GEALYA, Israel, December 15, 2010 /PRNewswire-FirstCall/ --
- Prepays all Outstanding Loan for a $50,000 Discount
- Appoints Oren Brooks as Chief Financial Officer
Metalink Ltd. (NASDAQ: MTLK), today announced its unaudited financial results for the third quarter of 2010 ended September 30, 2010.
FINANCIAL RESULTS
Financial Highlights for the Third Quarter of 2010: Revenues for the third quarter of 2010 were $0.36 million compared to $0 million for the third quarter of 2009; the revenues are only from Metalink's continuing operation, the legacy DSL sales. Net profit for the period from continuing operation was $0.12 million, or $0.046 per share, compared to net loss of $(1.6) million, or $(0.64) per share, for the third quarter of 2009. Net income for the period from discontinued operation was $0 million, or $0 per share, compared to net loss $(2,343) million, or $(0.92) per share, for the third quarter of 2009.
For the First 9 months of 2010: Revenues for the period were $0.62 million, compared to $3.3 million for the period in 2009; the revenues are only from Metalink's continuing operation, the legacy DSL sales. Net loss for the period from continuing operation was $(0.43) million, or $(0.158) per share, compared to $(3.38) million, or $(1.38) per share, for the first nine months of 2009. Net income for the period from discontinued operation was $6.8 million, or $2.53 per share, compared to net loss $(8.46) million, or $(3.44) per share, for the first nine months of 2009.
Cash Status: Metalink's cash, cash equivalents, as of September 30, 2010 were $3.52 million.
OTHER HIGHLIGHTS
Full Repayment of Loan: As previously announced, the remainder of $350,000 owed to the institutional investor was to be paid in three installments between September 30, 2010 and March 31, 2011. However, as recently agreed with the lender, the Company paid the lender $300,000 on December 13, 2010 as a full repayment of the remaining balance, such that the lender granted the Company a $50,000 discount in consideration for the early prepayment.
Appointment of CFO: Mr. Oren Brooks, 45, is one of the founders at Brooks-Keret Financial Services Ltd, a reputable Israeli provider of financial and accounting services. He is an experienced CPA, who served with controlling and CFO services a various start-up's and other companies, he holds a BA degree in accounting and statistics from TA University. Mr. Brooks will be serving as CFO commencing as of December, 2010, as part of the Company's engagement with Brooks-Keret to provide CFO and other financial and accounting services to the Company. He will replace Mr. Rony Eizenshtein, a senior manager at Brooks-Keret, who served as the Company's CFO since March 31, 2010.
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
September 30, December 31,
2010 2009
(Unaudited)
(in thousands except share data)
ASSETS
Current assets
Cash and cash equivalents $3,523 $2,273
Trade accounts receivable 264 461
Other receivables 1,997 602
Prepaid expenses 29 88
Inventories 60 1,068
Total current assets 5,873 4,492
Severance pay fund 16 1,229
Property and equipment, net 85 2,145
Total assets $5,974 $7,866
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $193 $1,542
Other payables and accrued expenses 1,422 3,239
Short-term loan 350 4,100
Warrants to issue shares - 289
Total current liabilities 1,965 9,170
Accrued severance pay 288 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 (145,294) (151,668)
13,606 6,783
Treasury stock, at cost; 89,850 as of
June 30, 2010 and December 31, 2009 (9,885) (9,885)
Total shareholders' equity 3,721 (3,102)
Total liabilities and shareholders'
equity $5,974 $ 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 Nine months ended
September 30, September 30,
2010 2009 2010 2009
(Unaudited) (Unaudited)
(in thousands,
except share and per share data)
Revenues $363 $- $621 $3,288
Cost of revenues:
Costs and expenses 37 5 75 1,005
Royalties to the 8 - 11 99
Government of Israel
Total cost of revenues 45 5 86 1,104
Gross profit 318 (5) 535 2,184
Operating expenses:
Gross research and - - - -
development
Less - Royalty bearing and - - - -
other grants
Research and development, - - - -
net
Selling and marketing - - - -
General and administrative 270 396 920 1,826
Total operating expenses 270 396 920 1,826
Operating profit (loss) 48 (401) (385) 358
Financial income 75 (1,221) (40) (3,734)
(expenses), net
Net loss from continuing $123 $(1,622) $(425) $(3,376)
operation
Discontinued operation
Operating loss from 0 (2,343) (108) (8,457)
discontinued operation
Capital gain from sale of - - 6,907 -
discontinued operation
Net profit (loss) from $0 $(2,343) $6,799 $(8,457)
Discontinued operation
Net profit (loss) $123 $(3,965) $6,374 $(11,833)
Per share data- $0.046 $(0.64) $(0.158) $(1.38)
Basic and Diluted loss
from continuing operations
Basic and Diluted earnings $0 $(0.92) $2.527 $(3.44)
(loss) from discontinued
operations
Basic and Diluted earnings $0.046 $(1.56) $2.369 $(4.82)
(loss)
Shares used in computing
loss per ordinary share*:
Basic and Diluted 2,690,383 2,553,173 2,690,383 2,452,936
* 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.
Neta Eshed
General Counsel
Metalink Ltd.
Tel: +972-77-4495900
Fax: +972-77-4495901
[email protected]
SOURCE Metalink Ltd
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