On March 28, 2025, Interlink Electronics Inc (LINK, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2024. Interlink Electronics Inc, a global leader in sensor and printed electronics, operates in two principal divisions: force/touch sensors and gas/environmental sensors. The company designs and manufactures a range of sensor technologies, integrating proprietary materials, firmware, and software into its products, which serve diverse markets such as consumer electronics, automotive, industrial, and medical.
Performance Overview and Challenges
Interlink Electronics Inc reported a revenue of $3.0 million for the fourth quarter of 2024, exceeding the analyst estimate of $2.72 million. However, this represents a decline from $3.5 million in the same quarter of the previous year. The decrease was attributed to lower shipments of traditional force-sensor products, although this was partially offset by increased sales in the Gas and Environmental Sensors division and other products. The company's net loss for the quarter was $413,000, an improvement from a net loss of $448,000 in the fourth quarter of 2023.
The full-year revenue was $11.7 million, surpassing the estimated $11.42 million but down from $13.9 million in 2023. The decline in revenue and gross profit margin, which fell to 41.5% from 47.1%, was primarily due to lower sales of traditional products and an unfavorable product mix. The net loss for the year increased to $2.0 million from $383,000 in 2023, driven by reduced revenue and gross profit.
Strategic Initiatives and Financial Achievements
Interlink Electronics Inc made significant strides in expanding its market presence and product offerings. The acquisition of UK-based Conductive Transfers Limited and its affiliate, Global Print Solutions Limited, enhances the company's capabilities in the high-growth market of e-textiles and wearables. Additionally, the company received a $400,000 SBIR Phase II grant from NIST and a $150,000 SBIR Phase I grant from NASA, supporting advancements in sensor technology and air quality monitoring systems.
“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.
Financial Metrics and Analysis
Key financial metrics from the earnings report include a gross profit margin of 39.6% for the fourth quarter, down from 41.0% in the previous year. Adjusted EBITDA was reported at $(233,000) for the quarter, compared to $(1,000) in the same period of 2023. For the full year, Adjusted EBITDA was $(1.1) million, a decline from $447,000 in 2023. These metrics highlight the challenges faced by the company in maintaining profitability amidst fluctuating customer demand and product mix changes.
| Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 |
|---|---|---|---|---|
| Revenue | $3.0 million | $3.5 million | $11.7 million | $13.9 million |
| Gross Profit Margin | 39.6% | 41.0% | 41.5% | 47.1% |
| Net Loss | $413,000 | $448,000 | $2.0 million | $383,000 |
| Adjusted EBITDA | $(233,000) | $(1,000) | $(1.1 million) | $447,000 |
Conclusion
Interlink Electronics Inc's strategic acquisitions and grants have positioned the company for growth in emerging markets such as e-textiles and wearables. Despite facing challenges in traditional product sales, the company's efforts to innovate and expand its product offerings are crucial for long-term success. The financial results indicate a need for continued focus on improving profitability and adapting to changing market demands.
Explore the complete 8-K earnings release (here) from Interlink Electronics Inc for further details.
