Blonder Tongue Laboratories, Inc.
(NYSE MKT:BDR) today announced its sales and results for the first quarter ended March 31, 2012.
Net sales increased $510,000, or 8.5%, to $6,508,000 in the first three months of 2012 from $5,998,000 in the first three months of 2011. The increase is primarily attributed to an increase in sales of digital video headend products and HFC distribution products. Sales of digital video headend products were $2,633,000 and $2,137,000 and HFC distribution products were $1,182,000 and $972,000 in the first three months of 2012 and 2011, respectively. The Company has experienced and expects to continue to see a shift in product mix from analog products to digital products. The previously announced Drake acquisition contributed $1,401,000 to net sales for the first three months of 2012.
Net loss was $(1,480,000) or $(0.24) per share for the first three months of 2012 compared to a net loss of $(316,000) or $(0.05) per share for the corresponding period of 2011.
Commenting on the first quarter 2012, Chairman and Chief Executive Officer James A. Luksch noted, “While our first quarter is historically a weak quarter, the first quarter of 2012 was significantly worse than recent previous first quarters. Net sales excluding Drake were actually 14.9% lower than 2011 and the net effect of the Drake acquisition on the first quarter (taking into account the contribution of Drake net sales and income as well as non-recurring transaction costs incurred by the Company in connection with the acquisition), increased our loss for the period by approximately $300,000. We also recognized more than a $100,000 increase in our inventory reserve additions for this quarter compared to the same period last year. Looking forward, as we continue to implement the transition of Drake’s manufacturing and administrative overhead from Ohio to Old Bridge (which commenced upon the closing and is expected to be completed by the end of the third quarter), we have already begun to enjoy the synergies that we anticipated from this transaction, including meaningful cross-selling opportunities, reductions in operating expenses beginning in the second quarter and meaningful improvements in our gross margins as the transition effort is concluded.”