EXHIBIT 99.1
[LOGO] One Jake Brown Road
BLONDER Old Bridge, NJ 08857-1000
TONGUE (732) 679-4000 Fax (732) 679-4353
LABORATORIES, INC. www.blondertongue.com
For Immediate Release: Contact: James A. Luksch
- ---------------------- Chairman and
March 31, 2004 Chief Executive Officer
(732) 679-4000
BLONDER TONGUE REPORTS 2003 YEAR-END AND FOURTH QUARTER RESULTS
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OLD BRIDGE, NEW JERSEY, March 31, 2004 - Blonder Tongue Laboratories, Inc.
(AMEX: "BDR") today announced its sales and earnings for the fourth quarter and
full year ended December 31, 2003
Net sales for fiscal year 2003 were $35,437,000 compared to the $46,951,000
reported in fiscal year 2002. The decrease in net sales is primarily attributed
to a decrease in capital spending by cable system operators and generally weak
economic conditions. The decrease in capital spending by cable systems operators
was in part the result of the bankruptcy of WSNET, which had been the leading
provider of programming to the private cable industry. As a result of this
event, demand of the Company's digital products, particularly its Motorola
set-top box and QQQT Transcoder line, were adversely affected. Digital product
sales were $3,312,000 in 2003 compared to $6,265,000 in 2002. Included in net
sales are revenues from BDR Broadband, our private cable system, of $1,094,00
and $250,000 in 2003 and 2002, respectively. The Company's gross profit margin
decreased to 26.8% from 27.2% in the prior year due to an increase in the
inventory reserve of $1,576,000 in 2003 as compared to an increase in the
inventory reserve of $500,000 in 2002, offset by a higher portion of sales in
2003 being comprised of higher margin products. Earnings from operations were a
loss of $2,181,000 as compared to income of $1,724,000 reported in 2002. The
reduction in operating income was attributable to reduced sales, an increase in
the inventory reserve and an increase in general and administrative expenses of
$1,000,000 related to BDR Broadband. Earnings before cumulative effect of change
in accounting principle was a loss of $2,749,000 or $0.36 loss per share
compared to income of $429,000 or $0.06 per share for the comparable period in
2002. In connection with a change in accounting rule relating to the treatment
of goodwill as prescribed by Statement of Financial Accounting Standards No.
142, the Company recorded a one-time non-cash non-operating charge of $6,886,000
in the first quarter of 2002, resulting in a net loss of $6,457,000 or $0.84 per
share in 2002.
Net sales for the fourth quarter 2003 were $9,106,000 compared to the
$11,633,000 reported for the fourth quarter of 2002. The Company had an
operating loss of $1,065,000 for the period compared to a $328,000 operating
loss for the comparable period of 2002. There was a net loss of $1,536,000 for
the fourth quarter of 2003, compared to a $323,000 net loss reported for the
fourth quarter of 2002. Diluted net loss per share for the fourth quarter of
2003 was $0.19, compared with diluted net loss per share for the fourth quarter
of 2002 of $0.04.
James A. Luksch, Chairman and Chief Executive Officer commented, "The Company's
financial performance for the year 2003 was disappointing, although the loss for
the year was dominated by an increase in our inventory reserve. Given the
substantial decrease in our sales volume, and taking into account the increase
of the inventory reserve, operating performance of the Company was reasonable.
During 2003, however, we undertook a thorough and critical evaluation of the
marketplace and ourselves, and have used what we have learned to chart a clear
path for the Company to increase sales and profits." Mr. Luksch continued, "We
are now in the implementation phase of these efforts and anticipate seeing
concrete results in the second half of the year. Our Triple Play offering of
Video, Data and Voice products are being well received. Key customers have
expressed strong interest in our new products, and recent events pressuring
operators to block channels as requested by consumers, should reinvigorate
customer interest in the Company's addressable products. In summary, there is
more good news in Blonder Tongue's future than the bad news. The market and
products are there, and we are continually adapting to meet the market's
demands."
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 offers a
comprehensive product line and 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, 2003 (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.
Blonder Tongue Laboratories, Inc.
Consolidated Summary of Operating Results
(in thousands, except per-share data)
Three months ended Twelve months ended
December 31, December 31,
(unaudited)
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2003 2002 2003 2002
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Net Sales $ 9,106 $ 11,633 $ 35,437 $ 46,951
Gross Profit 1,690 2,612 9,489 12,756
Earnings (loss) from operations (1,065) (328) (2,181) 1,724
Net loss (1,536) (323) (2,749) (6,457)
Net loss per share:
Basic and diluted $ (0.19) $ (0.04) $ (0.36) $ (0.84)
Weighted average shares outstanding:
Basic and diluted 7,995 7,613 7,654 7,604
Consolidated Summary Balance Sheets
(in thousands)
Dec. 31, Dec. 31,
2003 2002
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Current assets $31,376 $34,774
Property, plant and equipment, net 6,652 6,831
Total assets 47,990 52,002
Current liabilities 6,305 4,457
Long-term liabilities 9,745 14,278
Stockholders' equity 31,940 33,267
Total liabilities and stockholders' Equity $47,990 $52,002
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