MTLK Metalink, Ltd. (MM)

YAKUM, Israel, February 9 /PRNewswire-FirstCall/ -- Metalink Ltd. (NASDAQ:MTLK), a global provider and developer of high-performance broadband communication silicon solutions, today announced financial results for the fourth quarter and full year ended December 31, 2008. Financial Results Financial Highlights for the Fourth Quarter of 2008: Revenues for the fourth quarter of 2008 were $3.0 million, compared to $1.4 million for the fourth quarter of 2007. Net loss for the period was $1.5 million, or $(0.06) per share, compared to $8.5 million, or $(0.36) per share for the fourth quarter of 2007. Net loss for the fourth quarter of 2008 includes stock-based compensation expenses of $0.13 million. Financial Highlights for the Year Ended December 31, 2008: For the twelve-month period, revenues were $7.2 million compared to $10.2 million for 2007. Net loss for the year was $21.0 million, or $(0.89) per share, compared to $24.3 million, or $(1.14) per share, for 2007. Net loss for 2008 includes stock-based compensation expenses of approximately $1.8 million. Cash Status: Metalink's cash, cash equivalents, and short-term investments as of December 31, 2008 were $5.8 million. As previously announced, in January 2009, Metalink received $2.25 million in a short-term secured loan from an institutional investor, which, together with the $3.5 million short term secured loan received in the third quarter of 2008, brings the current balance of the loans received to $5.75 million. According to the loan agreement, Metalink may request an additional loan from the institutional investor of up to $2.25 million, subject to certain conditions. Metalink also reported today that it continues its efforts to raise additional funds and to pursue alternative financing and strategic options. In light of its cash status, if the Company does not succeed in such efforts on a timely basis, it expects that it will be forced to scale down its operations significantly, and may even be required to cease its operations. Comments of Management: Commenting on the financial results, Metalink's CEO, Tzvika Shukhman, said, "During 2008, we implemented a restructuring plan that allowed us to reduce our operating expenses significantly while maintaining our leadership position in our focus markets. Our products are currently being designed into major carrier-class 802.11n residential gateways and video bridges aiming major deployments worldwide. Our customers have started to ship products for pilot deployments and we are cautiously optimistic that these initial deployments will ramp up during the later part of 2009. Our entire team is committed to turn our best-of-breed technology and market traction into shareholder value." About Metalink Metalink Ltd. (NASDAQ:MTLK) is a 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. 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 timely available to us which may lead to insolvency; our inability to regain compliance with 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 December 31, December 31, 2 0 0 8 2 0 0 7 (in thousands, except share data) ASSETS Current assets Cash and cash equivalents $ 5,166 $ 7,291 Short-term investments 677 17,233 Trade accounts receivable 2,515 677 Other receivables 1,529 2,284 Prepaid expenses 209 456 Deferred charges 242 - Inventories 2,508 1,765 ______ _______ Total current assets 12,846 29,706 ------ ------- Long-term investments - 2,200 ------ ------- Severance pay fund 1,195 2,534 ------ ------- Property and equipment, net 3,338 4,182 ------ ------- Total assets $ 17,379 $ 38,622 ______ ______ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts payable $ 739 $ 1,564 Other payables and accrued expenses 3,257 4,979 Short-term loan 2,101 - Warrants to issue shares 196 - Total current liabilities 6,293 6,543 ----- ------ Accrued severance pay 2,098 3,748 ----- ------ Shareholders' equity Ordinary shares of NIS 0.1 par value (Authorized - 50,000,000 shares, issued and outstanding 24,752,232 and 24,377,232 shares as of December 31, 2008 and December 31, 2007, respectively) 711 701 Additional paid-in capital 156,500 154,703 Accumulated other comprehensive income (loss) (124) 48 Accumulated deficit (138,214) (117,236) 18,873 38,216 ------- -------- Treasury stock, at cost; 898,500 as of December 31, 2008 and December 31, 2007 (9,885) (9,885) ------- -------- Total shareholders' equity 8,988 28,331 ------- -------- Total liabilities and shareholders' equity $ 17,379 $ 38,622 ======= ======== Metalink Ltd. Consolidated Statements of Operations Three months ended Year ended December 31, December 31, 2008 2007 2008 2007 (in thousands, except share and per share data) Revenues $ 3,018 $ 1,373 $ 7,162 $ 10,166 ------- ------- ------- -------- Cost of revenues: Costs and expenses 1,256 686 2,964 4,736 Royalties to the Government of Israel 86 42 218 297 _______ _______ _______ ________ Total cost of revenues 1,342 728 3,182 5,033 ------- ------- ------- -------- Gross profit 1,676 645 3,980 5,133 ------- ------- ------- -------- Operating expenses: Gross research and development 3,132 8,290 22,516 25,474 Less - Royalty bearing and other grants 541 810 3,068 2,598 _______ _______ _______ ________ Research and development, net 2,591 7,480 19,448 22,876 ------- ------- ------- -------- Selling and marketing 416 1,448 4,502 5,427 General and administrative 589 670 2,647 2,451 Total operating expenses 3,596 9,598 26,597 30,754 ------- ------- ------- -------- Operating loss (1,920) (8,953) (22,617) (25,621) Financial income, net 408 418 1,639 1,298 _______ _______ _______ ________ Net loss $ (1,512) $ (8,535) $ (20,978) $ (24,323) ======= ======= ======= ======== Loss per ordinary share: Basic $ (0.06) $ (0.36) $ (0.89) $ (1.14) ======= ======= ======= ======== Diluted $ (0.06) $ (0.36) $ (0.89) $ (1.14) ======= ======= ======= ======== Shares used in computing loss per ordinary share: Basic 23,807,288 23,430,738 23,569,711 21,319,262 ========== ========== ========== ========== Diluted 23,807,288 23,430,738 23,569,711 21,319,262 ========== ========== ========== ========== Yuval Ruhama CFO Metalink Ltd. Tel: +972-9-9605395 Fax: +972-9-9605544 DATASOURCE: Metalink Ltd CONTACT: Yuval Ruhama, CFO Metalink Ltd., Tel: +972-9-9605395, Fax: +972-9-9605544,

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