Interlink shares rise despite earnings drop
Interlink Electronics shares popped 36 percent to a new 52-week high ahead of an earnings report on Aug. 17 that showed a 15 percent dip in revenue but net income that stayed barely in the black.
The results come as the sensor manufacturer is preparing to move into a new headquarters in Irvine and make major investments in its Camarillo facility, CEO Steven Bronson said in a company news release.
“We are pleased with our results in light of the challenging environment created by COVID-19,” Bronson said. “We are continuing to make investments in our business supported by a new HQ in Irvine and a pending investment and expansion of our Camarillo, California location to include a world-class R&D and materials science lab.”
Revenue fell to $1.7 million, though margins jumped 6 percentage points to 58.6 percent. Operating expenses also increased 40 percent to $957,000, for an overall net income of just $13,000, down from $109,000 the previous second quarter.
Product mix shifted during the quarter, with a steep drop in demand from medical device customers as the COVID-19 pandemic interrupted their planned spending, the company said. Consumer products and other standard sensors, on the other hand, saw sales spikes.
The quarter included key new hires, including a new director of global sales, Bronson added.
Shares closed the day at $8.20, up 72 percent for the year, after a surge prior to the earnings release. The company ended the quarter with a little more than $6 million in cash and cash equivalents.
