GEALYA, Israel, October 27, 2010 /PRNewswire-FirstCall/ -- Metalink Ltd. (NASDAQ: MTLK), today announced its unaudited financial results for the second quarter of 2010 ended June 30, 2010.
Financial Results
Financial highlights for the second quarter of 2010: Revenues for the second quarter of 2010 were $0.2 million compared to $1.66 million for the second quarter of 2009; the revenues are only from our continuing operation, the legacy DSL sales. Net profit (loss) for the period from our continuing operation was $(0.06) million, or $(0.02) per share, compared to $(1.45) million, or $(0.60) per share, for the second quarter of 2009. Net profit (loss) for the period from discontinued operation was $0.1 million, or $0.04 per share, compared to net loss $(2.95) million, or $(1.22) per share, for the second quarter of 2009.
For the first 6 months of 2010: Revenues for the period were $0.26 million, compared to $3.3 million for the first half of 2009; the revenues are only from our continuing operation, the legacy DSL sales. Net profit (loss) for the period from our continuing operation was $(0.55) million, or $(0.2) per share, compared to $(1.75) million, or $(0.73) per share, for the first six months of 2009. Net profit (loss) for the period from discontinued operation was $6.8 million, or $2.53 per share, compared to net loss $(6.1) million, or $(2.55) per share, for the first six months of 2009.
Cash status: Metalink's cash, cash equivalents, as of June 30, 2010 were $3.61 million.
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 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
June 30, December 31,
2010 2009
(Unaudited)
(in thousands except share data)
ASSETS
Current assets
Cash and cash equivalents $ 3,609 $ 2,273
Trade accounts receivable 110 461
Other receivables 1,873 602
Prepaid expenses 52 88
Inventories 88 1,068
Total current assets 5,732 4,492
Severance pay fund 16 1,229
Property and equipment, net 91 2,145
Total assets $ 5,839 $ 7,866
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 212 $ 1,542
Other payables and accrued expenses 1,397 3,239
Short-term loan 350 4,100
Warrants to issue shares - 289
Total current liabilities 1,959 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 June 30, 2010 and
December 31, 2009, respectively) 790 759
Additional paid-in capital 158,110 157,692
Accumulated deficit (145,417) (151,668)
13,483 6,783
Treasury stock, at cost; 89,850 as of
June 30, 2010 and December 31, 2009 (9,885) (9,885)
Total shareholders' equity 3,598 (3,102)
Total liabilities and shareholders'
equity $ 5,839 $ 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 Six months ended
June 30, June 30,
2010 2009 2010 2009
(Unaudited) (Unaudited)
(in thousands,
except share and per share data)
Revenues $ 208 $ 1,663 $ 258 $ 3,288
Cost of revenues:
Costs and expenses 38 548 38 1,000
Royalties to the
Government of Israel 3 51 3 99
Total cost of revenues 41 599 41 1,099
Gross profit 167 1,064 217 2,189
Operating expenses:
Gross research and
development - - - -
Less - Royalty bearing and
other grants - - - -
Research and development,
net - - - -
Selling and marketing - - - -
General and administrative 215 957 649 1,430
Total operating expenses 215 957 649 1,430
Operating profit (loss) (48) 107 (432) 759
Financial income
(expenses), net (8) (1,555) (161) (2,513)
Net loss from continuing
operation $ (56) $ (1,448) $ (548) $ (1,754)
Discontinued operation
Operating loss from
discontinued operation 111 (2,952) (108) (6,114)
Capital gain from sale of
discontinued operation - - 6,907 -
Net profit (loss) from $ 111 $ (2,952) $ 6,799 $ (6,114)
Discontinued operation
Net profit (loss) $ 55 $ (4,400) $ 6,251 $ (7,868)
Per share data-
Basic and Diluted loss
from continuing operations $ (0.02) $ (0.60) $ (0.20) $ (0.73)
Basic and Diluted earnings)
(loss) from discontinued
operations $ 0.04 $ (1.22) $ 2.53 $ (2.55
Basic and Diluted earnings
(loss) $ 0.02 $ (1.82) $ 2.33 $ (3.28)
Shares used in computing
loss per ordinary share*:
Basic and Diluted 2,690,383 2,418,595 2,690,383 2,401,984
* 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.
Contact:
Neta Eshed
General Counsel
Metalink Ltd.
Tel: +972-77-4495900
Fax: +972-77-4495901
Neta@MTLK.com
SOURCE Metalink Ltd
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