[LOGO] One Jake Brown Road
BLONDER Old Bridge, NJ 08857-1000
TONGUE (732) 679-4000 Fax (732) 679-4353
LABORATORIES, INC. www.blondertongue.com One Jake Brown Road
For Immediate Release: Contact: James A. Luksch
April 15, 2005 Chairman and
Chief Executive Officer
(732) 679-4000
BLONDER TONGUE REPORTS 2004 YEAR-END AND FOURTH QUARTER RESULTS
OLD BRIDGE, NEW JERSEY, April 15, 2005 - Blonder Tongue Laboratories, Inc.
(AMEX: "BDR") today announced its sales and earnings for the fourth quarter and
full year ended December 31, 2004.
Net sales for fiscal year 2004 were $39,233,000, compared to the $35,437,000
reported in fiscal year 2003. The increase in net sales is primarily attributed
to an increase in capital spending by cable system operators and generally
improved economic conditions. The Company's gross profit margin increased to
32.1% from 26.8% in the prior year due to a smaller increase in the inventory
reserve, as well as a higher portion of sales in 2004 being comprised of higher
margin products. Earnings from operations were $784,000, compared to a loss of
$2,181,000 reported in 2003, an increase of $2,965,000. The increase in
operating income was attributable to the aforementioned sales and gross margin
increases. Net loss for the year ended 2004 was $3,122,000 or $0.39 loss per
share compared to a loss of $3,122,000 or $0.41 per share for the comparable
period in 2003. The net loss was primarily attributed to a $2,826,000 provision
for income taxes. The provision for income taxes resulted from an increase in
the valuation allowance charged against the Company's Deferred Tax Assets.
Net sales for the fourth quarter 2004 were $8,572,000 compared to the $9,106,000
reported for the fourth quarter of 2003. The Company had an operating loss of
$1,000 for the period compared to an operating loss of $1,065,000 for the
comparable period of 2003. There was a net loss of $3,367,000 for the fourth
quarter of 2004 (which included the $2,826,000 provision for income taxes),
compared to a net loss of $1,909,000 reported for the fourth quarter of 2003.
Diluted net loss per share for the fourth quarter of 2004 was $0.42, compared
with diluted net loss per share for the fourth quarter of 2003 of $0.25.
James A. Luksch, Chairman and Chief Executive Officer commented, "2004 brought
renewed growth in the Company's sales and gross margin. The Company reduced its
accounts payable by $1,234,000, reduced its outstanding debt by $4,433,000, and
expects to have fully paid its outstanding term loan by January 2006. We are
presently benefiting from an increased commitment to capital spending by private
cable operators. If this trend is sustained and we are successful in
accelerating our telephony, high-speed data, and digital TV product sales, we
expect continued improvement in operating performance through 2005."
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 Blonder Tongue's 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, 2004 (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.
Blonder Tongue Laboratories, Inc.
Consolidated Summary of Operating Results
(in thousands, except per-share data)
Three months ended Twelve months ended
December 31, December 31,
(unaudited)
2004 2003 2004 2003
Net Sales $ 8,572 $ 9,106 $ 39,233 $ 35,437
Gross Profit 3,001 1,690 12,602 9,489
Earnings (loss) from
operations ( 1) (1,065) 784 (2,181)
Net loss (3,367) (1,909) (3,122) (3,122)
Net loss per share:
Basic and diluted $ (0.42) $ (0.25) $( 0.39) $ (0.41)
Weighted average shares
outstanding:
Basic and diluted 8,005 7,995 8,001 7,654
Consolidated Summary Balance Sheets
(in thousands)
Dec. 31, Dec. 31,
2004 2003
Current assets $ 16,006 $ 18,951
Property, plant and equipment, net 6,214 6,652
Total assets 38,156 47,990
Current liabilities 5,403 7,360
Long-term liabilities 5,830 9,745
Stockholders' equity 26,923 30,885
Total liabilities and stockholders'
Equity $ 38,156 $ 47,990
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