Metalink Ltd. (Nasdaq: MTLK;TASE: MTLK) has received a going concern warning from its auditor, Deloitte Brightman Almagor Zohar Israel. The broadband communication chipset developer added that it hired Oppenheimer & Co. Inc. as its financial advisor to help raise additional financing or pursue other strategic alternatives.
Two months ago, Metalink warned in its financial report for 2008 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." Yesterday's announcement was the first subsequent disclosure about this matter.
Last summer, the company said that it was pursuing financial and strategic options about its future, including a possible sale of the company or investment by a strategic partner, but there has been no subsequent disclosure about this either.
Metalink also disclosed an item from its upcoming financial report for the first quarter of 2009, stating that it had $8.5 million in cash, up from $5.8 million at the end of 2008.
The company already markets its n802.11 standard chipset for wireless and wireline broadband communications.
Metalink's share fell 15.7% to $0.16 yesterday, after rising 11.7% on Nasdaq on Tuesday to $0.19. Its current market cap is $3.8 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2009
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