Blonder Tongue Posts Record 1997 Fourth-Quarter and Year-End Results Full-Year Net Earnings Rise 57% on 27% Higher Sales.OLD BRIDGE, N.J.--(BUSINESS WIRE)--Feb. 19, 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 record sales and net earnings for the fourth quarter and full year that ended December 31, 1997. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the 1997 three-month period set a fourth-quarter record, rising 24% to $15,476,000 from $12,443,000 for the fourth quarter of 1996. Higher sales of the company's 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. and microwave products complemented expanding head-end sales to drive growth for the quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $2,881,000 increased 31% from $2,200,000 for the comparable period last year. Net earnings reached a fourth-quarter record $1,676,000, increasing 36% from $1,233,000 for the fourth quarter of 1996. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net earnings per share for the 1997 fourth quarter were $0.20 compared with $0.15 for the same period in the prior year. "We continue to be pleased with the growth we are seeing across product lines," commented James A. Luksch, Blonder Tongue's Chairman, President, and Chief Executive Officer. "Sales of head-end, microwave, signal distribution, and interdiction products all experienced significant growth in the quarter. Interdiction sales continue to 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 , and with the increased volume, interdiction margins are slowly improving." For the full year, net sales rose 27% to a record $62,057,000 from $48,862,000 for 1996. Gross profit fell slightly to 36.1% from 37.3% as interdiction products accounted for a larger portion of net sales. Operating income jumped 47%, to $10,509,000 from $7,142,000 for 1996, as selling, general, and administrative expenses increased nominally compared to the growth in sales. Net earnings rose 65% to $6,414,000, or $0.77 per share (diluted), from $3,883,000, or $0.47 per share (diluted), for the comparable period last year. Net earnings for 1997 include a one-time benefit of $535,000 ($321,000, or $0.04 per share (diluted), after tax) related to the settlement of a terminated contract with Pacific Bell. Excluding the one-time benefit, net earnings increased 57% to $6,093,000, or $0.73 per share (diluted). "Underlying our record financial results are a number of fundamental improvements that strengthen our business going forward," continued Mr. Luksch. "Our growth in 1997 was broad-based. We went from having two $3 million-customers to more than seven. We tripled our business with private cable operators while growing our lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a , private cable distribution, and domestic franchise cable distribution businesses. For the year, we expanded sales in every major product category, with particular growth in interdiction, microwave, and satellite receiver products. These improvements reflect our ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the changes brought about by the 1996 Telecommunications Act There are several laws named the Telecommunications Act
Mr. Luksch concluded, "We are gaining momentum. Already in 1998, business is off to an outstanding start, and developments in products and marketing have us strongly optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op for expanding growth in earnings as we move toward another record year." 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 Motels may refer to any of the following:
"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, 1996 (See Item 1: Business, Item 3: Legal Proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , 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. -0-
Blonder Tongue Laboratories
Consolidated Summary of Operating Results
(in thousands except share data)
Three months ended
December 31,
1997 1996
Net sales $15,476 $12,443
Gross profit 6,191 4,732
Earnings from operations 2,881 2,200
Net earnings 1,676 1,233
Net earnings per share:
Basic $ 0.20 $ 0.15
Diluted $ 0.20 $ 0.15
Weighted average shares outstanding:
Basic 8,245 8,182
Diluted 8,505 8,305
Year ended
December 31,
1997 1996
Net sales $62,057 $48,862
Gross profit 22,401 18,249
Earnings from operations 10,509 7,142
Net earnings 6,414 3,883
Net earnings per share:
Basic $ 0.78 $ 0.48
Diluted $ 0.77 $ 0.47
Weighted average shares outstanding:
Basic 8,227 8,144
Diluted 8,375 8,300
Blonder Tongue Laboratories
Consolidated Summary Balance Sheets
(in thousands)
December 31, December 31,
1997 1996
Current assets $32,933 $27,292
Property, plant & equipment, net 7,721 7,161
Total assets 42,272 36,165
Current liabilities 6,877 4,277
Long-term liabilities 3,600 6,312
Stockholders' equity 31,795 25,576
Total liabilities and stockholders'
equity $42,272 $36,165
CONTACT: Blonder Tongue Laboratories James A. Luksch, 732/679-4000 |
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