YAKUM, Israel, November 12 /PRNewswire-FirstCall/ -- Metalink Ltd.
(NASDAQ:MTLK), today announced its unaudited financial results for
the third quarter ended September 30, 2009. FINANCIAL HIGHLIGHTS
FOR THE THIRD QUARTER OF 2009: Revenues for the third quarter of
2009 were $0.5 million, comprising solely of WLAN sales, compared
with revenues of $0.8 million for the comparable period in 2008,
the majority of which were legacy DSL sales. Net loss for the third
quarter of 2009 was $(4.0) million, or $(0.16) per share, compared
to $(3.0) million, or $(0.13) per share, for the third quarter of
2008. Net loss for the third quarters of 2009 and 2008 includes
stock-based compensation expenses of $0.1 million and $0.7 million,
respectively. FINANCIAL EXPENSES: Financial Expenses, net, in the
third quarter of 2009 were $1.2 million, compared to $1.6 million
in the second quarter of 2009. The decrease in financial expenses
is primarily attributable to a decrease in the non-cash expense
attributable to the fair value of the warrants granted under a
short term loan (see below), carried at fair value. Said decrease
was offset mainly by an increase in the face value of the loan, due
to a recent amendment thereto. FOR THE FIRST 9 MONTHS OF 2009:
Revenues for the first nine months of 2009 were $4.2 million,
compared to $4.1 million for the comparable period in 2008. Net
loss for the first nine months of 2009 was $(11.8) million, or
$(0.48) per share, compared to a net loss of $(19.5) million, or
$(0.83) per share, for the comparable period in 2008. CASH STATUS:
Metalink's net cash and cash equivalents as of September 30, 2009
were $3.8 million. SHORT TERM LOAN: During the third quarter, the
Company's short-term secured loan agreement from an institutional
investor was amended to extend the maturity date of the loan by six
months to March 9, 2010. In accordance with the revised terms,
Metalink repaid the lender $2 million of the outstanding $5.75
million due. 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 was filed on September 8, 2009
with the Securities and Exchange Commission (SEC). ABOUT METALINK
Metalink Ltd. (NASDAQ:MTLK) is a fabless semiconductor Company
engaged in the research, development and sale of high-throughput
wireless local area network (WLAN) chipsets, and in the sale of
high performance broadband access chip sets or digital subscriber
line (DSL) used by telecommunications and networking equipment
manufacturers. 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. 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 September December _________ _________
30, 2009 31, 2008 _________ _________ (Unaudited) ___________ (In
thousands) ____________________ ASSETS Current assets Cash and cash
equivalents $ 3,767 $ 5,166 Short-term investments - 677 Trade
accounts receivable 273 2,515 Other receivables 629 1,529 Prepaid
expenses 180 209 Deferred charges - 242 Inventories 1,345 2,508
_________ _________ Total current assets 6,194 12,846 ---------
--------- Severance pay fund 1,269 1,195 --------- ---------
Property and equipment, net 2,381 3,338 --------- ---------
_________ _________ Total assets $ 9,844 $ 17,379 =========
========= LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) Current
liabilities Trade accounts payable $ 545 $ 739 Other payables and
accrued expenses 4,235 3,257 Short term loan 4,334 2,101 Warrants
to issue shares 399 196 _________ _________ Total current
liabilities 9,513 6,293 --------- --------- Accrued severance pay
1,884 2,098 --------- --------- Shareholders' equity (deficiency)
Ordinary shares of NIS 0.1 par value (Authorized - 50,000,000
shares, issued and outstanding 26,637,232 and 24,752,232 shares as
of September 30, 2009 and December 31, 2008, respectively) 759 711
Additional paid-in capital 157,620 156,500 Accumulated other
comprehensive loss - (124) Accumulated deficit (150,047) (138,214)
_________ _________ 8,332 18,873 --------- --------- Treasury
stock, at cost; 898,500 as of September 30, 2009 and December 31,
2008 (9,885) (9,885) _________ _________ Total shareholders' equity
(deficiency) (1,553) 8,988 --------- --------- _________ _________
Total liabilities and shareholders' equity (deficiency) $ 9,844 $
17,379 ========= ========= METALINK LTD. CONSOLIDATED STATEMENTS OF
OPERATIONS Three months ended Nine months ended September 30,
September 30, ____________________ __________________ 2009 2008
2009 2008 _________ _________ _________ _______ (Unaudited)
(Unaudited) ____________________ __________________ (In thousands,
except share and per share data) Revenues $ 529 $ 811 $ 4,245 $
4,144 Cost of revenues: Costs and expenses 606 304 2,371 1,708
Royalties to the 19 27 134 132 __________ __________ __________
__________ Government of Israel Total cost of revenues 625 331
2,505 1,840 ---------- ---------- ---------- ---------- __________
__________ __________ __________ Gross profit (loss) (96) 480 1,740
2,304 ---------- ---------- ---------- ---------- Operating
expenses: Gross research and 2,350 4,329 8,135 19,384 development
Less - Royalty bearing and other grants 420 1,591 1,291 2,527
__________ __________ __________ __________ Research and
development, net 1,930 2,738 6,844 16,857 ---------- ----------
---------- ---------- Selling and marketing 285 976 1,083 4,086
General and administrative 433 615 1,912 2,058 __________
__________ __________ __________ Total operating expenses 2,648
4,329 9,839 23,001 ---------- ---------- ---------- ----------
__________ __________ __________ __________ Operating loss (2,744)
(3,849) (8,099) (20,697) Financial income (expenses), net (1,221)
813 (3,734) 1,231 __________ __________ __________ __________ Net
loss $ (3,965) $ (3,036) $ (11,833) $ (19,466) ==========
========== ========== ========== Loss per ordinary share: Basic $
(0.16) $ (0.13) $ (0.48) $ (0.83) ========== ========== ==========
========== Diluted $ (0.16) $ (0.13) $ (0.48) $ (0.83) ==========
========== ========== ========== Shares used in computing loss per
ordinary share: Basic 25,531,732 23,490,732 24,529,362 23,489,497
========== ========== ========== ========== Diluted 25,531,732
23,490,732 24,529,362 23,489,497 ========== ========== ==========
========== Yuval Ruhama CFO Metalink Ltd. Tel: +972-9-9605555 Fax:
+972-9-9605544 DATASOURCE: Metalink Ltd CONTACT: Yuval Ruhama, CFO,
Metalink Ltd., Tel: +972-9-9605555, Fax: +972-9-9605544,
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