[BlonderTongue Laboratories, Inc. Logo]
One Jake Brown Road
Old Bridge, NJ 08857-1000
(732) 679-4000 Fax (732) 679-4353
www.blondertongue.com
For Immediate Release: Contact: James A. Luksch
November 8, 2004 Chairman and
Chief Executive Officer
(732) 679-4000
BLONDER TONGUE ANNOUNCES RESTATEMENT OF CERTAIN FINANCIAL STATEMENTS
OLD BRIDGE, NEW JERSEY, November 8, 2004 - Blonder Tongue Laboratories, Inc.
(AMEX: "BDR") today announced that it is in the process of preparing a
restatement of certain past financial statements. Due to accounting adjustments
in 2001 and 2002 that are described in more detail below, the financial
statements of the Company for the following periods should no longer be relied
upon:
o Audited consolidated financial statements as of December 31, 2001, 2002 and
2003 and for each of the years in the three year period ended December 31,
2003, and
o Unaudited consolidated balance sheets as of March 31, 2004 and June 30,
2004.
The Company intends to file amendments to its Annual Report on Form 10-K for the
fiscal year ended December 31, 2003 and the subsequent Quarterly Reports on Form
10-Q for the quarters ended March 31, 2004 and June 30, 2004 to restate the
financial statements and related information contained therein. On November 2,
2004, the Company's Audit Committee agreed with management's recommendation to
restate the financial statements of the Company for these periods.
The Company's restatement arises from a determination that a vendor's account
payable balance was incorrectly recorded in 2001 and 2002. Certain amounts due
to this vendor related to inventories received that were not correctly recorded,
and resulted in accounts payable being understated. These incorrect amounts also
resulted in the understatement of cost of goods sold in 2001 and 2002, the
overstatement of net income in 2001 and the understatement of net loss in 2002
and 2003. The effect of these entries, net of taxes, on the financial statements
of the Company is summarized below and will be set forth in greater detail in
the amended Form 10-K and Forms 10-Q that are expected to be filed in November
2004.
The following table sets forth selected line items from the Company's
consolidated statement of operations that are affected by the restatement on a
restated basis and as previously reported:
(In thousands, except per-share amount)
For the Year Ending For the Year Ending For the Year Ending
December 31, 2003 December 31,2002 December 31, 2001
------------------------ ----------------------- ------------------------------
As As
restated reported restated reported
------------ --------------- -------------- --------------
- ------------- --------------
Cost of goods sold $25,948 $25, 948 $34,718 $ 34,195 $37,460 $36,928
Provision (benefit) for
income taxes (318) (691) 43 221 509 704
Net (loss) earnings (3,122) (2,749) (6,802) (6,457) 880 1,217
Basic and diluted earnings
(loss) per share (0.41) (0.36) (0.89) (0.84) 0.12 0.16
The effect on the 2002 and 2003 quarters will be reflected in the amended Form
10-K for the fiscal year ended December 31, 2003.
The following table sets forth selected line items from the Company's
consolidated balance sheet that are affected by the restatement on a restated
basis and as previously reported:
(In thousands)
At December 31, 2003 At December 31, 2002 AtDecember 31, 2001
As As As As As As
restated reported restated reported restated reported
------------ ------------- -------------- --------------- -------- ---------
Deferred income
taxes (current) $ 2,279 $ 2,279 $ 2,231 $ 1,858 $1,551 $ 1,746
Accounts payable 2,731 1,676 1,943 888 7,204 6,672
Retained earnings 12,187 13,242 15,309 15,991 22,111 22,448
As previously reported in the Company's Form 10-Q for the quarter ended June 30,
2004, the Company reclassified certain inventory not anticipated to be sold in
the next twelve months, as non-current. This procedure was applied to the
December 31, 2003 balance sheet during the second quarter of 2004. The amended
Form 10-K for the fiscal year ended December 31, 2003 and the amended Form 10-Q
for the quarter ended March 31, 2004, will also reflect this change to the
December 31, 2003 and March 31, 2004 balance sheets.
The Company has concurrently filed a current report on Form 8-K with the
Securities and Exchange Commission with respect to the anticipated restatements.
Founded in 1950, Blonder Tongue Laboratories is a leading U.S. designer,
manufacturer, and supplier of a comprehensive line of broadband systems
equipment and technical engineering services for Voice, Video and Data service
providers. With optimized technologies, simplified deployment and qualified
technical assistance, the service provider reduces costs, increases customer
satisfaction and increases profitability. For more information regarding Blonder
Tongue or its products, please visit the Company's Web site at
www.blondertongue.com or contact the Company directly at (732) 679-4000.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The information set forth above includes "forward-looking" statements and
accordingly, the cautionary statements contained in Blonder Tongue's Annual
Report and Form 10-K for the year ended December 31, 2003 (See Item 1: Business
and Item 7: Management's Discussion and Analysis of Financial Condition and
Results of Operations), and other filings with the Securities and Exchange
Commission are incorporated herein by reference. The words "believe", "expect",
"anticipate", "project", and similar expressions identify forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis only as of the
date hereof. Blonder Tongue undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that arise after
the date hereof. Blonder Tongue's actual results may differ from the anticipated
results or other expectations expressed in Blonder Tongue's "forward-looking"
statements.
