Interlink Electronics, Inc. Expects Record Revenues But Anticipates a Loss for the Fourth Quarter.CAMARILLO, Calif--(BUSINESS WIRE)--Dec. 17, 1997--Interlink Electronics, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : LINK), announced today that, despite its expectation that fourth quarter revenues will increase over the prior quarter for the 11th consecutive quarter, it anticipates that it will record a loss for the quarter as a result of costs associated with the introduction of products based on its new "VersaPad(tm)" technology. The loss is currently forecast to be between $750,000 and $1 million and could exceed that amount. "The principal reason for the loss relates to lower than anticipated yields in the manufacture of initial production quantities of our new VersaPad products for both OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and retail markets," said E. Michael Thoben, Interlink INTERLINK - A commercial product comprising hardware and software for file transfer between IBM and VAX computers. Electronics' CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "As indicated by our record quarterly sales, Interlink Electronics' new VersaPad products have been favorably received in the market by first quality original equipment manufacturers, including Sony Corporation. Given the quality standards required by such customers and Interlink Electronics' status as an ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 manufacturer, Interlink Electronics Interlink Electronics is a technology company that specializes in user interfaces. History In 2001, Interlink joined Microsoft in designing the controller for the Xbox console. has chosen to absorb higher than anticipated startup costs associated with low production yields. The result is reflected in significantly lower gross margins in the fourth quarter than in prior quarters." "We believe that yields are improving to acceptable levels and that existing backlog can be satisfied without substandard substandard, adj below an acceptable level of performance. yields," Thoben said. "While we expect gross margins to remain somewhat below historic levels as Interlink Electronics' customer mix shifts in favor of OEM customers, we believe that 1998 results will not be materially affected by the yield issues that have affected the fourth quarter." "Interlink Electronics remains confident that its VersaPad technology represents a significant competitive advantage and that Interlink Electronics' products incorporating that technology will achieve acceptable gross margins while establishing Interlink Electronics as a leader in the touchpad A stationary pointing device that provides a small, flat surface that you slide your finger over using the same movements as you would a mouse. You can tap on the pad's surface as an alternate to pressing one of the touchpad keys. See mouse, trackball and pointing stick. market. This is a competitive market in which the successful competitors must offer state-of-the-art technology at competitive prices and the highest levels of production quality. Rather than disappoint the customers it has worked hard to win, Interlink Electronics has chosen to deliver quality products employing new technologies and manufacturing processes despite the cost of doing so in the initial production phase," Thoben said. "We are confident that this decision will pay off in productive long-term relationships with the world's leading OEM's." About Interlink Electronics, Inc. Interlink Electronics, Inc. is an industry leader in the design and manufacture of computer pointing device An input device used to move the pointer (cursor) on screen. The major pointing device is the mouse for the desktop computer and the touchpad for the laptop, although many road warriors bring along a mouse. technologies and products. The company's products include wireless handheld remote controls with "mouse" capability, wireless keyboards, touchpads, pointing sticks, and desktop PC pointing devices. The company maintains offices in Camarillo, California Camarillo is a city in Ventura County, California, United States. The population was 57,077 at the 2000 census. A January 1, 2006 California Department of Finance estimate lists the population at 64,034. The Ventura Freeway (U.S. Route 101) is the city's primary thoroughfare. and Tokyo, Japan. Its technologies are protected by more than 65 patents and have received national and international awards for engineering innovations. -0- From time to time the Company may issue forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 pressure; 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; lower than expected manufacturing yields and product shipment interruptions due to manufacturing problems. The forward-looking statements contained in this document regarding forecasted quarterly shipments and revenues, projected gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. , manufacturing yield improvements, product mix, future market acceptance of the Company's technology, and future business activities should be considered in light of these factors. CONTACTS: Interlink Electronics, Inc. Paul D. Meyer/E. Michael Thoben, 805/484-8855 FAX: 805/484-8989 www.interlinkelec.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion