EXHIBIT 99.1
FOR IMMEDIATE RELEASE: CONTACT: JAMES A. LUKSCH,
- --------------------- CHAIRMAN AND CHIEF
AUGUST 14, 2003 EXECUTIVE OFFICER
(732) 679-4000
BLONDER TONGUE REPORTS SECOND QUARTER 2003 FINANCIAL RESULTS
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OLD BRIDGE, NEW JERSEY, AUGUST 14, 2003 - Blonder Tongue Laboratories, Inc.
(AMEX:BDR) today announced its sales and earnings for the second quarter and six
months ended June 30, 2003.
Net sales for the second quarter 2003 decreased 24% to $8,534,000 from the
$11,257,000 reported for the second quarter 2002. The decrease in net sales is
primarily attributable to a decrease in capital spending by cable system
operators and weak overall economic conditions. As a result, the Company
experienced lower digital product sales. Net sales included approximately
$1,122,000 and $218,000 of interdiction and digital product sales in the second
three months of 2003, compared to approximately $866,000 and $1,172,000 for the
comparable period in 2002. The net loss for the period was $390,000 compared to
net income of $33,000 for the comparable period in 2002. The diluted loss per
share for the second quarter 2003 was $0.05, compared to earnings of $0.01 for
the same period in the prior year.
For the six months ended June 30, 2003, net sales decreased 22.6 % to
$17,136,000 compared to $22,147,000 for the same period in 2002. The net loss
for the period was $1,148,000 compared to $6,670,00 for the comparable period in
2002. The diluted loss per share for the six months ended June 30, 2003 was
$0.15, compared to $0.87 for the same period in the prior year.
The loss for the six months ended June 30, 2002 was a result of a change in
accounting rules, whereby the Company recorded a non-cash charge of $6,886,000
in the first quarter of 2002, to comply with new accounting principles
concerning the accounting treatment of goodwill.
Commenting on the second quarter 2003 results, James A. Luksch, Chief Executive
Officer said, "The rebound anticipated for the second quarter of 2003 is
occurring at a slower pace than was expected at the end of the first quarter. We
have also incurred delays in the anticipated roll out of our new telephony and
data solution products, although we remain optimistic that these new product
offerings will provide material incremental revenues and profits commencing in
the fourth quarter of this year. Our expectation of a transition to a period of
growth in sales and earnings, although delayed, remains strong. Conceptually,
our digital, data and voice triple play offering is being widely embraced by
private cable operators, MSO's and real estate developers as the solution of
choice for multi dwelling units (MDU's). We remain confident that once we begin
to ship commercial quantities of our voice and data products, the growth in
order input will be steady through the rest of this year and accelerate in 2004.
Providing guidance for the full year of 2003 is a difficult task. The Company
traditionally ships more than 70% of its orders in the same month the orders are
received, rendering sales forecasting a difficult task depending on bidding
activity, verbal customer commitments and trend analyses. In light of our
disappointing performance in the second quarter and for the first six months of
the year, our existing guidance for 2003 is too aggressive, but by how much is
not known at this time. Sales and profits are
expected to improve in the third and fourth quarters, but the level of
improvement is impossible to predict at this time. Taking into account our
performance thus far this year, it is more appropriate to provide a range of
guidance rather than specific sales and profit projections. We anticipate sales
will be between $40 and $50 million in 2003, with net profit in the range of
breakeven to $0.15 per share.
Blonder Tongue Laboratories is a designer, manufacturer and supplier of a
comprehensive line of electronics and systems equipment for the franchised and
private cable television industries. Founded in 1950, Blonder Tongue has grown
to be one of the leaders in cable television equipment manufacturing. For more
information regarding Blonder Tongue or its products, please visit the Company's
Internet 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, 2002 (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.
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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,
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2003 2002 2003 2002
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Net sales $ 8,534 $ 11,257 $ 17,136 $ 22,147
Gross profit 2,675 3,051 4,834 6,367
Earnings (loss) from operations (353) 330 (1,304) 834
Net earnings (loss) (390) 33 (1,148) (6,670)
Net earnings (loss) per share:
Basic $(0.05) $0.01 $(0.15) $(0.87)
Diluted $(0.05) $0.01 $(0.15) $(0.87)
Weighted average shares outstanding:
Basic 7,500 7,613 7,519 7,613
Diluted 7,500 7,630 7,519 7,613
CONSOLIDATED SUMMARY BALANCE SHEETS
(in thousands)
JUNE 30, 2003 DECEMBER 31, 2002
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(unaudited)
Current assets $32,199 $34,774
Property, plant, and equipment, net 6,956 6,831
Total assets 49,610 52,002
Current liabilities 17,213 4,457
Long-term liabilities 394 14,278
Stockholders' equity 32,003 33,267
Total liabilities and stockholders' equity $49,610 $52,002