BDR Blonder Tongue Laboratories Inc

Blonder Tongue Laboratories, Inc. (AMEX: "BDR") today announced its sales and earnings for the first quarter ended March 31, 2005. Net sales for the first quarter 2005 increased 8.7% to $9,269,000 from $8,529,000 for the first quarter 2004. The increase in sales is primarily attributed to an increase in capital spending by cable system operators, for the Company's headend and distribution products. Included in net sales are revenues from BDR Broadband of $417,000 and $346,000 for the first three months of 2005 and 2004, respectively. Operating loss for the first quarter 2005 was $603,000 compared to an operating loss of $122,000 for the comparable period of 2004. The operating loss is primarily attributable to an increase in the inventory reserve of $603,000 in the first quarter of 2005. The Company's net loss was $890,000 for the first three months of 2005 compared to $397,000 for the same period in the prior year. Diluted loss per share for the first three months of 2005 was $0.11, compared to a loss of $0.05 for the same period in the prior year. Commenting on the first quarter 2005 results, James A. Luksch, Chairman, Chief Executive Officer said, "It is a pleasure to report what appears to be a rebound in the markets we serve, as demonstrated by the sequential and year-to-year equivalent quarter sales increases that we have experienced. Unfortunately, continued slowness in some product categories required us to again take a significant non-cash charge to our inventory, which adversely impacted the Company's reported performance. Considerable resources are being expended to sell and/or convert this inventory and reverse the recent trend of recurring non-cash charges on the Company's P&L. Sales are improving and further increase in sales momentum and management of slow moving inventory are the primary goals of the Company in 2005." Founded in 1950, Blonder Tongue Laboratories is a leading U.S. designer, manufacturer, and supplier of a comprehensive line of broadband systems equipment and technical engineering services for Voice, Video and Data service providers. With Blonder Tongue's optimized technologies, simplified deployment and qualified technical assistance, the service provider reduces costs, increases customer satisfaction and increases profitability. 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. "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, 2004 (See Item 1: Business and Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors), and other filings with the Securities and Exchange Commission are incorporated herein by reference. The words "believe", "expect", "anticipate", "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. -0- *T Blonder Tongue Laboratories, Inc. Consolidated Summary of Operating Results (in thousands, except per-share data) (unaudited) Three months ended March 31, -------------------------- 2005 2004 -------------------------- Net Sales $9,269 $8,529 Gross Profit 2,527 2,941 Loss from operations (603) (122) Net loss (890) (397) Net loss per share: Basic and diluted ($0.11) ($0.05) Weighted average shares outstanding: Basic and diluted 8,015 7,997 *T -0- *T Consolidated Summary Balance Sheets (in thousands) March 31, December 31, 2005 2004 (unaudited) ------------- --------------- Current assets $16,899 $16,006 Property, plant, and equipment, net 6,086 6,214 Total assets 38,254 38,156 Current liabilities 5,513 5,403 Long-term liabilities 6,708 5,830 Stockholders' equity 26,033 26,923 Total liabilities and stockholders' equity $38,254 $38,156 *T