Metalink Ltd (OTC: MTLK)

Metalink is a fabless semiconductor company that historically designed and sold digital subscriber line (DSL) chipsets for manufacturers of telecommunications equipment. Prior to February 2010, the company also developed and sold wireless local area network (WLAN) products before divesting that business to Lantiq. Since the sale of its WLAN business, Metalink has not engaged in research and development or manufacturing activities and is evaluating strategic alternatives, including a possible business combination with an operating company. The company’s principal executive offices are located in Israel.

Metalink generated revenue primarily from the sale of its DSL chipsets to telecommunications equipment manufacturers. The company also derived revenue from its WLAN business before the divestiture in February 2010. In March 2015, Metalink shipped its final DSL order to a single customer in Taiwan and received a payment of approximately $450,000, which it recognized as revenue in the first quarter of that year. This transaction marked the last order for its DSL products, which had been subject to an end of life notice issued in early 2008. All of the company’s sales in 2014 and 2015 were to that same Taiwan based customer, and Metalink has recorded no sales since 2016. In addition, the firm has received research grants from the Israeli Innovation Authority and participated in a European Commission sixth framework program, although these contributions are not classified as sales revenue. As a fabless provider, Metalink subcontracted all semiconductor wafer manufacturing, packaging and testing to third party contractors in Taiwan.

Metalink operated as a fabless provider of semiconductor chipsets in the competitive telecommunications equipment market. Its products competed with offerings from other fabless and integrated semiconductor companies that supplied DSL and WLAN solutions to network equipment manufacturers. The company’s competitive advantages stemmed from its proprietary chip designs and established relationships with original equipment manufacturers. Although all of its United States patents expired in 2018, the firm’s historical focus on OEM partnerships and its experience in standards development contributed to its reputation within the industry. The company reports that it currently has no active subsidiaries.

Metalink’s customer base consisted of telecommunications equipment manufacturers that incorporated its chipsets into their products. All of the company’s sales in 2014 and 2015 were to a single, unnamed customer located in Taiwan. No further customer names are disclosed in the filing. The firm has not reported any revenue from customers since 2016. The firm has not engaged in any new product development since the sale of its WLAN business.