BDR Blonder Tongue Laboratories Inc

Blonder Tongue Laboratories, Inc. (AMEX: BDR) today reported net sales of $10,012,000 for the second quarter 2006, a 6.4 percent increase over net sales of $9,408,000 reported in the second quarter 2005. The additional sales are attributed to an overall increase in core headend, distribution and fiber equipment as well as an increase in digital, high definition and interdiction product sales. Sales of digital and high definition products were $1,323,000 and $1,108,000 and sales of interdiction products were $650,000 and $500,000 in the second quarter of 2006 and 2005, respectively. Net loss for the second quarter 2006 was $404,000, or ($0.05) per share, compared to a net loss of $641,000 or ($0.08) per share for the comparable period in 2005. Net loss for the six months ended June 30, 2006 was $212,000, or ($0.03) per share, compared to a net loss of $1,531,000 or ($0.19) per share for the comparable period in 2005. Commenting on the second quarter 2006 results, James A. Luksch, Chief Executive Officer, said, "The comparable quarter-to-quarter sales improvement is indicative of the continued long term progress of our new product offerings." Mr. Luksch continued, "We are addressing the disappointing earnings through, among other things, the elimination of certain non-core business units that adversely affect our financial performance. We recently disposed of our interest in Blonder Tongue Telephone and, as reported in the last several days, have announced our intention to divest BDR Broadband, our Texas-based private cable system. We anticipate that the divesture of these two businesses should result in approximately a $600,000 improvement to our net income on an annual basis." 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 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. "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, 2005 (See Item 1: Business, Item 1A: Risk Factors and Item 7: Management's Discussion and Analysis 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. There can be no assurance that Blonder Tongue will be successful in its efforts to sell BDR Broadband. 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 Six months ended June 30, June 30, ------------------------------------ 2006 2005 2006 2005 ------------------------------------ Net sales $10,012 $9,408 $20,399 $18,677 Gross profit 3,347 2,859 6,917 5,386 Earnings (loss) from operations (170) (341) 267 (944) Net earnings (loss) (404) (641) (212) (1,531) Net earnings (loss) per share: Basic $(0.05) $(0.08) $(0.03) $(0.19) Diluted $(0.05) $(0.08) $(0.03) $(0.19) Weighted average shares outstanding: Basic 8,010 8,015 8,013 8,015 Diluted 8,010 8,015 8,013 8,015 Consolidated Summary Balance Sheets (in thousands) June 30, 2006 December 31, 2005 (unaudited) ------------- ----------------- Current assets $15,076 $15,144 Property, plant, and equipment, net 5,965 6,184 Total assets 31,291 32,864 Current liabilities 7,613 8,036 Long-term liabilities 3,193 3,329 Stockholders' equity 20,485 21,499 Total liabilities and stockholders' equity $31,291 $32,864 *T