Blonder Tongue Completes Purchase of Interdiction Business from Scientific-Atlanta.OLD BRIDGE, N.J.--(BUSINESS WIRE)--March 27, 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 has completed the previously announced purchase of the assets and technology rights to Scientific-Atlanta's (NYSE NYSE See: New York Stock Exchange :SFA See sales force automation. SFA - Sales Force Automation ) 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. The business, which generated approximately $16 million in revenues for the prior twelve-month period, was acquired for approximately $20 million, consisting of $19 million in cash, approximately $1 million (68,000 shares) of Blonder Tongue common stock, a warrant to purchase up to 150,000 additional shares at an exercise price of $14.25, and the assumption of certain liabilities of the interdiction business. Blonder Tongue expects to transfer the production of the acquired interdiction line to its production facility in Old Bridge, New Jersey over the next several months. During the transition period, Scientific-Atlanta will continue to manufacture the products under contract to Blonder Tongue. "With this acquisition, we now offer interdiction solutions for application in the CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. environment as well as the private cable environment," commented James A. Luksch, President and Chief Executive Officer of Blonder Tongue. "This acquisition also gives us the opportunity to build upon the newly acquired customer relationships in franchised cable to accelerate our penetration into this exciting segment of the market, which has enormous potential for all of our products." For the year that ended December 31, 1997, Blonder Tongue reported record net earnings of $6.4 million, or $0.77 per share (diluted), on sales of $62.0 million. Blonder Tongue (AMEX:BDR) 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" 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, 1996 (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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