Exhibit EX-99.1
[BLONDER TONGUE LABORATORIES, INC. 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 2005 THIRD QUARTER RESULTS
AND REALIGNMENT OF IT'S STRATEGIC PLAN
OLD BRIDGE, NEW JERSEY, November 14, 2005 - Blonder Tongue Laboratories, Inc.
(AMEX: "BDR"), today announced its financial results for the third quarter ended
September 30, 2005. The Company also announced that it will record an increase
in inventory reserve in the third quarter as part of an overall strategic plan
to realign products and services to meet anticipated future demands in the
marketplace.
Blonder Tongue is undertaking a major plan to realign products and services,
streamline manufacturing capabilities, and expand sales channels internationally
and domestically. These initiatives were the subject of previous press releases
announcing new products such as the Cable Modem Termination System (CMTS) and
the new Agile QAM Modulator. Also reported was the latest initiative to begin
manufacturing in the Peoples Republic of China. These initiatives are intended
to respond to the significant changes taking place in communications technology
as the shift from analog to digital accelerates and as the use of fiber and
applications relying on VoIP expand, in future deployments for cable television,
high speed data and voice in the US and internationally. In anticipation of this
realignment, the Company has increased its inventory reserve to reflect the
anticipated shift in product mix going forward. "The shift in products is
evident in the sales of our Digital products. Third quarter 2005 Digital sales
were $1,324,000 compared to $696,000 in the comparable period in 2004." stated
Emily Nikoo, Vice President of Marketing.
Net sales for the third quarter 2005 were $9,666,000, as compared to net sales
of $11,215,000 reported in the third quarter 2004. The decrease in sales is
primarily attributed to lower headend product sales. In addition, net sales for
the third three months of 2004 included the recognition of $458,000 of revenues
from the note receivable obtained by the Company in connection with a sale of
goods to a customer in September 2002.
Net loss on a GAAP basis for the third quarter 2005 was $(3,516,000), or ($0.44)
per share, compared to a net income of $406,000 or $0.05 per share for the
comparable period in 2004. The loss in 2005 includes an increase to the
inventory reserve of $3,494,000 while the comparable period in 2004 had no
increase in inventory reserve. Excluding the inventory reserve adjustment, the
third quarter net loss would have been ($22,000) in 2005 compared to net income
of $406,000 for the same period in 2004. "This non-cash charge will allow us to
focus our efforts on the more current product offerings. Along with our new
credit facility with National City Business Credit, we believe we are taking the
appropriate steps to further solidify the Company's financial position."
commented Eric Skolnik, Chief Financial Officer.
Commenting on the third quarter 2005 results, James A. Luksch, Chief Executive
Officer, said, "The joint venture in China, the new product offerings and our
new credit facility, set the stage for Blonder Tongue to be more dynamic and
innovative. Blonder Tongue will continue to provide products employing the
latest technology, with the highest performance to cost ratio in the industry.
Our investment in a facility in China that is within our control, will allow us
to deliver the superior quality our customers expect while simultaneously
increasing gross margins and international sales. This effort may also present
us with opportunities to acquire strategic additions to our existing product
lines."
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/A 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 Risk Factors), 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.
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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,
----------------------- -----------------------
2005 2004 2005 2004
Net sales $9,666 $11,215 $28,343 $30,661
Gross profit (loss) (53) 3,580 5,333 9,601
Earnings (loss) from operations (3,271) 660 (4,215) 785
Net earnings (loss) (3,516) 406 (5,047) 245
Net earnings (loss) per share:
Basic $(0.44) $0.05 $(0.63) $0.03
$(0.44) $0.05 $(0.63) $0.03
Diluted
Weighted average shares outstanding:
Basic 8,015 8,002 8,015 7,995
Diluted 8,015 8,026 8,015 8,033
Consolidated Summary Balance Sheets
(in thousands)
September 30, 2005 December 31, 2004
(unaudited)
Current assets $15,871 $16,006
Property, plant, and equipment, net 6,199 6,214
Total assets 32,576 38,156
Current liabilities 8,157 5,403
Long-term liabilities 2,543 5,830
Stockholders' equity 21,876 26,923
Total liabilities and
stockholders' equity $32,576 $38,156
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