EXHIBIT 99.1
FOR IMMEDIATE RELEASE: Contact: James A. Luksch,
- --------------------- Chairman and Chief
November 10, 2003 Executive Officer
(732) 679-4000
BLONDER TONGUE REPORTS THIRD QUARTER 2003 FINANCIAL RESULTS
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Old Bridge, New Jersey, November 10, 2003 - Blonder Tongue Laboratories, Inc.
(AMEX:BDR) today announced its sales and earnings for the third quarter and nine
months ended September 30, 2003.
Net sales for the third quarter 2003 decreased 30.2 % to $9,195,000 from the
$13,171,000 reported for the third quarter 2002. The decrease in net sales is
primarily attributable to a decrease in capital spending by cable system
operators and continuing weak overall economic conditions. As a result, the
Company experienced lower digital product sales. Net sales included
approximately $999,000 and $874,000 of interdiction and digital product sales in
the third three months of 2003, compared to approximately $770,000 and
$1,780,000 for the comparable period in 2002. The net loss for the period was
$65,000 compared to net income of $536,000 for the comparable period in 2002.
The diluted loss per share for the third quarter 2003 was $0.01, compared to
earnings of $0.07 for the same period in the prior year.
For the nine months ended September 30, 2003, net sales decreased 25.5 % to
$26,331,000 compared to $35,318,000 for the same period in 2002. The net loss
for the period was $1,213,000 compared to a net loss of $6,134,000 for the
comparable period in 2002. The diluted loss per share for the nine months ended
September 30, 2003 was $0.16, compared to a diluted loss per share of $0.80 for
the same period in the prior year.
The loss for the nine months ended September 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 third quarter 2003 results, James A. Luksch, Chief Executive
Officer said, "Blonder Tongue's third quarter performance though below
expectations demonstrates an improvement over prior quarters of 2003. This
improvement was achieved with no large orders or significant sales in the
product areas expected to fuel more rapid growth in future periods. In addition
to achieving the highest quarterly sales of the year, we have also reduced our
operating expenses $333,000 per quarter as compared to first quarter 2003.
As stated at the end of the second quarter, future growth will be obtained
through sales of the Company's triple play offering of voice, data and video,
bundled products. Recent increases in the availability of high definition and
ethnic programming should increase deployment of the Company's transcoder and
high definition TV processors and provide an additional increase in sales.
The number of large applications and resultant quote activity for the new
product groups and a renewed increase in quotes for the Company's addressable
tap and interdiction products give us cause to anticipate growth for 2004.
It is appropriate and consistent with our current performance, to restate
guidance for 2003 to $34 to $40 million in sales and a net loss per share of
$(0.19) to $(0.04) per share and to provided preliminary guidance for 2004 of
net sales of $45 to $60 million and earnings of $0.15 to $0.60 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
-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,
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2003 2002 2003 2002
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Net sales $ 9,195 $ 13,171 $ 26,331 $ 35,318
Gross profit 2,965 3,777 7,799 10,144
Earnings (loss) from operations 188 1,218 (1,116) 2,052
Net earnings (loss) (65) 536 (1,213) (6,134)
Net earnings (loss) per share:
Basic $ (0.01) $ 0.07 $ (0.16) $ (0.80)
Diluted $ (0.01) $ 0.07 $ (0.16) $ (0.80)
Weighted average shares outstanding:
Basic 7,577 7,608 7,539 7,611
Diluted 7,577 7,613 7,539 7,611
Consolidated Summary Balance Sheets
(in thousands)
September 30, December 31,
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2003 2002
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(unaudited)
Current assets $31,793 $34,774
Property, plant, and equipment, net 6,837 6,831
Total assets 49,954 52,002
Current liabilities 16,630 4,457
Long-term liabilities 356 14,278
Stockholders' equity 32,968 33,267
Total liabilities and stockholders' equity $49,954 $52,002