Blonder Tongue Discontinues Small Subscriber Based Business.Represents Completion of Non-Core Business Divestitures Under Strategic Plan OLD BRIDGE, N.J. -- 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 on April 10, 2008, its Board of Directors made the decision to cease the operations of its wholly-owned subsidiary, Hybrid Networks, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Hybrid"), and liquidate its assets. The Company plans to wind down the operations of Hybrid by August 1, 2008. Hybrid's business activities consist of the operation of video, high-speed data and/or telephony systems ("Systems") at 4 multi-dwelling unit communities under certain right-of-entry agreements ("ROE Agreements"). As part of the Company's on-going implementation of its strategic plan, management has continued to evaluate the impact and long-term viability of non-core business activities, including the continued operation of the Systems. The decision of the Board of Directors to discontinue Hybrid's operations was based upon such evaluation and the current cash flow and operating losses of Hybrid. Based on this decision, the Company concluded on April 10, 2008 that a non-cash impairment charge in the amount of approximately $400,000 is required to write-off Hybrid's assets, which includes the ROE Agreements and the equipment necessary to operate the Systems, substantially all of which is installed at the applicable property location. As a result of ceasing the operations of Hybrid, the Company expects to make cash expenditures of approximately $50,000 in connection with the early termination of certain contracts and agreements related to the operation of the Systems. The Company expects a loss of revenue of approximately $140,000, an improvement of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of approximately $150,000 and a cash flow improvement of approximately $75,000 all on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis as a result of discontinuing the operation. Commenting on the transaction, James A. Luksch, Chairman and Chief Executive Officer said, "The decision to discontinue Hybrid is the final step in our divestiture of non-core businesses. We continue to be focused on improving operating expenses and profitability." About Blonder Tongue and Hybrid Founded in 1950, Blonder Tongue Laboratories, Inc. has evolved from a manufacturer of electronic equipment for the private cable industry to a principal provider of integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. solutions and technical services to broadband service providers. The Company designs, manufactures, and supplies a comprehensive line of equipment to deliver video (analog & digital), high speed data and voice services over integrated coaxial and fiber optic broadband networks today and over packet based, Internet protocol networks of the future. For more information regarding Blonder Tongue or its products, please visit the Company's Web site at www.blondertongue.com or contact the Company directly at (732) 679-4000. Hybrid Networks, LLC was formed by Blonder Tongue in 2002 for the purpose of acquiring video, data and telephony private cable television systems. Hybrid provides video, high-speed data and telephony services to MDU (1) (Multiple Dwelling Unit) A commercial or residential building with multiple offices or apartments. See BLEC. (2) (Multiply-Divide Unit) A high-speed circuit that performs multiplication and division within the CPU. communities located in New Jersey, Maryland, and Virginia. "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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2007 (See Item 1: Business, Item 1A: Risk Factors 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. The words "believe", "expect", "anticipate", "should", "project", and similar expressions identify 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. |
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