[LOGO]
One Jake Brown Road
P.O. Box 1000
Old Bridge, New Jersey 08857-1000
Tel: 732-679-4000 Fax: 732-679-4353
FOR IMMEDIATE RELEASE CONTACT: James A. Luksch
Chairman and
Chief Executive Officer
(732) 679-4000
BLONDER TONGUE REPORTS 2007 SECOND QUARTER RESULTS
OLD BRIDGE, NEW JERSEY, August 9, 2007 - Blonder Tongue Laboratories, Inc.
(AMEX: "BDR") today announced its sales and earnings for the second quarter
ended June 30, 2007.
Net sales decreased $1,431,000, or 15.0%, to $8,091,000 in the second three
months of 2007 from $9,522,000 in the second three months of 2006. The decrease
in sales is primarily attributed to a decrease in headend and interdiction
product sales. Headend product sales were $3,907,000 and $4,806,000 and
interdiction product sales were $308,000 and $650,000 in the second three months
of 2007 and 2006, respectively.
Cost of goods sold decreased to $5,712,000 for the second three months of 2007
from $6,510,000 for the second three months of 2006, but increased as a
percentage of sales to 70.6% from 68.4%. The decrease was attributed primarily
to a decrease in sales in the second three months of 2007 as compared to 2006,
offset by an increase in the provision for inventory reserves of $558,000. Of
the 2.2% increase in cost of goods sold as a percentage of sales, 6.9%, as a
percentage of sales, is attributable to the increase in the provision for
inventory reserves offset by a decrease in cost of goods sold as percentage of
sales of 4.7% due to a more favorable product mix.
Loss from continuing operations after income taxes was $822,000 or $(0.13) per
share for the second three months of 2007 compared to a loss of $332,000 or
$(0.04) per share for the comparable period in 2006.
Commenting on the second quarter 2007 results, James A. Luksch, Chief Executive
Officer, said, "Although our second quarter sales were lower compared to the
prior year, we did see improvement sequentially as our second quarter sales were
approximately 8% higher than the first quarter. We are continuing our efforts to
reduce operating expenses and expect to see annualized improvements in excess of
$1,000,000. Our China initiative remains on course and we expect to realize
noticeable benefits from reduced costs beginning in the third quarter of 2007,
with further improvements continuing into 2008."
Founded in 1950, Blonder Tongue Laboratories, Inc. has evolved from a
manufacturer of electronic equipment for the private cable industry to a
principal provider of integrated network solutions and technical services to
broadband service providers in the multiple dwelling unit, lodging and
hospitality, and institutional cable markets. The Company designs, manufactures,
and supplies a comprehensive line of equipment to deliver video (analog &
digital), high speed data and voice services over integrated coaxial and fiber
optic broadband networks today and over packet based, Internet protocol networks
of the future. 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, 2006 (See Item 1: Business,
Item 1A: Risk Factors 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", "should", "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
-MORE-
Blonder Tongue Laboratories, Inc.
Consolidated Summary of Operating Results
(in thousands, except per-share data)
(unaudited)
Three months ended Six months ended
June 30, June 30,
------------------------- -----------------------
------------ ------------ ----------- -----------
2007 2006 2007 2006
Net sales $8,091 $9,522 $15,590 $19,479
Gross profit 2,379 3,012 4,874 6,310
Earnings (loss) from
operations (704) (98) (1,428) 464
Loss from continuing
operations (822) (332) (1,664) (15)
Loss from discontinued
operations (59) (72) (59) (197)
Net loss $(881) $(404) $(1,723) $(212)
Basic and diluted loss
per share from
continuing operations $(0.13) $(0.04) $(0.27) $(0.02)
Basic and diluted loss
per share from
discontinued operations $(0.01) $(0.01) $(0.01) $(0.01)
Basic and diluted net loss
per share $(0.14) $(0.05) $(0.28) $(0.03)
Basic and diluted weighted
average shares outstanding: 6,222 8,010 6,222 8,013
Consolidated Summary Balance Sheets
(in thousands)
June 30, December 31,
2007 2006
(unaudited)
Current assets $14,173 $14,942
Property, plant, and equipment, net 4,375 4,537
Total assets 26,026 27,222
Current liabilities 5,491 5,431
Long-term liabilities 1,437 1,559
Stockholders' equity 19,098 20,232
Total liabilities and stockholders' equity $26,026 $27,222
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