EXHIBIT 99.1
[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 THIRD QUARTER RESULTS
OLD BRIDGE, NEW JERSEY, November 14, 2007 - Blonder Tongue Laboratories, Inc.
(AMEX: "BDR") today announced its sales and earnings for the third quarter ended
September 30, 2007.
Net sales increased $158,000, or 1.7%, to $9,246,000 in the third three months
of 2007 from $9,088,000 in the third three months of 2006. The increase in sales
is primarily attributed to an increase in digital product sales offset by a
decrease in fiber, distribution and interdiction product sales. Digital product
sales were $1,544,000 and $958,000, fiber products sales were $388,000 and
$647,000, distribution product sales were $1,771,000 and $1,977,000 and
interdiction product sales were $151,000 and $319,000 in the third three months
of 2007 and 2006, respectively.
Cost of goods sold increased to $5,758,000 for the third three months of 2007
from $5,650,000 for the third three months of 2006, and increased as a
percentage of sales to 62.3% from 62.2%. The increase was attributed to an
unfavorable product mix.
Earnings from continuing operations after income taxes was $572,000 or $0.09 per
share for the third three months of 2007 compared to a $345,000 or $0.04 per
share for the comparable period in 2006.
Commenting on the third quarter 2007 results, James A. Luksch, Chief Executive
Officer, said, "Our China initiative remains on course and during the third
quarter we started to realize noticeable benefits from reduced costs due to this
effort. This is evidenced by the fact that our gross margin on sales of products
improved from 36.3% in the second quarter of 2007 (after giving effect to our
increase in inventory reserves) to 37.7% in the third quarter of 2007. We
anticipate further improvements in gross margin in the fourth quarter of 2007
and continuing into 2008. Our third quarter sales were higher as compared to the
prior year and we continued to show improvement sequentially as our third
quarter sales in 2007 were approximately 14% higher than the second quarter of
2007."
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, including the anticipated
gross margin improvements due to the China initiative.
-MORE-
Blonder Tongue Laboratories, Inc.
Consolidated Summary of Operating Results
(in thousands, except per-share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
-------------------- -------------------
--------- ---------- ---------- --------
2007 2006 2007 2006
Net sales $9,246 $9,088 $24,836 $28,567
Gross profit 3,488 3,438 8,362 9,748
Earnings (loss) from operations 694 515 (734) 979
Earnings (loss) from
continuing operations 572 345 (1,092) 330
Loss from discontinued operations - (170) (59) (367)
Net earnings (loss) $572 $175 $(1,151) $(37)
Basic and diluted earnings
(loss) per share from
continuing operations $0.09 $0.04 $(0.17) $0.04
Basic and diluted loss per
share from discontinued
operations $- $(0.02) $(0.01) $(0.04)
Basic and diluted net earnings
(loss) per share $0.09 $0.02 $(0.18) $ -
Basic and diluted weighted
average shares outstanding: 6,222 7,515 6,222 7,845
Consolidated Summary Balance Sheets
(in thousands)
September 30, December 31,
2007 2006
(unaudited)
Current assets $14,204 $14,942
Property, plant, and equipment, net 4,313 4,537
Total assets 26,693 27,222
Current liabilities 5,540 5,431
Long-term liabilities 1,375 1,559
Stockholders' equity 19,778 20,232
Total liabilities and stockholders' equity $26,693 $27,222
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