OLD BRIDGE, NJ / November 14, 2018 / Blonder Tongue Laboratories, Inc. (NYSE American: BDR) announced its sales and results for the third quarter and nine months ended September 30, 2018.
Net sales increased $50,000 or 0.9% to $5,626,000 for the third quarter of 2018 from $5,576,000 for the comparable period in 2017. Net loss for the three months ended September 30, 2018 was $(199,000) or $(0.02) per share, compared to $(153,000) or $(0.02) per share for the comparable period in 2017.
The increase in sales is primarily attributed to an increase in sales of digital video headend products offset in part by a decrease in sales of data products. Sales of digital video headend products were $2,814,000 and $2,100,000, and data products were $1,112,000 and $1,782,000 in the third three months of 2018 and 2017, respectively.
For the nine-month period ended September 30, net sales decreased $1,447,000, or 8.2%, to $16,266,000 in 2018 from $17,713,000 in 2017. Net loss for the nine months ended September 30, 2018 was $(597,000) or $(0.07) per share, compared to $(640,000) or $(0.08) per share for the comparable period in 2017.
The decrease in sales is primarily attributed to a decrease in sales of data products, analog video head products and HFC distribution products offset in part by an increase in digital video headend products. Sales of data products were $3,566,000 and $5,168,000, analog video headend products were $1,234,000 and $1,360,000, HFC distribution products were $2,345,000 and $2,545,000 and digital video headend products were $7,899,000 and $7,330,000, in the first nine months of 2018 and 2017, respectively.
Commenting on the third quarter results, Chief Executive Officer Robert J. Pallé noted, “We were reasonably pleased with the slight increase in third quarter revenues, however, we are concerned regarding revenues for the remainder of 2018. As an update to the sale of the Old Bridge property, although the completion of the sale has been delayed, we received an initial deposit of $500,000, in anticipation that the transaction will close as planned in January 2019. Also, as was planned, we experienced higher operating expenses than prior periods due to the new product introduction phase of our NeXgen Gateway, and upgraded DOCSIS 3.1 Fiber Optic product lines. Both of these introductions were well received at the SCTE Cable-Tec Expo in October, and are anticipated to provide revenue growth as 2019 unfolds.”
Conference Call Reminder
Details of the live teleconference:
- Date: Wednesday, November 14, 2018
- Time: 11:00 a.m. Eastern Time (10:00 a.m. CT, 8:00 a.m. PT)
- Investor Dial-in (US & Canada Toll-Free): 877-407-8033
The audio replay will be available under Investor Related Information on the Blonder Tongue Investor Relations webpage.
About Blonder Tongue
Blonder Tongue Laboratories, Inc. together with R.L. Drake Holdings, LLC – its wholly owned subsidiary – offer customers more than 130 years of combined engineering and manufacturing excellence with solid histories of delivering reliable, quality products. As a leader in the field of Cable Television Communications, the Company provides system operators and integrators serving the cable, broadcast, satellite, IPTV, institutional and professional video markets with comprehensive solutions for the provision of content contribution, distribution and video delivery to homes and businesses. The Company designs, manufactures, sells and supports an equipment portfolio of standard and high definition digital video solutions, as well as core analog video and high-speed data solutions for distribution over coax, fiber and IP networks. Additional information on the Company and its products can be found at www.blondertongue.com, and www.rldrake.com.
“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, 2017 (See Item 1: Business, Item 1A: Risk Factors, Item 3: Legal Proceedings 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”, “target”, “intend”, “plan”, “seek”, “estimate”, “endeavor”, “should”, “could”, “may” and similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to projections for our future financial performance, our anticipated growth trends in our business and other characterizations of future events or circumstances are 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.
Contacts
Eric Skolnik
Chief Financial Officer
eskolnik@blondertongue.com
(732) 679-4000
Robert J. Pallé
Chief Executive Officer & President
bpalle@blondertongue.com
(732) 679-4000
Blonder Tongue Laboratories, Inc.
Condensed Consolidated Summary of Operating Results
(in thousands, except per share data)
| (unaudited) | ||||
|---|---|---|---|---|
| Three months ended September 30, |
Nine months ended September 30, |
|||
| 2018 | 2017 | 2018 | 2017 | |
| Net sales | $5,626 | $5,576 | $16,266 | $17,713 |
| Gross profit | 2,413 | 2,177 | 6,827 | 6,703 |
| (Loss) earnings from operations | (44) | (15) | (174) | 83 |
| Net loss | $(199) | $(153) | $(597) | $(640) |
| Basic and diluted net loss per share | $(0.02) | $(0.02) | $(0.07) | $(0.08) |
| Basic and diluted weighted average shares outstanding | 9,270 | 8,212 | 8,836 | 8,181 |
Blonder Tongue Laboratories, Inc
Condensed Consolidated Summary Balance Sheets
(in thousands)
| (unaudited) | ||
|---|---|---|
| September 30, 2018 |
December 31, 2017 |
|
| Current assets | $9,547 | $8,950 |
| Property, plant and equipment, net | 2,958 | 3,106 |
| Total assets | 15,378 | 15,174 |
| Current liabilities | 4,678 | 3,939 |
| Long-term liabilities | 3,019 | 3,822 |
| Stockholders’ equity | 7,681 | 7,413 |
| Total liabilities and stockholders’ equity | $15,378 | $15,174 |