YAKUM, Israel, September 8 /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 second quarter of 2009 and an
amendment of its short term secured loan agreement with an
institutional investor. FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER
OF 2009: Revenues for the second quarter of 2009 were $1.9 million,
the majority of which consisted of legacy DSL sales, compared to
$2.7 million for the second quarter of 2008. Net loss for the
second quarter of 2009 was $(4.4) million, or $(0.18) per share,
compared to $(6.6) million, or $(0.28) per share, for the second
quarter of 2008. Net loss for the second quarters of 2009 and 2008
includes stock-based compensation expenses of $0.2 million and $0.5
million, respectively. FOR THE FIRST 6 MONTHS OF 2009: Revenues
were $3.7 million, the majority of which consisted of legacy DSL
sales, compared to $3.3 million for the first half of 2008. Net
loss for the first six months of 2009 was $(7.9) million, or
$(0.33) per share, compared to $(16.4) million, or $(0.70) per
share, for the first six months of 2008. FINANCIAL EXPENSES:
Financial Expenses, net, in the second quarter of 2009 were $1.6
million, compared to $1 million in the first quarter of 2009. The
increase in financial expenses primarily reflects a non-cash
expense attributable to the increase in the fair value of the
warrants granted under the loan agreement to the institutional
investor, carried in fair value. CASH STATUS: Metalink's cash, cash
equivalents, and short-term investments as of June 30, 2009 were
$6.6 million. SHORT TERM LOAN: As previously announced, Metalink
has drawn down a total of $5.75 million under its short-term
secured loan agreement with an institutional investor. The Company
announced today that it has entered into an amendment to the loan
agreement, whereby the maturity date was extended from September 9,
2009 to March 9, 2010. As part of the amendment, Metalink will
immediately repay the lender $2 million out of the outstanding
$5.75 million. Metalink also agreed that the repayment amount will
be between 105% and 115% of the $3.75 million balance of the loan
amount, depending on the timing of the repayment (interest at the
annual rate of 10% will continue to accrue on the original amount
outstanding). Pursuant to the amendment, the exercise price of
1,165,000 warrants that were previously issued to the lender was
adjusted from $0.50 to $0.03 per share. Additional details
regarding the amendment to the loan agreement, including a copy of
the amendment, are included in the Company's Report on Form 6-K
that is being filed today with the Securities and Exchange
Commission (SEC). COMMENTS OF MANAGEMENT: Metalink's CEO, Tzvika
Shukhman, said, "We are pleased to have secured an extension of the
loan maturity for six months. We believe that this will allow us
sufficient time to pursue our strategic alternatives, including a
financing or a sale of the company or its business." Mr. Shukhman
continued, "We are in the process of sampling our Generation 3 WLAN
products which will allow us to further improve both our
performance edge and the cost structure of our products. We are
pleased to update that WLAN products by our world-class customers
have started to ship in volume. We believe that a successful
outcome of the strategic process would be a key factor in our
ability to increase our WLAN revenues and will have a material
effect on our business outlook." There can be no assurance that the
exploration of strategic alternatives will result in any
transaction or as to the timing, terms or deal structure if a
transaction occurs. 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 change 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 the exploration of strategic alternatives and its possible
effect on our WLAN revenues, 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: in light of our cash
status, our inability to raise additional funds or enter into other
strategic transactions on a timely basis may lead us 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 SEC, 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 June 30, December 31, ___________
____________ 2 0 0 9 2 0 0 8 ___________ ____________ (Unaudited)
___________ (in thousands except share data)
___________________________ ASSETS Current assets Cash and cash
equivalents $ 6,594 $ 5,166 Short-term investments - 677 Trade
accounts receivable 858 2,515 Other receivables 1,300 1,529 Prepaid
expenses 270 209 Deferred charges 132 242 Inventories 1,724 2,508
__________ __________ Total current assets 10,878 12,846 ----------
---------- Severance pay fund 1,259 1,195 ---------- ----------
Property and equipment, net 2,739 3,338 ---------- ----------
__________ __________ Total assets $ 14,876 $ 17,379 ==========
========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities
Trade accounts payable $ 609 $ 739 Other payables and accrued
expenses 4,260 3,257 Short-term loan 5,268 2,101 Warrants to issue
shares 948 196 __________ __________ Total current liabilities
11,085 6,293 ---------- ---------- Accrued severance pay 1,931
2,098 ---------- ---------- Shareholders' equity Ordinary shares of
NIS 0.1 par value (Authorized - 50,000,000 shares, issued and
outstanding 25,402,232 and 24,752,232 shares as of June 30, 2009
and December 31, 2008, respectively) 728 711 Additional paid-in
capital 157,099 156,500 Accumulated other comprehensive loss -
(124) Accumulated deficit (146,082) (138,214) __________ __________
11,745 18,873 ---------- ---------- Treasury stock, at cost;
898,500 as of June 30, 2009 and December 31, 2008 (9,885) (9,885)
__________ __________ Total shareholders' equity 1,860 8,988
---------- ---------- __________ __________ Total liabilities and
shareholders' equity $ 14,876 $ 17,379 ========== ==========
METALINK LTD. CONSOLIDATED STATEMENTS OF OPERATIONS Three months
ended Six months ended June 30, June 30, _____________________
____________________ 2 0 0 9 2 0 0 8 2 0 0 9 2 0 0 8 ________
________ ________ ________ (Unaudited) (Unaudited)
_____________________ ____________________ (In thousands, except
share and per share data) Revenues $ 1,883 $ 2,673 $ 3,716 $ 3,333
Cost of revenues: Costs and expenses 937 900 1,765 1,404 Royalties
to the Government of Israel 59 82 115 105 ________ ________
________ ________ Total cost of revenues 996 982 1,880 1,509
-------- -------- -------- -------- ________ ________ ________
________ Gross profit 887 1,691 1,836 1,824 -------- --------
-------- -------- Operating expenses: Gross research and
development 2,843 6,563 5,785 15,055 Less - Royalty bearing and
other grants 519 138 871 936 ________ ________ ________ ________
Research and development, net 2,324 6,425 4,914 14,119 --------
-------- -------- -------- Selling and marketing 441 1,353 798
3,110 General and administrative 967 735 1,479 1,443 ________
________ ________ ________ Total operating expenses 3,732 8,513
7,191 18,672 -------- -------- -------- -------- ________ ________
________ ________ Operating loss (2,845) (6,822) (5,355) (16,848)
Financial income (expenses), net (1,555) 177 (2,513) 418 ________
________ ________ ________ Net loss $ (4,400) $ (6,645) $ (7,868) $
(16,430) ======== ========= ======== ======== Loss per ordinary
share: Basic $ (0.18) $ (0.28) $ (0.33) $ (0.70) ======== =========
======== ======== Diluted $ (0.18) $ (0.28) $ (0.33) $ (0.70)
======== ========= ======== ======== Shares used in computing loss
per ordinary share: Basic 24,185,954 23,490,643 24,019,843
23,498,760 ========== ========== ========== ========== Diluted
24,185,954 23,490,643 24,019,843 23,498,760 ========== ==========
========== ========== Contact: Yuval Ruhama CFO Metalink Ltd.
Tel:+972-9-9605555 Fax:+972-9-9605544 DATASOURCE: Metalink Ltd
CONTACT: Contact: Yuval Ruhama, CFO, Metalink Ltd.,
Tel:+972-9-9605555, Fax:+972-9-9605544,
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