Interlink Electronics, Inc. Announces Results for Second Quarter and Six Months Ending June 30, 2014

Interlink Electronics, Inc. (OTC: LINK), a global leader in human-machine interface and sensor technologies, today announced their unaudited results for the second quarter, which includes the three and six months ended June 30, 2014.

Second Quarter Results 2014 vs. 2013

• Revenue increased 40.3% to $2,680,000 from $1,910,000;
• Gross margin was 47.9% compared to 46.2%;
• Total operating expenses were 32.8% of revenues compared to 46.5%;
• Operating income was $405,000 compared to operating loss of ($6,000);
• Income from continuing operations, net of tax, was $414,000 or $0.14 per basic and diluted share compared to loss from continuing operations of ($10,000) or ($0.01) per basic and diluted share;⁽¹⁾ and
• Net income was $423,000 or $0.14 per basic and diluted share compared to net loss of ($1,000) or ($0.00) per basic and diluted share.⁽¹⁾

Results for Six Months Ended June 30, 2014 vs. 2013

• Revenues increased 17.6% to $4,393,000 from $3,736,000;
• Gross margin was 46.4% compared to 47.7%;
• Total operating expenses were 40.1% of revenues compared to 46.1%;
• Operating income was $277,000 compared to operating income of $60,000;
• Income from continuing operations, net of tax, was $276,000 or $0.09 per basic and diluted share, compared to income from continuing operations, net of tax, of $52,000 or $0.02 per basic and diluted share;⁽¹⁾ and
• Net income of $293,000 or $0.10 per basic and diluted share compared to net income of $69,000 or $0.02 per basic and diluted share.⁽¹⁾

Second Quarter Results 2014 vs. First Quarter Results 2014

• Revenue increased 56.5% to $2,680,000 from $1,713,000;
• Gross margin was 47.9% compared to 44.1%;
• Total operating expenses were 32.8% of revenues compared to 51.6%;
• Operating income was $405,000 compared to operating loss of ($128,000);
• Income from continuing operations, net of tax, was $414,000 or $0.14 per basic and diluted share compared to loss from continuing operations of ($138,000) or ($0.05) per basic and diluted share;⁽¹⁾ and
• Net income was $423,000 or $0.14 per basic and diluted share compared to net loss of ($130,000) or ($0.04) per basic and diluted share.⁽¹⁾ This represents a $553,000 increase.

At June 30, 2014, Interlink Electronics had no debt and its non-GAAP stockholders’ equity was $3,591,000 or $1.23 per share, which consisted of $1,127,000 or $0.39 per share in non-GAAP cash per share.⁽¹⁾

“Interlink has demonstrated dramatic year-over-year improvements in revenue growth, operating expense reduction, and net income profitability on both a quarterly and a six-month basis. Additionally we have demonstrated significant quarter-over-quarter improvements with Q2/2014 posting a revenue growth of 57% and earnings growth of $553,000 as compared to the Q1/2014 results,” stated Howard D. Goldberg, Ph.D., President and COO of Interlink Electronics. Dr. Goldberg continued, “This is directly attributable to our strategic growth plan and global expansion efforts that were launched in 2013.

“I am excited to announce that Interlink has had its most profitable quarter since 2003,” stated Steven N. Bronson, CEO and Chairman of Interlink Electronics. Mr. Bronson continued, “The financial results for the first-half of FY-2014 supports our previous guidance of year-over-year growth. This also validates our belief that the need for Interlink’s human-machine interface solutions continues to grow as the world becomes more touch-centric and more internet-connected.”

About Interlink Electronics, Inc.

Interlink Electronics is a world-leading trusted advisor and technology partner in the advancing world of human-machine interface and sensor technologies. Interlink Electronics has led the printed electronics industry in its commercialization of its patented Force-Sensing Resistor (FSR®) technology, which has enabled rugged and reliable human-machine interface ("HMI") solutions. For over 29 years, Interlink Electronics' solutions have focused on handheld user input, menu navigation, cursor control, and other intuitive interface technologies for the world's top electronics manufacturers. Interlink Electronics has a proven track record of supplying human-machine interface solutions for mission-critical applications in a wide range of markets, including, but not limited to, consumer electronics, automotive, industrial, and medical devices. Interlink Electronics serves a world-class customer-base from its corporate headquarters in Camarillo, California (greater Los Angeles area), printed-electronics factory in China, distribution and warehouse facility in Hong Kong, global R&D office in Singapore, global sales office in the United Kingdom, and sales office in Japan. For more information, please see our website at: http://www.interlinkelectronics.com.

FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements" involving a number of risks and uncertainties as defined in the Private Securities Litigation Reform Act of 1995. 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 success of business divestitures and acquisitions, 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 Electronics, historical weaknesses in internal controls over financial reporting, continued availability of raw materials for our products at competitive prices, 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. The forward-looking statements contained in this release should be considered in light of these risk factors.

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⁽¹⁾ All per-share and weighted average share amounts have been adjusted to retroactively reflect the four-for-one stock split effected on May 29, 2014.