Blonder Tongue Reports Third Quarter 2020 Results
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Blonder Tongue Reports Third Quarter 2020 Results

Wednesday, November 11, 2020 7:56 AM
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OLD BRIDGE, NJ / ACCESSWIRE / November 11, 2020 / Blonder Tongue Laboratories, Inc. (NYSE American:BDR) announced its sales and results for the third quarter and nine months ended September 30, 2020.

Net sales decreased $1,107,000 or 21.0% to $4,171,000 for the third quarter of 2020 from $5,278,000 for the comparable period in 2019. Net loss for the three months ended September 30, 2020 was $(1,787,000) or $(0.18) per diluted share, compared to $(1,334,000) or $(0.14) per diluted share for the comparable period in 2019.

The decrease in sales is primarily attributable to a decrease in sales of digital video headend products, DOCSIS data products and contract manufacturing products offset by a sales increase in new transcoder products. Sales of digital video headend products were $801,000 and $1,292,000, DOCSIS data products were $235,000 and $884,000, contract manufacturing products were $28,000 and $319,000 and transcoder products were $543,000 and zero in the third three months of 2020 and 2019, respectively.

For the nine months ended September 30, 2020, net sales decreased $2,745,000 or 18.6% to $12,052,000 in 2020 from $14,797,000 for the comparable period in 2019. Net loss for the nine months ended September 30, 2020 was $(5,061,000) or $(0.52) per diluted share, compared to net earnings of $3,100,000 or $0.31 per diluted share for the comparable period in 2019. The decrease in net earnings for the first nine months of 2020, relative to the first nine months of 2019, is primarily driven by the $7,175,000 gain recognized in the first quarter of 2019, upon the consummation of the sale and leaseback transaction of our headquarters facility in Old Bridge New Jersey.

The decrease in sales is primarily attributable to a decrease in sales of digital video headend products, contract manufacturing products and analog video headend products offset by an increase in sales of transcoder products and CPE products. Sales of digital video headend products were $2,603,000 and $5,482,000, contract manufactured products were $ 101,000 and $393,000, analog video products were $838,000 and $1,249,000, transcoder products were $937,000 and $33,000 and CPE products were $3,051,000 and $2,691,000 in the first nine months of 2020 and 2019, respectively.

Commenting on the third-quarter results, Chief Executive Officer Ted Grauch noted, "Our 3rd Quarter was dominated by the continuing effects of the COVID pandemic. This included a very difficult July, as COVID cases increased in late June through July across a broad area of the US, followed by a slow but steady and encouraging market improvement through August, September and into October. Our status as an essential business supplying critical telecommunications infrastructure to Cable, Telco, Municipal Fiber Optic and other service providers, has allowed us to continue our sales, service and manufacturing operations throughout the COVID-19 pandemic. Despite this status, we have found over the last eight months that our industry and our market opportunities have been very elastic and have adjusted quickly, both positively and negatively, to the status of the specific changes of virus impact in the general population, month by month. The Company responded in Q3 with a significant temporary shutdown of our factory manufacturing operations, as well as continued adjustments to our operating expenses, with actions targeted to achieve short-term as well as long-term benefits. We continue to analyze and make incremental operational cost reductions in parallel with our strategic R&D focus on completing and releasing new products and product enhancements in an effort to grow our top line. An encouraging element of this strategy has been the Q2 and Q3 growth of our new ‘Clearview' video transcoder and encoder product line referenced in our results. At this point we are focused on creating market awareness of our new products and product enhancements so that we can take advantage of improving market conditions that will occur as the post-COVID economy recovers. The Company's CPE products continued to see a steady and improving market through the last quarter, but we do not expect any material improvement in overall financial performance associated with our CPE product lines until 2021."

Conference Call Reminder
Details of the live teleconference:
Date: Wednesday, November 11, 2020
Time: 11:00 a.m. Eastern Time (10:00 a.m. CT, 8:00 a.m. PT)
Investor Dial-in (US & Canada Toll-Free): 844-602-0380
The audio replay will be available under Investor Related Information on the Blonder Tongue Investor Relations webpage.

About Blonder Tongue
Blonder Tongue Laboratories, Inc. is the oldest designer and manufacturer of telecommunications and cable television video transmission technology in the USA. The majority of our products continue to be designed and built in our state-of-the-art New Jersey facility, which has been the Company's home for more than 50 years. Blonder Tongue Labs offers U.S.-based engineering and manufacturing excellence with an industry reputation for delivering ultra-high reliability products. As a leader in cable television system design, the Company provides service operators and systems integrators with comprehensive solutions for the management and distribution of digital video, IPTV and high-speed data services, as well as RF broadband distribution over fiber, IP, and Coax networks for homes and businesses. Additional information on the Company and its products can be found at www.blondertongue.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, 2019 (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
[email protected]
(732) 679-4000

Ted Grauch
Chief Executive Officer
[email protected]
(732) 679-4000

Blonder Tongue Laboratories, Inc.
Condensed Consolidated Summary of Operating Results

(unaudited, in thousands, except per share data)

 
  Three months ended     Nine months ended  
 
  September 30,     September 30,  
 
  2020     2019     2020     2019  
 
                       
Net sales
  4,171     5,278     12,052     14,797  
Gross profit
    735       1,531       2,523       4,627  
(Loss) earnings from operations
    (1,682 )     (1,283 )     (4,809 )     3,280  
Net (loss) earnings
  (1,787 )   (1,334 )   (5,061 )   3,100  
Basic net (loss) earnings per share
  (0.18 )   (0.14 )   (0.52 )   0.32  
Diluted net (loss) earnings per share
  (0.18 )   (0.14 )   (0.52 )   0.31  
Basic weighted average shares outstanding
    9,771       9,631       9,767       9,583  
Diluted weighted average shares outstanding
    9,771       9,631       9,767       9,971  

Blonder Tongue Laboratories, Inc
Condensed Consolidated Summary Balance Sheets

(in thousands)

 
  (unaudited)        
 
 
September
30,
2020
   
December 31,
2019
 
 
           
Current assets
  8,201     12,174  
Property, plant and equipment, net
    437       392  
Total assets
    13,536       18,347  
Current liabilities
    6,205       8,369  
Long-term liabilities
    4,717       2,615  
Stockholders' equity
    2,614       7,363  
 
               
Total liabilities and stockholders' equity
  13,536     18,347  

SOURCE: Blonder Tongue Laboratories, Inc.

Blonder Tongue Laboratories, Inc.
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