UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2006
METALINK LTD.
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(TRANSLATION OF REGISTRANT'S NAME INTO ENGLISH)
YAKUM BUSINESS PARK, YAKUM 60972, ISRAEL
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
The following are included in this Report on Form 6-K: 1. Press release dated May 04, 2006. The information contained in this Report on Form 6-K is hereby incorporated by reference into the Registration Statement on Forms F-3 No. 333-104147, and No. 333-13806.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
METALINK LTD.
Date: May 04, 2006 By: /S/ Yuval Ruhama
--------------------
Yuval Ruhama
Chief Financial Officer
Yuval Ruhama Mor Abraham
CFO Marketing Communications Manager
Metalink Ltd. Metalink Ltd.
Tel: 972-9-9605395 Tel: 972-9-9605406
Fax: 972-9-9605544 Fax: 972-9-9605544
yuvalr@metalinkbb.com amor@metalinkbb.com
METALINK REPORTS RESULTS FOR FIRST QUARTER OF 2006
Yakum, Israel, May 4, 2006 - Metalink Ltd. (NASDAQ: MTLK), a global provider and
developer of high-performance broadband silicon solutions, today announced
results for the first quarter ended March 31, 2006.
Revenues for the first quarter were $3.1 million, an increase of 2% compared to
the $3.0 million recorded in the first quarter of 2005. Net loss for the first
quarter of 2006 improved by 23% on a year-over-year basis to $4.1 million, or
$(0.21) per share, compared to $5.3 million, or $(0.27) per share, in the first
quarter of 2005. Net loss for the first quarter of 2006 includes stock-based
compensation expenses of $0.4 million recorded as a result of the adoption of
SFAS 123(R).
Metalink's cash, cash equivalents short and long-term investments at the end of
the first quarter of 2006 were $35.2 million compared to $37.9 million at the
end of 2005.
Highlights of the first quarter included:
o JOINT PRODUCT DEMONSTRATION AT CES 2006 WITH HAIER CORPORATION, the leading
Chinese manufacturer of household electrical appliances - show casing
multiple High Definition wireless video streaming using Metalink's
802.11n-draft-compliant WLANPLUS(TM) chipset and Haier's wireless concept
products of HDTV's, Digital Video Recorders, Set Top Boxes and DVDs.
o ANNOUNCEMENT OF THE STRATEGIC COOPERATION WITH RENESAS TECHNOLOGY, the
semiconductor spin-off of Hitachi and Mitsubishi, and one of the world's
largest semiconductor companies. This collaboration was demonstrated at CES
where Metalink and Renesas presented their joint product offering and road
map to world leading consumer electronics manufacturers.
o ENGAGEMENTS WITH NUMEROUS ADDITIONAL STRATEGIC PARTNERS AND CUSTOMERS for
the introduction of products enabling multiple High Definition video
streaming over wireless 802.11n networks.
Commenting on the results, Metalink's chairman and CEO, Tzvika Shukhman, said,
"We are excited by the progress we have made this quarter in executing our
strategic plan to become the dominant provider of silicon solutions, enabling a
new experience of digital home entertainment by offering unmatched wireless
connectivity. Our recent announcements with consumer electronic giants such as
Haier and Renesas have further validated our leadership which will be extended
in the near term by additional announcements.
"The opportunity we are facing is huge. According to a recent report published
by ABI Research, sales of Wi-Fi chipsets for use in consumer electronics such as
HDTV displays and DVRs, driven by the adoption of the 802.11n standard, will
rise sharply in 2007 to 95 million units from 8.8 million in 2004. Our focus on
this segment of the market, which requires implementation of very challenging
optional specifications of the 802.11n standard, is putting us in a unique
leadership position. We are optimistic that this early leadership will develop
during 2007 into an engine for rapid growth and strong profitability over the
long term" concluded Mr. Shukhman.
ABOUT METALINK
Metalink Broadband (NASDAQ: MTLK) is a leading provider of high performance
wireless and wireline broadband communication silicon solutions. Metalink's WLAN
and DSL technologies are designed to enable true broadband connectivity in every
home, and its products revolutionize the broadband experience by facilitating
the convergence of telecommunication, networking and entertainment.
Metalink aims to redefine the home broadband experience by introducing WLANPLUS
- a high-throughput wireless LAN technology, 5-10 times faster than currently
available wireless LAN 802.11a/b/g technologies. Featuring MIMO technology
adopted by the 802.11n standardization, WLANPLUS enables room-to-room networking
of multiple high-definition video streams.
Metalink's DSL products offer service providers a cost-effective network upgrade
to support triple-play services. Using Metalink's innovative VDSL technologies
operators can deliver fiber-like speeds over existing copper infrastructure.
Metalink's chipsets are deployed in millions of DSL lines by leading service
providers worldwide.
Metalink is a fabless semiconductor company headquartered in Yakum, Israel. The
company has subsidiaries in Atlanta (US), South Korea, and Japan as well as
offices in China. Further information is available at http://www.metalinkbb.com
###
This press release contains "forward looking" information within the meaning of
the United States securities laws that involve risks and uncertainties that
could cause actual results to differ materially from those in the forward
looking statements. 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. 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
MARCH 31, DECEMBER 31,
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2006 2005
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(UNAUDITED)
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(IN THOUSANDS EXCEPT SHARE DATA)
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,359 $ 7,134
Short-term investments 21,558 20,142
Trade accounts receivable 1,958 2,880
Other receivables 1,594 1,498
Prepaid expenses 1,144 695
Inventories 3,994 4,250
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Total current assets 32,607 36,599
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LONG-TERM INVESTMENTS 11,259 10,589
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SEVERANCE PAY FUND 1,701 1,802
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PROPERTY AND EQUIPMENT, NET 3,516 3,863
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Total assets $ 49,083 $ 52,853
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 1,425 $ 1,639
Other payables and accrued expenses 3,697 3,862
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Total current liabilities 5,122 5,501
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ACCRUED SEVERANCE PAY 2,686 2,747
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SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.1 par value (Authorized -
50,000,000 shares, issued and outstanding -
20,469,333 and 20,358,373 shares as of March 31,
2006 and December 31, 2005, respectively) 609 607
Additional paid-in capital 131,531 130,810
Deferred stock compensation - (6)
Accumulated other comprehensive loss (201) (228)
Accumulated deficit (80,779) (76,693)
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51,160 54,490
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Treasury stock, at cost; 898,500 as of
March 31, 2006 and December 31, 2005 (9,885) (9,885)
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Total shareholders' equity 41,275 44,605
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Total liabilities and shareholders' equity $ 49,083 $ 52,853
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METALINK LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31,
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2006 2005
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(UNAUDITED) (UNAUDITED)
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(IN THOUSANDS,
EXCEPT SHARE AND PER SHARE DATA)
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Revenues $ 3,074 $ 3,001
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Cost of revenues:
Costs and expenses 1,469 1,521
Royalties to the Government of Israel 95 71
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Total cost of revenues 1,564 1,592
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GROSS PROFIT 1,510 1,409
Operating expenses:
Gross research and development 4,861 5,344
Less - Royalty bearing and other grants 633 935
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Research and development, net 4,228 4,409
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Selling and marketing 1,231 1,735
General and administrative 461 851
Non-cash compensation - 9
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Total operating expenses 5,920 7,004
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OPERATING LOSS (4,410) (5,595)
Financial income, net 324 312
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NET LOSS $ (4,086) $ (5,283)
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Loss per ordinary share:
Basic $ (0.21) $ (0.27)
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Diluted $ (0.21) $ (0.27)
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Shares used in computing loss per ordinary share:
Basic 19,533,774 19,277,342
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Diluted 19,533,774 19,277,342
============ ============