Blonder Tongue Laboratories, Inc. (NYSE Amex:BDR) today announced its sales and results for the second quarter and six months ended June 30, 2011. Net sales for the second quarter 2011 were $7,206,000, compared to $8,266,000 for the second quarter 2010. Net earnings for the second quarter of 2011 were $105,000 or $0.02 per share, compared to $901,000 or $0.15 per share for the comparable period in 2010. Net sales for the six months ended June 30, 2011 were $13,204,000, compared to the $13,860,000 for the six months ended June 30, 2010. Net loss for the six months ended June 30, 2011 was $(211,000) or $(0.03) compared to net earnings of $696,000 or $0.11 for the comparable period in 2010.
The decrease in the Company’s overall performance can be attributed to reduced sales of digital video headend products, which includes the EdgeQAM product subcategory. The expected (and previously disclosed) decrease in EdgeQAM was offset by an increase in other digital video products as well as contract manufactured products. In addition, the Company continues to benefit from the operating expense reductions previously announced in 2010.
For the second quarter of 2011 and 2010, on a comparative period basis, sales of digital video headend products were $2,467,000 (including $522,000 of EdgeQAM product sales) and $3,876,000 ($2,228,000 of EdgeQAM), respectively. For the same comparative periods, sales of contract manufactured products were $939,000 and $584,000, and operating expenses were $2,436,000 and $2,600,000.
Sales of digital video headend products were $4,604,000 ($1,000,000 of EdgeQAM) and $5,618,000 ($3,036,000 of EdgeQAM) in the first six months of 2011 and 2010, respectively. For the same comparative periods, sales of contract manufactured products were $1,563,000 and $797,000, and operating expenses were $4,865,000 and $5,276,000.“Despite the sales decrease from the comparable period in 2010, sequential sales showed a significant increase in the second quarter relative to the first quarter, with sales improving more than 20% and our period net earnings improving by more than $400,000. In our first quarter release I anticipated we would be profitable for the next three quarters and, as noted, we did have a small profit in this second quarter and a healthy EBITDA,” said Chairman and Chief Executive Officer James A. Luksch. “The results relative to the second quarter 2010 were largely due to the expected lower EQAM volume. We released new digital products serving our traditional market and these have been adopted by our top customers, resulting in improved sales to our premier distributors,” he added. Looking to the remainder of the year, Mr. Luksch said, “It is difficult to evaluate the effects of recent negative macro-economic trends, however, key building blocks have been positioned in our long term strategy. We have released new EdgeQAM and digital products to serve the franchise cable market and we have on-going product evaluations and field trials in six of the top MSOs (multi system operators). We are in the game, we may not win every play, but we are cautiously confident that the last two quarters should have increased sales and profits as our new EdgeQAM and digital devices are successful and sales are made to a reasonable portion of the many opportunities that we are now pursuing.”
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