2001, 01:00 ET from Interlink Electronics, Inc.

    CAMARILLO, Calif., April 16 /PRNewswire/ -- Interlink Electronics, Inc.
 (Nasdaq:   LINK), the leading developer of advanced interface technologies for
 business and broadband home entertainment markets, today announced its
 financial results for the first quarter of 2001.  Revenues for the three
 months totaled $7.4 million, down 4% from $7.7 million reported in the first
 quarter of 2000.  Operating income was $429,000 in first quarter 2001, as
 compared to $784,000 for the same period of 2000.  Net income, including
 income taxes and tax benefits, was $733,000, or $.07 per diluted share, as
 compared to $712,000, or $.06 per diluted share, in the first quarter of 2000.
     "Slowing economies and adverse market conditions worldwide impacted the
 performance of our OEM businesses this quarter," said E. Michael Thoben,
 chairman, CEO and president, Interlink Electronics, Inc.  "Our previous
 guidance reflected this downturn.  We are confident that, as a more positive
 economic climate returns, our leadership position in the Business
 Communications market, together with our early market penetration and strong
 product offerings within the E-transactions opportunity, will reset the stage
 for accelerating revenues and earnings growth."
     The company's financial position remains strong: maintaining a cash
 surplus of more than $10 million.  Both accounts receivable and inventory
 showed improvement from year-end and no additional debt was incurred.
 Management's proactive cost reductions in Q1/2001 reduced operating expenses
 by 4% from the previous quarter without compromising sales and marketing
 programs and efficiencies.
     "Interlink Electronics' product opportunities in emerging markets remain
 compelling," continued Mr. Thoben.  "The most immediate of these is the
 integration of ePad hand-written electronic signatures into financial,
 government, medical, and point of sale applications.  With enactment of the
 Uniform Electronic Transactions Act (UETA) and federal E-SIGN legislation now
 barely six months old, we are seeing an acceleration of ePad trials and
 deployments, as well as an industry-wide migration to the electronic
 processing of online legal documents, forms, and transactions.
     "Our branded product business in the Business Communications marketplace
 also remains brisk, receiving a significant boost this quarter with the
 introduction of a new RF wireless keyboard/handheld mouse combination.  This
 introduction is part of a 2001 marketing and sales initiative to increase
 branded product sales through greater representation and increased sell-
 through at the reseller level.  This initiative is designed to be synergistic
 with our existing OEM remote control business and to ensure overall stability
 within this business segment."
     "We continue to develop opportunities in the broadband home entertainment
 market -- the most significant of which is a contract to supply Microsoft with
 Force Sensing Resistor (FSR) technology for its new Xbox home gaming platform
 game controller.  Scheduled to begin shipping later this year, the Microsoft's
 Xbox is considered to be the most advanced home gaming system ever developed,
 and it is predicted to become one of two dominant home game platforms globally
 by the year 2002."
     Interlink Electronics, Inc. is the leading developer of advanced interface
 technologies to facilitate intuitive interaction with broadband applications
 in business and consumer environments.  Innovative products include
 interactive remote controls for business communications and broadband home
 entertainment markets, electronic signature solutions for network and
 e-commerce applications, and integrated computer pointing devices.  OEM
 partners include NEC, InFocus, SONY, Microsoft, SHARP, Toshiba, and
 Mitsubishi.  The Company maintains offices in Camarillo, California and Tokyo,
 Japan, and is available online at www.interlinkelectronics.com or in Japan at
 www.interlinkelec.co.jp.
 
                Summarized Consolidated Statements of Operations
                         (000's except per share data)
                                                        Three Months Ended
                                                            March 31,
                                                           (unaudited)
                                                        2001           2000
     Revenue                                           $7,389         $7,685
     Gross profit                                       3,272          2,914
     Product development and research                     844            619
     Sales, marketing and administration                1,999          1,511
     Total operating expenses                           2,843          2,130
     Operating income                                     429            784
     Other income                                         110             72
     Provision for income tax (benefit)                  (194)           150
                                                         $733           $712
 
     Earnings per share - basic                          $.08           $.08
     Earnings per share - diluted                        $.07           $.06
 
 
                Selected Consolidated Balance Sheet Data (000's)
 
                                                     March 31,    December 31,
                                                       2001           2000
                                                   (unaudited)
     Cash and cash equivalents                        $10,168        $10,506
     Working capital                                   23,671         23,128
     Total assets                                      30,995         31,774
     Long-term debt and
      capital lease obligations                         2,233          2,598
     Stockholders' equity                              23,285         22,433
 
     From time to time the Company may issue 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: business conditions and growth in the electronics industry
 and general economies, both domestic and international; lower than expected
 customer orders; delays in receipt of orders or cancellation of orders;
 competitive factors, including increased competition, new product offerings by
 competitors and price pressures; the availability of third party parts and
 supplies at reasonable prices; changes in product mix; significant quarterly
 performance fluctuations due to the receipt of a significant portion of
 customer orders and product shipments in the last month of each quarter; and
 product shipment interruptions due to manufacturing problems.  The forward-
 looking statements contained in this document regarding industry and revenue
 trends, new markets, new products, and future business activities should be
 considered in light of these factors.
 
                          Conference Call Information
                      Monday, April 16, 2001, 1:00 p.m. PT
                         Live call in #:  888-343-7141
                 Web cast address: www.interlinkelectronics.com
   Web cast replay available until May 16, 2001: www.interlinkelectronics.com
                Telephonic replay available until April 19, 2001
           Telephonic replay call in #: 800-633-8284, Code: 18603232
 
 

SOURCE Interlink Electronics, Inc.
    CAMARILLO, Calif., April 16 /PRNewswire/ -- Interlink Electronics, Inc.
 (Nasdaq:   LINK), the leading developer of advanced interface technologies for
 business and broadband home entertainment markets, today announced its
 financial results for the first quarter of 2001.  Revenues for the three
 months totaled $7.4 million, down 4% from $7.7 million reported in the first
 quarter of 2000.  Operating income was $429,000 in first quarter 2001, as
 compared to $784,000 for the same period of 2000.  Net income, including
 income taxes and tax benefits, was $733,000, or $.07 per diluted share, as
 compared to $712,000, or $.06 per diluted share, in the first quarter of 2000.
     "Slowing economies and adverse market conditions worldwide impacted the
 performance of our OEM businesses this quarter," said E. Michael Thoben,
 chairman, CEO and president, Interlink Electronics, Inc.  "Our previous
 guidance reflected this downturn.  We are confident that, as a more positive
 economic climate returns, our leadership position in the Business
 Communications market, together with our early market penetration and strong
 product offerings within the E-transactions opportunity, will reset the stage
 for accelerating revenues and earnings growth."
     The company's financial position remains strong: maintaining a cash
 surplus of more than $10 million.  Both accounts receivable and inventory
 showed improvement from year-end and no additional debt was incurred.
 Management's proactive cost reductions in Q1/2001 reduced operating expenses
 by 4% from the previous quarter without compromising sales and marketing
 programs and efficiencies.
     "Interlink Electronics' product opportunities in emerging markets remain
 compelling," continued Mr. Thoben.  "The most immediate of these is the
 integration of ePad hand-written electronic signatures into financial,
 government, medical, and point of sale applications.  With enactment of the
 Uniform Electronic Transactions Act (UETA) and federal E-SIGN legislation now
 barely six months old, we are seeing an acceleration of ePad trials and
 deployments, as well as an industry-wide migration to the electronic
 processing of online legal documents, forms, and transactions.
     "Our branded product business in the Business Communications marketplace
 also remains brisk, receiving a significant boost this quarter with the
 introduction of a new RF wireless keyboard/handheld mouse combination.  This
 introduction is part of a 2001 marketing and sales initiative to increase
 branded product sales through greater representation and increased sell-
 through at the reseller level.  This initiative is designed to be synergistic
 with our existing OEM remote control business and to ensure overall stability
 within this business segment."
     "We continue to develop opportunities in the broadband home entertainment
 market -- the most significant of which is a contract to supply Microsoft with
 Force Sensing Resistor (FSR) technology for its new Xbox home gaming platform
 game controller.  Scheduled to begin shipping later this year, the Microsoft's
 Xbox is considered to be the most advanced home gaming system ever developed,
 and it is predicted to become one of two dominant home game platforms globally
 by the year 2002."
     Interlink Electronics, Inc. is the leading developer of advanced interface
 technologies to facilitate intuitive interaction with broadband applications
 in business and consumer environments.  Innovative products include
 interactive remote controls for business communications and broadband home
 entertainment markets, electronic signature solutions for network and
 e-commerce applications, and integrated computer pointing devices.  OEM
 partners include NEC, InFocus, SONY, Microsoft, SHARP, Toshiba, and
 Mitsubishi.  The Company maintains offices in Camarillo, California and Tokyo,
 Japan, and is available online at www.interlinkelectronics.com or in Japan at
 www.interlinkelec.co.jp.
 
                Summarized Consolidated Statements of Operations
                         (000's except per share data)
                                                        Three Months Ended
                                                            March 31,
                                                           (unaudited)
                                                        2001           2000
     Revenue                                           $7,389         $7,685
     Gross profit                                       3,272          2,914
     Product development and research                     844            619
     Sales, marketing and administration                1,999          1,511
     Total operating expenses                           2,843          2,130
     Operating income                                     429            784
     Other income                                         110             72
     Provision for income tax (benefit)                  (194)           150
                                                         $733           $712
 
     Earnings per share - basic                          $.08           $.08
     Earnings per share - diluted                        $.07           $.06
 
 
                Selected Consolidated Balance Sheet Data (000's)
 
                                                     March 31,    December 31,
                                                       2001           2000
                                                   (unaudited)
     Cash and cash equivalents                        $10,168        $10,506
     Working capital                                   23,671         23,128
     Total assets                                      30,995         31,774
     Long-term debt and
      capital lease obligations                         2,233          2,598
     Stockholders' equity                              23,285         22,433
 
     From time to time the Company may issue 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: business conditions and growth in the electronics industry
 and general economies, both domestic and international; lower than expected
 customer orders; delays in receipt of orders or cancellation of orders;
 competitive factors, including increased competition, new product offerings by
 competitors and price pressures; the availability of third party parts and
 supplies at reasonable prices; changes in product mix; significant quarterly
 performance fluctuations due to the receipt of a significant portion of
 customer orders and product shipments in the last month of each quarter; and
 product shipment interruptions due to manufacturing problems.  The forward-
 looking statements contained in this document regarding industry and revenue
 trends, new markets, new products, and future business activities should be
 considered in light of these factors.
 
                          Conference Call Information
                      Monday, April 16, 2001, 1:00 p.m. PT
                         Live call in #:  888-343-7141
                 Web cast address: www.interlinkelectronics.com
   Web cast replay available until May 16, 2001: www.interlinkelectronics.com
                Telephonic replay available until April 19, 2001
           Telephonic replay call in #: 800-633-8284, Code: 18603232
 
 SOURCE  Interlink Electronics, Inc.