EXHIBIT 99.1
[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
Chairman and
Chief Executive Officer
(732) 679-4000
BLONDER TONGUE DISCONTINUES SMALL SUBSCRIBER BASED BUSINESS
Represents Completion of Non-Core Business Divestitures Under Strategic Plan
OLD BRIDGE, NJ, April 18, 2008 - - Blonder Tongue Laboratories, Inc. (AMEX:
"BDR") today announced that on April 10, 2008, its Board of Directors made the
decision to cease the operations of its wholly-owned subsidiary, Hybrid
Networks, LLC ("Hybrid"), and liquidate its assets. The Company plans to wind
down the operations of Hybrid by August 1, 2008.
Hybrid's business activities consist of the operation of video, high-speed data
and/or telephony systems ("Systems") at 4 multi-dwelling unit communities under
certain right-of-entry agreements ("ROE Agreements"). As part of the Company's
on-going implementation of its strategic plan, management has continued to
evaluate the impact and long-term viability of non-core business activities,
including the continued operation of the Systems. The decision of the Board of
Directors to discontinue Hybrid's operations was based upon such evaluation and
the current cash flow and operating losses of Hybrid.
Based on this decision, the Company concluded on April 10, 2008 that a non-cash
impairment charge in the amount of approximately $400,000 is required to
write-off Hybrid's assets, which includes the ROE Agreements and the equipment
necessary to operate the Systems, substantially all of which is installed at the
applicable property location.
As a result of ceasing the operations of Hybrid, the Company expects to make
cash expenditures of approximately $50,000 in connection with the early
termination of certain contracts and agreements related to the operation of the
Systems.
The Company expects a loss of revenue of approximately $140,000, an improvement
of operating expenses of approximately $150,000 and a cash flow improvement of
approximately $75,000 all on an annualized basis as a result of discontinuing
the operation.
Commenting on the transaction, James A. Luksch, Chairman and Chief Executive
Officer said, "The decision to discontinue Hybrid is the final step in our
divestiture of non-core businesses. We continue to be focused on improving
operating expenses and profitability."
About Blonder Tongue and Hybrid
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. 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.
Hybrid Networks, LLC was formed by Blonder Tongue in 2002 for the purpose of
acquiring video, data and telephony private cable television systems. Hybrid
provides video, high-speed data and telephony services to MDU communities
located in New Jersey, Maryland, and Virginia.
"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, 2007 (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.
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