Metalink Reports Q4 and Full Year 2010 Results
Appoints Shay Evron Chief Financial Officer
GEALYA, Israel, May 20, 2011 /PRNewswire-FirstCall/ -- Metalink Ltd. (NASDAQ: MTLKD), today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2010.
FINANCIAL RESULTS
FINANCIAL HIGHLIGHTS FOR Q4 2010: Revenues for the fourth quarter of 2010 were $0.2 million, all of which were legacy DSL sales, compared with revenues of $0 million for the comparable period in 2009, comprising solely from DSL continued operation (WLAN sales excluded). Net profit for the fourth quarter of 2010 was $0.4 million, or $0.145 per share, compared to net loss of $(1.6) million, or $(0.63) per share, for the fourth quarter of 2009.
FINANCIAL HIGHLIGHTS FOR FY 2010: For the twelve-month period, revenues were $0.8 million compared to $3.3 million for 2009. Net profit for the year was $6.8 million, or $2.44 per share, compared to net loss of $(13.5) million, or $(5.42) per share, for 2009.
CASH STATUS: Metalink's cash and cash equivalents as of December 31, 2010 were $4.4 million (after payoff of $4.1 million Short-term loan) compared to $2.3 million as of December 31, 2009.
OTHER HIGHLIGHTS
APPOINTMENT OF CFO: Mr. Evron will be serving as CFO commencing as of June 30, 2011, as part of the Company's engagement with Fahn Kanne to provide CFO and other financial and accounting services to the Company. Mr. Shay Evron, 39, is a senior manager at Fahn Kanne - Grant Thornton Israel, a reputable Israeli provider of financial and accounting services. He is an experienced CPA who served as a consultant, controller and lead financial adviser in various Israeli private and public companies.
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. For example, when we discuss the appointment of CFO, we are using a forward looking statement. 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 those 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
U.S. dollars in thousands
December 31, December 31,
------------ -------------
2010 2009
------------ -------------
ASSETS
Current assets
Cash and cash equivalents $ 4,357 $ 2,273
Trade accounts receivable 92 461
Other receivables 266 602
Government institutions 66 -
Prepaid expenses 8 88
Advance to supply 175 -
Inventories 37 1,068
------------ -------------
Total current assets 5,001 4,492
- - - - - - - - - - - - -
Severance pay fund - 1,229
- - - - - - - - - - - - -
Property and equipment, net 79 2,145
- - - - - - - - - - - - -
------------ -------------
Total assets $ 5,080 $ 7,866
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 102 $ 1,542
Other payables and accrued expenses 576 3,239
Short-term loan - 4,100
Warrants to issue shares - 289
------------ -------------
Total current liabilities 678 9,170
- - - - - - - - - - - - -
Accrued severance pay 275 1,798
- - - - - - - - - - - - -
Shareholders' equity*
Ordinary shares of NIS 1 par value
(Authorized - 5,000,000 shares, issued and
outstanding 2,780,707 and 2,663,723 shares
as of December 31, 2010 and December 31,
2009 ) 790 759
Additional paid-in capital 158,111 157,692
Accumulated deficit (144,889) (151,668)
------------ -------------
14,012 6,783
- - - - - - - - - - - - -
Treasury stock, at cost; 898,500 as of
December 31, 2010 (9,885) (9,885)
------------ -------------
Total shareholders' equity 4,127 (3102)
- - - - - - - - - - - - -
------------ -------------
Total liabilities and shareholders'
equity $ 5,080 $ 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
U.S. dollars in thousands (except share
data)
Three months ended Year ended
December 31, December 31,
------------------ -----------------
2010 2009 2010 2009
Revenues $ 192 $ - $ 813 $ 3,288
Cost of revenues:
Costs and expenses 22 23 97 1,028
Royalties to the
Government of
Israel 1 (2) 12 97
-------- -------- -------- ----------
Total cost of
revenues 23 21 109 1,125
- - - - - - - - - - - - - - - - -
-------- -------- -------- ----------
Gross profit 169 (21) 704 2,163
- - - - - - - - - - - - - - - - -
Operating
expenses:
Selling and
marketing - - - -
General and
administrative 244 496 1,163 2,322
-------- -------- -------- ----------
Total operating
expenses 244 496 1,163 2,322
- - - - - - - - - - - - - - - - -
Operating profit
(loss) (75) (517) (459) (159)
Financial income
(expenses), net 477 240 438 (3,494)
Net profit (loss)
from continuing
operation $ 402 $ (277) $ (21) $ (3,653)
Discontinued
operation
Operating loss
from discontinued
operation 0 (1,344) (107) (9,801)
Capital gain from
sale of
discontinued
operation - - 6,907 -
-------- -------- -------- ----------
Net profit (loss)
from Discontinued
operation $ 0 $ (1,344) $ 6,800 $ (9,801)
======== ========= ========= =========
Net profit (loss) $ 402 $ (1,621) $ 6,779 $ (13,454)
======== ========= ========= =========
Per share data-
Basic and Diluted
earnings (loss)
from continuing
operations $ 0.145 $ (0.108) $ (0.008) $ (1.471)
======== ========= ========= =========
Basic and Diluted
earnings (loss)
from discontinued
operations $ 0 $ (0.522) $ 2.451 $ (3.947)
======== ========= ========= =========
Basic and Diluted
earnings (loss) $ 0.145 $ (0.630) $ 2.444 $ (5.419)
======== ========= ========= =========
Shares used in
computing loss per
ordinary share*:
Basic and
Diluted 2,780,707 2,573,873 2,773,823 2,482,863
======== ========= ========= =========
* 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.
Oren Brooks
CFO
Metalink Ltd.
Tel: +972-77-4495900
Fax: +972-77-4495901
[email protected]
SOURCE Metalink Ltd
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