Fabless semiconductor company
(Nasdaq:MTLK) today reported a 95% increase in its first quarter 2001 revenues of $8,108,000, as compared with revenues of $4,168,000 during the same period in 2000. The quarter's figures also show a 10% increase over the $7,362,000 reported by the firm in the previous quarter. This is the company's eighth consecutive period of record revenues.
Net income for the first quarter of 2001 was $547,000, compared to $11,000 for the first quarter of 2000 and a net income of $738,000 for the fourth quarter of 2000. Earnings per share for the first quarter of 2001 were $0.03 on a fully diluted basis, compared to $0.00 for the first quarter of 2000, and $0.04 per share for the fourth quarter of 2000.
Gross margin for the first quarter of 2001 was 57.8%, compared to 52.2% for the first quarter of 2000, and 56.5% for the fourth quarter of 2000. Metalink's Chairman and CEO Tzvi Shukhman said: "We continued to focus in the first quarter on the solid worldwide E1 HDSL market, while substantially increasing the number of design-wins in the potentially high-growth emerging G.SHDSL, HDSL2 and VDSL markets."
Shukhman admitted that the firm experienced a slow down in order commitments and visibility in the first quarter, which he says reflects current industry conditions and general economic weakness. "Such current industry conditions may cause a 10 to 20 percent reduction in revenues for the second quarter," he said.
"However, the anticipated production ramp up of our top tier Hydra, Gryphon and Centaur design wins in the second half of the year is expected to contribute to an overall increase of 40 to 50 percent in revenues for 2001. Furthermore, this period presents recruiting opportunities to further accelerate our growth. This is reflected in our earnings per share estimates for the year 2001 of 6 to 12 cents," Shukhman concluded.
Metalink develops and markets high performance DSL chip sets used by telecommunications equipment makers. It provides network equipment vendors with DSL-based chip sets that solve network bandwidth access bottlenecks. The company is currently broadening its scope of activities by developing a system on silicon solutions for G.SHDSL for DSLAM line cards and CPE IADs, as well as VDSL for streaming video delivery.