Interlink Electronics Reports 2008 Third Quarter and
Nine Months Financial Results
CAMARILLO, CA (USA), November 12, 2008 — Interlink Electronics, Inc. (OTC: LINK.PK), a worldwide provider of intuitive
interface components and solutions, today announced results for the quarter and nine-month period ended September 30, 2008.
The company reported total third quarter revenues of $7.2 million, up 55 percent from $4.7 million in the third quarter of 2007. Gross
profit increased to $3.1 million from $1.0 million in the same quarter last year. The company’s operating loss was $27,000, down
significantly from the $3.2 million operating loss in the third quarter of 2007. These results include charges for share-based
compensation of $144,000 and $797,000 in the third quarters of 2008 and 2007, respectively. Excluding share-based compensation
charges, Interlink had an operating profit of $117,000 in the 2008 third quarter. Interlink’s net income in the third quarter of 2008 was
$121,000, with basic and diluted earnings per share (EPS) of $0.01, compared to net income of $1.6 million and EPS of $0.12 in the
same quarter last year. The 2007 third quarter includes a $6.2 million gain from the sale of assets concluded in August 2007.
“We continued to experience impressive growth despite the tough economy,” said Kevin Wiley, Interlink Chief Executive Officer.“Revenues were up in both our eTransactions and Specialty Components business segments, gross margins improved our operating
loss was significantly reduced compared to both last year and the prior quarter period, and our cash position improved from June 30.
This momentum, along with the movement of substantially all of our manufacturing operations to China by the middle of next year,
should keep us on the path towards increasing growth and profitability.”
Interlink reported total revenues for the first nine months of 2008 of $19.7 million, up 56 percent from $12.7 million in the same
comparable period in 2007. Gross profit increased to $8.2 million for the first nine months of 2008 from $4.2 million for the first nine
months of 2007. The company’s operating loss was $3.7 million for the first nine months of 2008 compared to $6.3 million in the first
nine months of 2007. These results include charges for share-based compensation of $991,000 and $1,770,000 in the first nine months
of 2008 and 2007, respectively. Interlink’s net loss in the first nine months of 2008 was $2.5 million, with a basic and diluted loss per
share of (0.18), down from a net loss of $3.1 million and a loss per share of ($0.22) in the same nine month period last year. The 2007
nine-month period includes a $6.2 million gain from the sale of assets concluded in August 2007.
The company anticipates timely filing its Form 10-Q for the quarter ended September 30, 2008. A conference call to discuss its 2008
third quarter results will be held on Wednesday, November 12, 2008 at 1:00 p.m. EDT. To access the live conference call, dial 1-415-
228-5018 (pass code is LINK); for international callers dial +1 888-606-5913 (pass code is LINK). For live web cast access, go to www.interlinkelectronics.com. A telephonic replay of the call will be available until 6:00 p.m. EDT on December 12, 2008 at 1-866-
486-4647; international callers may dial +1 203-369-1637. A webcast replay will be available at www.interlinkelectronics.com.
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About Interlink Electronics, Inc.
Interlink Electronics, Inc. (OTC: LINK.PK) is a worldwide provider of intuitive interface components and solutions. Setting
tomorrow’s standards for electronic signature, e-notarization products and interface components for consumer electronics, Interlink
has established itself as one of the world’s leading innovators of intuitive interface design. With more than 41 patents around the
world protecting its technologies and products, Interlink Electronics serves a world-class customer-base from its corporate
headquarters in Camarillo, California and offices in Japan, Hong Kong and China. For more information, see
http://www.interlinkelectronics.com.
This release contains forward-looking statements 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: historical losses and negative cash
flow, the appointment of a new Chief Executive Officer, the success of business divestitures and acquisitions, the expense of being a
public company, 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, historical weaknesses in internal controls over financial accounting, the continued availability at competitive prices of raw
materials for our products, 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. These risks are discussed in greater detail under the caption “Risk Factors” in our quarterly report on Form 10-Q
filed with the U.S. Securities and Exchange Commission on November 12. 2008. The forward-looking statements contained in this
release should be considered in light of these risk factors.
Contact:
Investor Relations
Contact: Charles Best
cbest@interlinkelectronics.com
805-484-8855 ext. 151
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