Fabless semiconductor company Metalink Ltd. (Nasdaq: MTLK;TASE: MTLK) today published its financial report for the fourth quarter and full year of 2008. The company warned that unless it obtained new financing "on a timely basis, expects that it will be forced to scale down its operations significantly, and may even be required to cease its operations."
Metalink's share fell 20.1% on the TASE to NIS 0.60 today. The share opens at $0.16 on Nasdaq.
Metalink doubled its revenue to $3 million for the fourth quarter of 2008 from $1.4 million for the corresponding quarter of 2007, and narrowed its net loss to $1.5 million ($0.06 per share) from $8.5 million for the corresponding quarter.
For the year as a whole, revenue fell to $7.2 million from $10.2 million in 2007. The net loss declined to $21 million ($0.89 per share) from $24.3 million in 2008. The company had $5.8 million in cash at the end of the year. Including a $2.25 million in a short-term loan from an institutional investor obtained in January and a $3.5 million short term secured in the third quarter of last year, the company has a loan balance of $5.75 million, and it may request an additional loan of up to $2.25 million from the institutional investor.
Metalink CEO Tzvika Shukhman said, "During 2008, we implemented a restructuring plan that allowed us to reduce our operating expenses significantly while maintaining our leadership position in our focus markets. Our products are currently being designed into major carrier-class 802.11n residential gateways and video bridges aiming major deployments worldwide. Our customers have started to ship products for pilot deployments and we are cautiously optimistic that these initial deployments will ramp up during the later part of 2009."
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2009
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