Interlink Electronics Reports Fourth Quarter 2001 Financial Results.Business Editors CAMARILLO Camarillo (kă'mərē`yō), city (1990 pop. 52,303), Ventura co., S Calif.; inc. 1964. It is the center of a fertile farm area where citrus fruits and flowers are grown. , Calif.--(BUSINESS WIRE)--Feb. 14, 2002 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. , Inc. (Nasdaq:LINK), a world leader in the development of intuitive interface technologies and solutions for business and home applications, today announced financial results for the quarter and the year ended December 31, 2001. Worldwide revenues for the fourth quarter totaled $5.3 million, compared to the $6 million posted in third quarter of 2001. For the year, revenues totaled $25.3 million compared to the $33.9 million recorded in 2000. Operations delivered a $491,000 loss for the quarter, as compared to the $593,000 operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in third quarter of 2001. For the year, the operating loss was $635,000 (excluding $2.4 million in one-time operating charges). This compares with an operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $3.6 million in 2000. The net loss reached $467,000 for the quarter and $2 million for the year. The loss per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share was $0.05 for the fourth quarter and $0.21 for the 2001 year. "As anticipated, the performance of our Business Communications segment remained sluggish in the fourth quarter of 2001," said E. Michael Thoben, chairman, 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. and president of Interlink Electronics. "During the current worldwide economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , we retained all of our major 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 customers. Their orders, however, have been more conservative reflecting current market conditions. We have used this opportunity to deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. and broaden our relationships with key customers. Our recently announced enhanced partnership with InFocus Corporation, the world's largest maker of presentation projectors, is a result of the implementation of this strategy. "In general, we are encouraged by some of the positive indices we are seeing in the OEM sector. Specifically, we are now achieving design wins indicating to us a much stronger second half of the year," Mr. Thoben continued. "The Home Entertainment market in the fourth quarter, while slow for companies focused on broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). opportunities, continued to be a bright spot for Interlink Electronics. We currently supply Microsoft with an integral patented component in the Xbox game controller. The Xbox has been hailed by the home entertainment industry as today's most advanced gaming platform. We are pleased to be contributing to its success and anticipate sales to remain strong as this product continues to roll out worldwide. "While revenues from ePad product sales fell short of expectations in 2001, the fourth quarter ePad revenues were strong and there is clear evidence of momentum building in the market. Industry leaders such as Charles Schwab Charles Schwab can refer to:
Companies:
"Operations finished the last quarter of the year using less than $500,000 in cash. Our balance sheet remains strong with $9.3 million in the bank and several unused lines of credit. We continued to invest in our key strategic business segments while at the same time streamlining our operations in the US and Japan to reduce costs. We also established a manufacturing logistics facility in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Interlink Electronics Asia Pacific (IEAP), to guarantee cost competitive `just in time' delivery to our customers. It is our belief these steps will begin to produce a positive bottom-line trend by the second half of 2002," concluded Mr. Thoben.
Summarized Consolidated Statements of Operations
(000s except per share data)
Three Months Twelve Months
Ended December 31, Ended December 31,
(unaudited)
2001 2000 2001 2000
Revenue $ 5,301 $ 9,303 $25,265 $33,870
Gross profit(1) 2,221 4,115 8,811 14,417
Operating expenses(2) 2,712 3,027 11,796 10,834
Operating income (loss) (491) 1,088 (2,985) 3,583
Cost of cancelled equity
offering - - - (638)
Other income (loss) 24 (81) 207 20
Provision for income tax
benefit - 524 764 143
Net income (loss) $ (467) $ 1,531 $(2,014) $ 3,108
Earnings (loss) per
share -- basic $ (0.05) $ 0.17 $ (0.21) $ 0.35
Earnings (loss) per
share -- diluted $ (0.05) $ 0.14 $ (0.21) $ 0.28
Weighted average
shares -- basic 9,759 9,179 9,645 8,892
Weighted average
shares -- diluted 9,759 10,986 9,645 11,130
(1) Includes $2 million excess inventory reserve adjustment in second
quarter, 2001.
(2) Includes $50,000 restructuring charge in 2nd quarter 2001 and
$300,000 adjustment to bad debt reserves in third quarter 2001.
Selected Consolidated Balance Sheet Data (000s)
December 31, December 31,
2001 2000
Cash and short term investments $ 9,325 $ 10,506
Working capital 20,634 23,128
Total assets 27,479 31,774
Long-term debt and
capital lease obligations 1,855 2,598
Stockholders' equity 21,143 22,433
About Interlink Electronics Interlink Electronics, Inc., (Nasdaq:LINK), is the world's leading developer of intuitive interface technologies and solutions for business and home applications. Innovative products include interactive remote controls for business communications and broadband home entertainment markets, electronic signature solutions for network and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the applications, and integrated computer pointing devices 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. . Interlink's Home Entertainment Business Unit develops and markets IntuiTouch broadband interface solutions to enable interactive TV services and a host of additional home electronics applications. Industry partners include Concero, PowerTV, Mediatti, Ncube, SNAP2, Tivella, Allwell, Vesta Broadband, and Integra5. The company's E-Transactions business group provides ePad electronic signature solutions for commercial, Internet and retail electronic signature applications. Industry partners include Bluepoint blue·point also blue point n. A small oyster (Crassotrea virginica) found chiefly in coastal waters of the eastern United States and usually eaten raw. Solutions, Cardiff, Communications Intelligence Noun 1. communications intelligence - technical and intelligence information derived from foreign communications by other than the intended recipients COMINT Corporation (CIC CIC circulating immune complexes. CIC Circulating immune complexes. See Immune complexes. ), RichSolutions Inc., Silanis Technologies, and Valyd Inc. Finally, Interlink's Business Communications group designs interface solutions for a wide variety of business and home products, including those produced by Microsoft, Compaq, Sony, SANYO, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , Sharp, Toshiba, Pioneer, Mitsubishi and InFocus. Interlink Electronics, Inc. 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. ; Tokyo, Japan; and Hong Kong and is available online at www.interlinkelectronics.com, or in Japan at www.interlinkelec.co.jp. 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 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 revenue and customer order trends, market trends, new product introductions, future successes of new products, success of cost improvement programs and future business activities should be considered in light of these factors.
Live Conference Call Information
Thursday, February 14, 2002, 1:30 p.m. PT
Live Call Domestic Call In #: 888-566-5777
Live Call International Call In #: 312-470-0008
Live Call Verbal Pass Code: Interlink
Live Audio Web Cast: www.interlinkelectronics.com
Telephonic Replay available until February 21, 2002
Domestic Replay Call In #: 800-879-9147
International Replay #: 402-220-5352
Replay Web cast: www.interlinkelectronics.com
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