Blonder Tongue Discontinues Small Subscriber Based Business
April 18 2008 - 4:55PM
Business Wire
Blonder Tongue Laboratories, Inc. (AMEX: �BDR�) 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 (�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 of
approximately $150,000 and a cash flow improvement of approximately
$75,000 all on an annualized 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 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 communities located in New Jersey,
Maryland, and Virginia. �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, 2007 (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. Blonder Tongue�s actual results may differ from the
anticipated results or other expectations expressed in Blonder
Tongue�s �forward-looking� statements.
Blonder Tongue Laborator... (AMEX:BDR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Blonder Tongue Laborator... (AMEX:BDR)
Historical Stock Chart
From Jul 2023 to Jul 2024