YAKUM,
SALE OF WLAN BUSINESS
As previously announced, Metalink completed the sale of its wireless
local area network (WLAN) business to Lantiq on
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
CASH STATUS: Metalink's cash and cash equivalents as of
LOAN STATUS: As previously announced, on
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
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
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