[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 2
Blonder Tongue Laboratories (BDRL) 8-KResults of Operations and Financial Condition
Filed: 15 Apr 05, 12:00am