YAKUM, Israel, July 8, 2010 /PRNewswire-FirstCall/ -- Metalink
Ltd. (NASDAQ: MTLK), today announced its unaudited financial
results for the first quarter of 2010 ended March 31, 2010.
SALE OF WLAN BUSINESS
As previously announced, Metalink completed the sale of its
wireless local area network (WLAN) business to Lantiq on
February 15, 2010. Under the terms of
the agreement, Lantiq has agreed to pay Metalink a total of up to
$16.5 million in cash, $5.7 million of which were paid at the closing
and additional payments, at the total amount of approximately
$1.5 million, were paid through
March 31, 2010. As a result of the
sale, Metalink recorded a capital gain of approximately
$6.9 million.
Following the sale, the results of operations of the WLAN
business are reported as discontinued operation and the results
from continuing operation no longer include revenues and expenses
attributable to the WLAN business.
As a result of our holding of the proceeds of the sale of the
WLAN business, there is a high likelihood that Metalink will be
classified as a passive foreign investment company for U.S. federal
income tax purposes in 2010 and possibly also in later years unless
and until we invest a sufficient portion of those proceeds in
assets that do not produce passive income.
FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER OF 2010: Revenues for
the first quarter of 2010 were $0.05
million compared to $1.6
million for the first quarter of 2009. Net income (loss) for
the period was $6.2 million, or
$2.31 per share, including the
capital gain of approximately $6.9
million from the sale of the WLAN business. Net loss from
continuing operation for the period was $(0.5) million, or $(0.18) per share, compared to $(0.3) million, or $(0.13) per share, for the first quarter of 2009.
Net income (loss) for the period from discontinued operation was
$6.7 million, or $2.49 per share, compared to $(3.2) million, or $(1.32) per share, for the first quarter of
2009.
CASH STATUS: Metalink's cash and cash equivalents as of
March 31, 2010 were $4.1 million.
LOAN STATUS: As previously announced, on December 30, 2009, we entered into an amendment
to the Loan Agreement, whereby the repayment of the $4.3 million originally due under the Loan
Agreement was reduced to $4.1 million
to be repaid in four installments: $3,750,000 was repaid concurrently with the
closing of the sale of the WLAN business and the remainder is to be
paid in three installments between September
30, 2010 and March 31,
2011.
ABOUT METALINK
Metalink shares trade on Nasdaq under the symbol "MTLK". For
more information, please visit our website 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:
absence of significant operations following the Lantiq Transaction;
uncertainty as to our future business model and our ability to
identify and evaluate suitable business opportunities; and our U.S.
shareholders may suffer adverse tax consequences if we will be
classified as a passive foreign investment company. 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
March 31, December 31,
2010 2009
(Unaudited)
(in thousands except share data)
ASSETS
Current assets
Cash and cash equivalents $ 4,130 $ 2,273
Trade accounts receivable - 461
Other receivables 2,103 602
Prepaid expenses 93 88
Inventories 305 1,068
Total current assets 6,631 4,492
Severance pay fund 16 1,229
Property and equipment, net 98 2,145
Total assets $ 6,745 $ 7,866
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 406 $ 1,542
Other payables and accrued expenses 2,156 3,239
Short-term loan 350 4,100
Warrants to issue shares - 289
Total current liabilities 2,912 9,170
Accrued severance pay 282 1,798
Shareholders' equity*
Ordinary shares of NIS 1.0 par value
(Authorized - 5,000,000 shares, issued
and outstanding - 2,780,231 and
2,663,723 shares as of March 31, 2010
and December 31, 2009, respectively)
790 759
Additional paid-in capital 158,110 157,692
Accumulated deficit (145,464) (151,668)
13,436 6,783
Treasury stock, at cost; 89,850 as of
March 31, 2010 and December 31, 2009 (9,885) (9,885)
Total shareholders' equity 3,551 (3,102)
Total liabilities and shareholders'
equity $ 6,745 $ 7,866
* The number of shares have been adjusted retroactively to
reflect the one for ten reverse split of our ordinary shares dated
February 22, 2010.
METALINK LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended March 31,
2010 2009
(Unaudited) (Unaudited)
(in thousands,
except share and per share data)
Revenues $ 50 $ 1,625
Cost of revenues:
Costs and expenses - 452
Royalties to the Government of Israel - 48
Total cost of revenues - 500
Gross profit 50 1,125
Operating expenses:
Gross research and development - -
Less - Royalty bearing and other grants - -
Research and development, net - -
Selling and marketing - -
General and administrative 434 473
Total operating expenses 434 473
Operating profit (loss) (384) 652
Financial income (expenses), net (100) (958)
Net loss from continuing operation $ (484) $ (306)
Discontinued operation
Operating loss from discontinued operation (219) (3,162)
Capital gain from sale of discontinued 6,907 -
operation
Net profit (loss) from Discontinued $ 6,688 $ (3,162)
operation
Net profit (loss) $ 6,204 $ (3,468)
Per share data-
Basic loss from continuing operations $ (0.18) $ (0.13)
Diluted loss from continuing operations $ (0.18) $ (0.13)
Basic and Diluted earnings (loss) from $ 2.49 $ (1.32)
discontinued operations
Basic earnings (loss) per share $ 2.31 $ (1.45)
Basic earnings (loss) per share $ 2.31 $ (1.45)
Shares used in computing loss per ordinary
share*:
Basic and Diluted 2,690,373 2,385,373
* Shares used for loss per share calculation have been adjusted
retroactively to reflect the one for ten reverse split of our ordinary
shares dated February 22, 2010.
Rony Eizenshtein
CFO
Metalink Ltd.
Tel: +972-9-9605555
Fax: +972-9-9605544
SOURCE Metalink Ltd
