OLD BRIDGE, NJ / March 31, 2022 / Blonder Tongue Laboratories, Inc. (NYSE American:BDR) announced its sales and results for the fourth quarter and year ended December 31, 2021.
Commenting on the Company’s year end and fourth quarter results, Chief Executive Officer Ted Grauch noted, “Although the Company was able to realize positive net earnings for the full year of 2021, the global semiconductor supply chain bottlenecks and supply uncertainties had a significant negative impact on our fourth quarter financial performance, and a number of those supply chain issues have continued into this year. We have been managing through this challenging environment with a combination of product price increases to compensate for raw material premiums, coupled with additional operating cost reductions. Throughout 2021 we continued our investments in product development, focusing on areas that could achieve near-term revenue and income growth. We believe our operating expense management, together with the more modern, higher technology product mix, and recent new product announcements best demonstrates the progress Blonder Tongue Laboratories made during 2021.”
Blonder Tongue Laboratories, Inc. net sales decreased $334,000 or 7.7% to $3,993,000 for the fourth quarter of 2021 from $4,327,000 for the comparable period in 2020. Net loss for the three months ended December 31, 2021 was $(927,000) or $(0.07) per share, compared to $(2,413,000) or $(0.23) per share for the comparable period in 2020.
The decrease in sales is primarily attributable to a decrease in sales of CPE products, DOCSIS data products, analog modulation products and coax distribution products offset in part by an increase in IP video encoder/transcoder products and our NXG IP video signal processing series of products. Sales of CPE products were $23,000 and $1,114,000, DOCSIS data products were $122,000 and $418,000, analog modulation products were $133,000 and $438,000, coax distribution products were $171,000 and $287,000, video encoder/transcoder products were $2,529,000 and $1,381,000 and our NXG series products were $614,000 and $135,000 in the fourth quarter of 2021 and 2020, respectively.
For the year ended December 31, 2021, net sales decreased $625,000 or 3.8% to $15,754,000 in 2021 from $16,379,000 in 2020. Net earnings for the twelve months ended December 31, 2021 was $84,000 or $0.02 per diluted share, compared to a net loss of $(7,474,000) or $(0.76) per share for the comparable period in 2020.
The decrease in sales is primarily attributable to a decrease in sales of CPE products, DOCSIS data products, analog modulation products and coax distribution products offset in part by an increase in IP video encoder/transcoder products and NXG IP video signal processing products. Sales of CPE products were $1,120,000 and $4,165,000, DOCSIS data products were $755,000 and $2,184,000, analog modulation products were $790,000 and $1,274,000, coax distribution products were $1,266,000 and $1,603,000, video encoder/transcoder products were $7,863,000 and $4,245,000 and our NXG series products were $1,924,000 and $705,000 in 2021 and 2020, respectively. The Company experienced a reduction in CPE products during 2021 due to the deemphasis of this product line, which the Company expects to continue into 2022. The Company experienced a reduction in DOCSIS data products due to reduced demand caused by the pandemic as these products are used primarily in the hospitality and assisted living environments. The Company expects sales of these products to improve during 2022. The Company experienced a reduction in analog modulation products due to the continued market shift away from analog modulation solutions. The Company experienced a reduction in coax distribution products due to the reduced demand for legacy products. The Company expects the sales of the analog modulation and coax distribution products to continue to decline in 2022. The Company experienced an increase in video encoder/transcoder products and NXG products as these product lines represent newer products with advanced technologies and higher demand from customers. The Company expects sales of these product lines to remain at 2021 levels or increase in 2022, depending on conditions in the semiconductor supply chain. Although the Company does not expect overall sales to return to pre pandemic levels during 2022, the Company does expect overall sales to be higher during 2022, due to approximately $10,240,000 of sales backlog at December 31, 2021.
The Company’s primary sources of liquidity have been its existing cash balances, cash generated from operations, amounts available under the MidCap Business Credit LLC revolving credit facility (the “MidCap Facility”), amounts available under a subordinated loan facility and cash generated from sales of its common stock, as well as funds made available to the Company through participation in several federal government financial assistance programs implemented pursuant to the Coronavirus Aid, Relief, and Economic Security Act, including the Paycheck Protection Program and the Employee Retention Tax Credit. On a going-forward basis, the Company expects its primary sources of liquidity will be its existing cash balances, cash generated from operations and amounts available under the MidCap Facility. The Company also may seek to raise additional capital through the issuance of shares of common stock or other securities convertible into, or exercisable for, shares of common stock, although the Company cannot provide any assurances that this type of additional financing will be available on reasonable terms, or at all. During 2021, the Company received approximately $700,000 under the subordinated loan facility and approximately $492,000 in net proceeds from sales of common stock. Our ability to continue as a going concern is dependent upon our becoming profitable in the future and having access to sufficient capital to execute our business plan and to meet our payment obligations on our debt financing arrangements and other financial obligations when they become due. The Company had approximately $92,000 and approximately $609,000 availability for borrowing under the MidCap Facility, as of December 31 2021 and 2020, respectively.
The Company’s Annual Report on Form 10-K, which is being filed today, includes an “Explanatory Paragraph-Going Concern” from its independent registered public accounting firm. Although the Company has actively taken steps to address operating expenses and liquidity, there can be no assurance that those actions and others the Company intends to take in the future will be sufficient to address the concerns relating to the “Explanatory Paragraph-Going Concern.”