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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