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Technology Stocks : LINK Interlink Electronics PC Imput Devices -- Ignore unavailable to you. Want to Upgrade?

To: VIXandMore who wrote (59)	5/4/1999 9:53:00 PM
From: Kip518	Respond to of 97

May 04, 1999 20:00 INTERLINK ELECTRONICS files 0331 qtr 10-Q. Reports $6.5 mil tot rev and $.08 EPS. Excerpted from 10-Q filed on 05/04 by INTERLINK ELECTRONICS: INTERLINK ELECTRONICS files 0331 qtr 10-Q. Reports $6.5 mil tot rev and $.08 EPS. RESULTS OF OPERATIONS For the three-month period ended March 31, 1999, revenues grew 26% as compared to the same period of 1998. This revenue growth is a result of the Company's focus on developing and marketing the computer pointing device product line based on the Company's patented technologies, primarily in the computerized presentation projector market. Revenues from this product line grew to $6.0 million in 1999 from $4.6 million in the first quarter of 1998. The Company has established relationships with most of the major Original Equipment Manufacturers (OEM's) in the computerized presentation projector market and currently derives approximately two-thirds of its revenue from that market. Many of these OEM's reside in Japan (however the majority of the end-user customer base is in the United States) and accordingly approximately 50% of the Company's revenues come from Japanese customers. As result the Company is subject to foreign currency exchange rate fluctuations, primarily yen/dollar. As a percent of revenues, gross profit remained at 37% for the first quarter of 1999 as compared to the same period of 1998. The Company expects gross profit percentages to vary slightly from the current level depending on the mix of high volume OEM business versus low volume OEM business or non OEM business. Product development and research expenses were 7% of revenues for the first quarter of 1999, as compared to 7% for the same period in 1998 as the Company continues to develop products based on its proprietary VersaPoint and RemoteLink Technologies. Given the industries the Company participates in, management expects research and development costs, as a percent of revenues, to remain at or near the current level. For the three months ended March 31, 1999, selling, general and administrative costs (S,G&A) declined to 22% of revenues, as compared to 29% for the same period of 1998. The decrease resulted from the leveraging of fixed S,G&A costs over a higher sales base and the greater mix of OEM sales which carry a relatively lower S,G&A requirement. LIQUIDITY AND CAPITAL RESOURCES At March 31, 1999, working capital totaled $14.9 million as compared to $14.1 million at December 31, 1998. This increase is primarily a result of the Company's positive results from operations and additional bank debt.