MTLK Metalink, Ltd. (MM)

Recently Received Volume Production Purchase Order for Top-Tier Global OEM of Wireless Routers YAKUM, Israel, May 20 /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 first quarter ended March 31, 2008. In parallel, the Company today announced that it has recently received a purchase order from an ODM in Taiwan that will start shipping next month. This ODM will be shipping Metalink-enabled products to a top-tier global OEM of Wi-Fi routers in the U.S. Financial Results Revenues for the first quarter of 2008 were $0.7 million, which consisted entirely of legacy DSL sales. This compared to sales of $2.3 million for the first quarter of 2007. Net loss for the period was $(9.8) million, or $(0.42) per share, compared to $(4.9) million, or $(0.25) per share for the first quarter of 2007. Net loss for the first quarter of 2008 includes stock-based compensation expenses of $0.5 million. Metalink's cash, cash equivalents, short and long-term investments as of March 31, 2008 were $19.1 million compared to $26.7 million as of December 31, 2007. Comments of Management Metalink's CEO, Tzvika Shukhman, commented, "We are very excited by the order we have recently received for a top-tier global OEM of wireless routers. This order is of particular importance as it validates the superiority of our 802.11n-compliant product vs. the competition, and is a solid indication of our readiness to ship volume quantities. We are optimistic that our additional design-ins at this top-tier OEM, as well as at other leading OEMs, will soon materialize into revenues. " Metalink's first quarter 2008 conference call will be broadcast "live" in listen-only mode via its website on Tuesday, May 20, 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 March 31, December 31, ---------------- -------------- 2008 2007 ---------------- -------------- (Unaudited) ---------------- (in thousands except share data) --------------------------------- ASSETS Current assets Cash and cash equivalents $ 3,967 $ 7,291 Short-term investments 14,357 17,233 Trade accounts receivable 263 677 Other receivables 1,209 2,284 Prepaid expenses 518 456 Inventories 2,250 1,765 ---------------- -------------- Total current assets 22,564 29,706 ---------------- -------------- Long-term investments 766 2,200 ---------------- -------------- Severance pay fund 2,758 2,534 ---------------- -------------- Property and equipment, net 4,542 4,182 ---------------- -------------- Total assets $ 30,630 $ 38,622 ---------------- -------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts payable $ 2,522 $ 1,564 Other payables and accrued expenses 5,094 4,979 ---------------- -------------- Total current liabilities 7,616 6,543 ---------------- -------------- Accrued severance pay 4,032 3,748 ---------------- -------------- Shareholders' equity Ordinary shares of NIS 0.1 par value (Authorized - 50,000,000 shares, issued and outstanding - 24,388,232 and 24,377,232 shares as of March 31, 2008 and December 31, 2007, respectively) 701 701 Additional paid-in capital 155,176 154,703 Accumulated other comprehensive loss 11 48 Accumulated deficit (127,021) (117,236) ---------------- -------------- 28,867 38,216 ---------------- -------------- Treasury stock, at cost; 898,500 as of March 31, 2008 and December 31, 2007 (9,885) (9,885) ---------------- -------------- Total shareholders' equity 18,982 28,331 ---------------- -------------- Total liabilities and shareholders' equity $ 30,630 $ 38,622 ---------------- -------------- METALINK LTD. CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended March 31, ----------------------------------- 2008 2007 --------------- ------------------ (Unaudited) (Unaudited) --------------- ------------------ (in thousands, except share and per share data) ----------------------------------- Revenues $ 660 $ 2,346 ---------------- -------------- Cost of revenues: Costs and expenses 504 1,094 Royalties to the Government of Israel 23 72 ---------------- -------------- Total cost of revenues 527 1,166 ---------------- -------------- Gross profit 133 1,180 Operating expenses: Gross research and development 8,492 5,180 Less - Royalty bearing and other grants 798 584 ---------------- -------------- Research and development, net 7,694 4,596 ---------------- -------------- Selling and marketing 1,757 1,316 General and administrative 708 531 ---------------- -------------- Total operating expenses 10,159 6,443 ---------------- -------------- Operating loss (10,026) (5,263) Financial income, net 241 314 ---------------- -------------- Net loss $ (9,785) $ (4,949) ---------------- -------------- Loss per ordinary share: Basic $ (0.42) $ (0.25) ---------------- -------------- Diluted $ (0.42) $ (0.25) ---------------- -------------- Shares used in computing loss per ordinary share: Basic 23,486,726 19,810,888 ---------------- -------------- Diluted 23,486,726 19,810,888 ---------------- -------------- Contact: Yuval Ruhama Mor Abraham CFO Marketing Communications Manager Metalink Ltd. Metalink Ltd. Tel: +972-9-9605395 Tel: +972-9-9605406 Fax: +972-9-9605544 Fax: +972-9-9605544 DATASOURCE: Metalink Ltd CONTACT: 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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