MTLK Metalink, Ltd. (MM)

YAKUM, Israel, February 4 /PRNewswire-FirstCall/ -- Metalink Ltd. (NASDAQ:MTLK), a global provider and developer of high-performance wireless and wireline broadband communication silicon solutions, today announced results for the fourth quarter and full year ended December 31, 2007. Financial Results Revenues for the fourth quarter of 2007 were $1.4 million, virtually all of which derived from legacy DSL sales. This compared to $3.6 million for the fourth quarter of 2006. Net loss for the period was $8.5 million, or $(0.36) per share, compared to $3.9 million, or $(0.20) per share for the fourth quarter of 2006. Net loss for the fourth quarter of 2007 includes stock-based compensation expenses of $0.5 million. For the twelve-month period, revenues were $10.2 million compared to $14.5 million for 2006. Net loss for the year was $24.3 million, or $(1.14) per share, compared to $16.2 million, or $(0.83) per share, for 2006. Net loss for 2007 includes stock-based compensation expenses of approximately $1.5 million. Metalink's cash, cash equivalents, short and long-term investments as of December 31, 2007 were $26.7 million compared to $33.2 million as of September 30, 2007. Highlights for the fourth quarter - Design-in at a Top-Tier Retail OEM progressing - initial shipments expected in the second quarter of 2008. - Multiple Design-in opportunities at numerous retail OEMS - on the cusp of winning multiple designs, each of which represents the potential for near-term revenues. - Continued leadership in the emerging Video-over-802.11n market segment - Set-top Boxes, Media Extenders, Digital TVs and other IPTV-related equipment. - Expansion of sales and marketing capabilities - top-notch sales and marketing executives have joined Metalink's management team. Comments of Management Commenting on the quarter, Metalink's CEO, Tzvika Shukhman, said, "After several years of preparation, we are now on the verge of the breakthrough we have been anticipating for our WLANPlus 802.11n-compliant chipsets. As the market's best performing 802.11n solution - and its most suitable solution for video applications - our WLANPlus is being sought out by vendors throughout the Video-over-802.11n ecosystem, including top-tier OEMs, ODMs, operators and silicon partners worldwide. As Video-over-802.11n is becoming broadly adopted by both service providers as well as retail OEMs, we have been successful in leveraging our initial market penetration, achieving design-ins into retail wireless routers. We are excited by our success in penetrating a top-tier retail OEM and expect to win additional numerous designs soon. "As such, our business is developing in line with our plans and strategies. As we shift into sales mode, we are well-positioned to achieve the sales ramp-up expected to begin in the second half of 2008. We believe that we have the right product at the right time to make it happen." Metalink's fourth quarter 2007 conference call will be broadcast "live" in listen-only mode via its website on Monday, February 4, 2008 at 9:00 AM EDT. About Metalink Metalink Ltd. (NASDAQ:MTLK) is a leading provider of high performance wireless and wireline broadband communication silicon solutions. Metalink's WLAN and DSL technologies are designed to enable true broadband connectivity in every home, and its products revolutionize the broadband experience by facilitating the convergence of telecommunication, networking and entertainment. Metalink's WLANPlus(TM) is a high-throughput, 802.11n-draft-compliant wireless LAN technology optimized for the networked home entertainment environment. Featuring advanced MIMO technology and full support of QoS, and operating in both 2.4GHz and 5GHz bands, WLANPlus enables multi-room networking of multiple high-definition video streams. In addition, Metalink offers a broad range of symmetric DSL and VDSL products used by operators as a cost-effective network upgrade to support triple-play services. Headquartered in Yakum, Israel, the company has design centers in USA (Atlanta, GA) and Taiwan, and sales offices in USA (Atlanta, GA), South Korea, Japan, China and Taiwan. Further information is available at http://www.mtlk.com/ This press release contains "forward looking" information within the meaning of the United States securities laws that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Additional factors that could cause actual results to differ materially from these forward-looking statements are set forth from time to time in Metalink's filings with the Securities and Exchange Commission, including Metalink's Annual Report in Form F-20. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events. The Company cannot guarantee future results, events, and levels of activity, performance, or achievements. Metalink Ltd. Consolidated Balance Sheets December 31, December 31, ____________ ____________ 2 0 0 7 2 0 0 6 __________ ___________ (in thousands, except share data) ___________________________ ASSETS Current assets Cash and cash equivalents $ 7,291 $ 4,775 Short-term investments 17,233 18,317 Trade accounts receivable 677 2,025 Other receivables 2,284 422 Prepaid expenses 456 584 Inventories 1,765 3,171 ______ _______ Total current assets 29,706 29,294 ----- ----- Long-term investments 2,200 5,520 ----- ----- Severance pay fund 2,534 1,955 ----- ----- Property and equipment, net 4,182 3,517 ------ ----- _______ ________ Total assets $ 38,622 $ 40,286 ________ _______ ________ _______ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts payable $ 1,564 $ 2,280 Other payables and accrued expenses 4,979 4,058 ______ _______ Total current liabilities 6,543 6,338 ----- ----- Accrued severance pay 3,748 3,065 ----- ----- Shareholders' equity Ordinary shares of NIS 0.1 par value (Authorized - 50,000,000 shares, issued and outstanding 24,377,232 and 20,653,826 shares as of December 31, 2007 and December 31, 2006, respectively) 701 614 Additional paid-in capital 154,703 133,119 Accumulated other comprehensive income (loss) 48 (52) Accumulated deficit (117,236) (92,913) ______ _______ 38,216 40,768 ----- ----- Treasury stock, at cost; 898,500 as of December 31, 2007 and December 31, 2006 (9,885) (9,885) ------- ------- _______ _______ Total shareholders' equity 28,331 30,883 ------- ------- _______ _______ Total liabilities and shareholders' equity $ 38,622 $ 40,286 ______ _______ ______ _______ METALINK LTD. CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended Year ended December 31, December 31, _________________ ______________ 2007 2006 2007 2006 _____ ____ ____ ____ (Unaudited) _________________ ________________ (in thousands, except share and per share data) ___________________________________________ Revenues $ 1,373 $ 3,620 $ 10,166 $ 14,476 -------- -------- -------- -------- Cost of revenues: Costs and expenses 686 1,923 4,736 7,071 Royalties to the Government of Israel 42 94 297 436 _____ _____ _____ _____ Total cost of revenues 728 2,017 5,033 7,507 -------- -------- -------- ------- _____ _____ _____ _____ Gross profit 645 1,603 5,133 6,969 -------- -------- -------- ------- Operating expenses: Gross research and development 8,290 4,859 25,474 20,498 Less - Royalty bearing and other grants 810 814 2,598 2,882 _____ _____ _____ _____ Research and development, net 7,480 4,045 22,876 17,616 -------- -------- -------- -------- Selling and marketing 1,448 1,234 5,427 4,892 General and administrative 670 547 2,451 1,985 _____ _____ _____ _____ Total operating expenses 9,598 5,826 30,754 24,493 ----- ----- ------ ------ _____ _____ _____ _____ Operating loss (8,953) (4,223) (25,621) (17,524) Financial income, net 418 309 1,298 1,304 _____ _____ ______ ______ Net loss $ (8,535) $ (3,914) $(24,323)$(16,220) _____ _____ ______ ______ _____ _____ ______ ______ Loss per ordinary share: Basic $ (0.36) $ (0.20) $ (1.14) $ (0.83) _____ _____ ______ ______ _____ _____ ______ ______ Diluted $ (0.36) $ (0.20) $ (1.14) $ (0.83) _____ _____ ______ ______ _____ _____ ______ ______ Shares used in computing loss per ordinary share: Basic 23,430,738 19,711,221 21,319,262 19,625,316 __________ _________ __________ _________ __________ _________ __________ _________ Diluted 23,430,738 19,711,221 21,319,262 19,625,316 __________ _________ __________ _________ __________ _________ __________ _________ Yuval Ruhama CFO Metalink Ltd. Tel: +972-9-9605395 Fax: +972-9-9605544 Mor Abraham Marketing Communications Manager Metalink Ltd. Tel: +972-9-9605406 Fax: +972-9-9605544 DATASOURCE: Metalink Ltd CONTACT: Yuval Ruhama, CFO, Metalink Ltd., Tel: +972-9-9605395, Fax: +972-9-9605544, ; Mor Abraham, Marketing Communications Manager, Metalink Ltd., Tel: +972-9-9605406, Fax: +972-9-9605544,

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