MTLK Metalink, Ltd. (MM)

Quarterly Net Loss Reduced to $3M YAKUM, Israel, November 17 /PRNewswire-FirstCall/ -- Metalink Ltd. (NASDAQ:MTLK), a global provider and developer of high-performance broadband communication silicon solutions, today announced its unaudited financial results for the third quarter ended September 30, 2008. Financial Results Results for the third quarter: Revenues for the third quarter of 2008 were $811,000 compared with $3.9 million for the third quarter of 2007. Net loss for the period was $(3.0) million, or $(0.13) per share, compared to $(5.2) million, or $(0.24) per share, for the third quarter of 2007. Net loss for the third quarter of 2008 includes stock-based compensation expenses of $0.7 million. Results for the nine months: For the first nine months of 2008, revenues were $4.1 million, compared to $8.8 million for the first nine months of 2007. Net loss for the first nine months of 2008 was $(19.5) million, or $(0.83) per share, compared to a net loss of $(15.8) million, or $(0.77) per share, for the first nine months of 2007. Cash status: Metalink's net cash, cash equivalents, short and long-term investments as of September 30, 2008 were $7.5 million. During the third quarter, the Company received a $3.5 million short-term secured loan from an institutional investor. According to the loan agreement, the Company may request an additional loan of up to $4.5 million. Full details regarding the loan terms can be referenced in the Company's press release dated September 9, 2008, and in the Company's filings with the SEC. Comments of Management Commenting on the results, Mr. Tzvi Shukhman, Metalink's CEO, said, "We are pleased with our success at implementing our restructuring plan, an initiative that has enabled us to narrow our operating expenses dramatically. We have done so while focusing the Company on Carrier Class 802.11n markets, the industry segment which has the strongest need for our differentiating best-of-breed performance. This focus has generated successful trials and pilot deployments of our solutions with leading service operators, as well as design wins with a number of world class vendors of STBs (Set Top Boxes), RGs (Residential Gateways) and routers. We believe these developments are paving the way toward significant shipments in the latter part of 2009. In parallel, we continue to make progress in the development of our Generation 3 products in line with our plan to further expand our technology leadership. "We are increasingly optimistic that the combination of our lean operations, best-of-breed technology and excellent team will allow us to maximize shareholders' value as we assess our strategic options," concluded Mr. Shukhman. About Metalink Metalink Ltd. (NASDAQ:MTLK) is a provider of high performance 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. Further information is available at http://www.mtlk.com/ Safe Harbor Statement This press release contains "forward looking statements" within the meaning of the United States securities laws. Words such as "aim," "expect," "estimate," "project," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believe," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. For example, when we discuss our expectation regarding strategic options, we are using a forward looking statement. Because such statements deal with future events, they are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our need to raise additional funds in order for us to implement our current business plan, including our liquidity requirements, which funds may not be available to us; our inability to satisfy Nasdaq's requirements for continued listing; any unforeseen developmental or technological difficulties with regard to our products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; and the impact on revenues of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism. 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. Except as required by applicable law, 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 September 30, December 31, ----------------- ---------------- 2008 2007 ----------------- ---------------- (Unaudited) ----------------- (in thousands, except share data) ---------------------------------- ASSETS Current assets Cash and cash equivalents $ 4,424 $ 7,291 Short-term investments 2,541 17,233 Trade accounts receivable 645 677 Other receivables 2,048 2,284 Prepaid expenses 306 456 Deferred charges 300 - Inventories 2,982 1,765 ---------- ---------- Total current assets 13,246 29,706 ---------- ---------- Long-term investments 738 2,200 ---------- ---------- Severance pay fund 1,615 2,534 ---------- ---------- Property and equipment, net 4,018 4,182 ---------- ---------- ---------- ---------- $ 19,617 $ 38,622 ---------- ---------- ---------- ---------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term bank credit $ 173 $ - Trade accounts payable 645 1,564 Other payables and accrued expenses 3,061 4,979 Short-term loan 1,756 - Warrants to issue shares 1,046 - ---------- ---------- Total current liabilities 6,681 6,543 ---------- ---------- Accrued severance pay 2,549 3,748 ---------- ---------- Shareholders' equity Ordinary shares of NIS 0.1 par value (Authorized - 50,000,000 shares, issued and outstanding 24,389,232 and 24,377,232 shares as of September 30, 2008 and December 31, 2007, respectively) 701 701 Additional paid-in capital 156,349 154,703 Accumulated other comprehensive income (loss) (76) 48 Accumulated deficit (136,702) (117,236) ---------- ---------- 20,272 38,216 ---------- ---------- Treasury stock, at cost; 898,500 as of September 30, 2008 and December 31, 2007 (9,885) (9,885) ---------- ---------- Total shareholders' equity 10,387 28,331 ---------- ---------- Total liabilities and shareholders' equity $ 19,617 $ 38,622 ---------- ---------- ---------- ---------- METALINK LTD. CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended Nine months ended September 30, September 30, --------------------- --------------------- 2008 2007 2008 2007 -------- -------- -------- -------- (Unaudited) (Unaudited) --------------------- --------------------- (in thousands, except share and per share data) Revenues $ 811 $ 3,907 $ 4,144 $ 8,793 Cost of revenues: Costs and expenses 304 1,644 1,708 4,050 Royalties to the Government of Israel 27 115 132 255 ------ ------ ------ ------ Total cost of revenues 331 1,759 1,840 4,305 ------ ------ ------ ------ ------ ------ ------ ------ Gross profit 480 2,148 2,304 4,488 ------ ------ ------ ------ Operating expenses: Gross research and development 4,329 6,461 19,384 17,184 Less - Royalty bearing and other grants 1,591 698 2,527 1,788 ------ ------ ------ ------ Research and development, net 2,738 5,763 16,857 15,396 ------ ------ ------ ------ Selling and marketing 976 1,272 4,086 3,979 General and administrative 615 637 2,058 1,781 ------ ------ ------ ------ Total operating expenses 4,329 7,672 23,001 21,156 ------ ------ ------ ------ ------ ------ ------ ------ Operating loss (3,849) (5,524) (20,697) (16,668) Financial income, net 813 311 1,231 880 ------ ------ ------ ------ Net loss $ (3,036) $ (5,213) $ (19,466) $ (15,788) ------ ------ ------ ------ ------ ------ ------ ------ Loss per ordinary share: Basic $ (0.13) $ (0.24) $ (0.83) $ (0.77) ------ ------ ------ ------ ------ ------ ------ ------ Diluted $ (0.13) $ (0.24) $ (0.83) $ (0.77) ------ ------ ------ ------ ------ ------ ------ ------ Shares used in computing loss per ordinary share: Basic 23,490,732 22,118,592 23,489,497 20,617,413 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Diluted 23,490,732 22,118,592 23,489,497 20,617,413 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Contact: Yuval Ruhama CFO Metalink Ltd. Tel: 972-9-9605395 Fax: 972-9-9605544 DATASOURCE: Metalink Ltd CONTACT: Contact: Yuval Ruhama, CFO, Metalink Ltd., Tel: 972-9-9605395, Fax: 972-9-9605544,

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