Blonder Tongue Comments on Outlook for 1998.OLD BRIDGE, N.J.--(BUSINESS WIRE)--June 3, 1998--Blonder Tongue Laboratories, Inc. (AMEX AMEX See: American Stock Exchange :BDR BDR Border BDR Bangladesh Rifles (military forces in Bangladesh) BDR Backup Designated Router (networking) BDR Bombardier (artillery rank) BDR Backup Disaster Recovery ) today announced that it expects earnings per share for 1998 to increase by at least 13 percent over the prior year to $0.83 to $0.90 per share. For the year ended December 31, 1997, Blonder Tongue reported earnings of $0.73 per share (excluding a one-time benefit of $0.04 per share related to the settlement of a terminated contract with Pacific Bell), on revenues of $62.1 million. President and Chief Executive Officer James A. Luksch stated, "Growth in our markets and an increasing contribution from our interdiction INTERDICTION, civil law. A legal restraint upon a person incapable of managing his estate, because of mental incapacity, from signing any deed or doing any act to his own prejudice, without the consent of his curator or interdictor. 2. product line have us looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. 13 to 23 percent earnings improvement to $0.83 to $0.90 per share for 1998. We expect this level of improvement despite a two cent per share decline in first-quarter earnings, which suffered from softer-than-anticipated sales and a lower-margin product mix." Mr. Luksch continued, "Where earnings will ultimately fall depends on a number of factors. If we see the same level of top-line volatility and unfavorable margin mix that affected us in the first quarter, earnings could fall at the lower end of the range. On the other hand, several initiatives are underway to drive our earnings to the upper end, including the integration of the Scientific-Atlanta product line (SMI (1) (Storage Management Initiative) The initiative developed by the SNIA in 2003 to create a single standard interface for storage management technologies used by multiple vendors and networking communities. ) into our operations. The transfer of manufacturing to our Old Bridge, New Jersey facility is on schedule. We expect to have final assembly and testing in place by the end of the month and sub-assembly production operational by early September. In addition to the revenue growth we expect to realize from the SMI product, as we ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale the manufacturing, our production costs should decline, improving operating margins." Mr. Luksch concluded, "These developments in 1998 will help the company solidify its presence in the private cable market while positioning us to increase our penetration in the franchise cable market." Blonder Tongue is a manufacturer of electronics and systems equipment for the franchised and private cable television industries. Its products are used in the acquisition, conversion, distribution, and protection of television signals. Its customers typically provide television services to apartments and condominiums, hotels, motels, schools, hospitals, and prisons. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, 1997 (See Item 1: Business, Item 3: Legal Proceedings, and Item 7: Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. Blonder Tongue's actual results may differ from the anticipated results or other expectations expressed in Blonder Tongue's "forward-looking" statements.
CONTACT: Blonder Tongue Laboratories
James A. Luksch, 732/679-4000
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