Blonder Tongue Reports Second Quarter and Six Months 2022 Results

Rhea-AI Summary

Blonder Tongue Laboratories (OTCQB: BDRL) reported a net sales decrease of 2.4% to $4.234 million for Q2 2022, down from $4.338 million in Q2 2021. The company faced a net loss of $(1.154 million) or $(0.09) per diluted share, contrasting with a net income of $1.626 million or $0.11 per share from the previous year. Factors influencing results included rising raw materials costs, semiconductor supply issues, and a decrease in sales of certain product lines, although sales from DOCSIS data and encoder/transcoder products increased. A significant sales backlog of approximately $9.783 million was noted.

Positive

• Strong bookings and demand for NXG IP video processing platform and related products.
• Increased sales in DOCSIS data products and encoder/transcoder products.
• Recognition of higher demand for newer products with improved technology.

Negative

• Net sales decreased by 2.4% to $4.234 million in Q2 2022.
• Net loss of $(1.154 million) compared to a profit of $1.626 million in Q2 2021.
• Continued decline in sales of CPE and analog modulation products.
• Substantial doubt about the company's ability to continue as a going concern due to liquidity issues.

OLD BRIDGE, NJ / ACCESSWIRE / August 15, 2022 / Blonder Tongue Laboratories, Inc. (OTCQB:BDRL) announced its sales and results for the second quarter and six months ended June 30, 2022.

Blonder Tongue Laboratories, Inc. net sales decreased $104,000 or 2.4% to $4,234,000 for the second quarter of 2022 from $4,338,000 for the comparable period in 2021. Net loss for the three months ended June 30, 2022, was $(1,154,000) or $(0.09) per diluted share, compared to net income of $1,626,000 or $0.11 per diluted share for the comparable period in 2021.

Commenting on the Company's second quarter results, Chief Executive Officer Ted Grauch noted, "While Blonder Tongue Laboratories continued to see strong bookings and growing demand for our NXG IP video processing platform, Clearview and Drake IP video encoders and transcoders, and DOCSIS high speed data over cable product lines during the second quarter, we continued to face headwinds of rising raw materials costs and fixed allocations of key semiconductor chipsets throughout the quarter. The Company responded by raising prices on all affected products, reducing additional operating expenses, and working closely with our customers to introduce our price increases as quickly as possible. Our second quarter loss was primarily caused by manufacturing limitations due to chipset availability and quantity allocations from our suppliers, and the time delay between product price increases and the realization of higher product revenues per unit, as backlog purchase orders are filled at previous pricing levels. We believe that the work we have done during the first half of 2022 to reduce expenses, raise prices, and increase our manufacturing efficiencies will have positive impacts on the Company's performance in future periods. Our product mix continues to generally improve towards our higher margin, newest product lines with highest technology content, and we are continuing to win new business with large Cable, Telco, and Fiber Optic service providers in line with our multi-year strategy of increasing direct engagement with the biggest potential end users of our products. The Company is seeing a general stabilization in the majority of our chipset supply chain, and although we will have higher chipset allocations on some key raw materials at the end of this year, we remain cautious to forecast any broad semiconductor supply recovery for a specific future period."

The decrease in sales is primarily attributable to a decrease in sales of digital modulation products, CPE products and analog modulation products, offset by an increase in sales of DOCSIS data products and encoder/transcoder products. Sales of digital modulation products were $45,000 and $381,000, CPE products were zero and $288,000, analog modulation products were $138,000 and $238,000, DOCSIS data products were $686,000 and $284,000 and encoder/transcoder products were $2,163,000 and $1,940,000 in the second three months of 2022 and 2021, respectively. The Company experienced a reduction in CPE products due to the continued deemphasis of this product line, which the Company expects to continue during the remainder of 2022. The Company experienced a reduction in analog modulation products due to the continued market shifting away from analog modulation solutions. The Company expects the sales of the analog modulation products to continue to decline during the second half of 2022. The Company experienced an increase in DOCSIS data products due to the pent-up demand caused by the pandemic as these products are used primarily in the hospitality and assisted-living environments. The Company expects sales of these products may return to more historical levels during the second half of 2022. The Company experienced an increase in encoder/transcoder products as these product lines represent newer products and newer technologies with higher demand from customers. The Company expects sales of these product lines to remain at these levels or increase during the second half of 2022. Although the Company does not expect overall sales to return to pre pandemic levels during 2022, the Company does expect overall sales to be higher during 2022, due to approximately $9,783,000 of sales backlog at June 30, 2022.

For the six months ended June 30, 2022, net sales decreased $14,000 or 0.2% to $7,575,000 in 2021 from $7,589,000 for the comparable period in 2021. Net loss for the six months ended June 30, 2022, was $(2,307,000) or $(0.17) per diluted share, compared to net income of $1,212,000 or $0.08 per diluted share for the comparable period in 2021.

The decrease in sales is primarily attributable to a decrease in sales of CPE products, analog modulation products and coax distribution products offset by an increase in sales of DOCSIS data products and encoder/transcoder products. Sales of CPE products were $27,000 and $983,000, analog modulation products were $237,000 and $482,000, coax distribution products were $620,000 and $783,000, DOCSIS data products were $1,140,000 and $308,000 and encoder/transcoder products were $3,681,000 and $3,107,000 in the first six months of 2022 and 2021, respectively. The Company experienced a reduction in CPE products due to the continued deemphasis of this product line, which the Company expects to continue during the remainder of 2022. The Company experienced a reduction in analog modulation products due to the continued market shifting away from analog modulation solutions. The Company expects the sales of the analog modulation products to continue to decline during 2022. The Company experienced an increase in DOCSIS data products due to the pent-up demand caused by the pandemic as these products are used primarily in the hospitality and assisted-living environments. The Company expects sales of these products may return to more historical levels during the second half of 2022. The Company experienced an increase in encoder/transcoder products as these product lines represent newer products and newer technologies with higher demand from customers. The Company expects sales of these product lines to remain at these levels or increase during the second half of 2022.

The Company's primary sources of liquidity have been its existing cash balances, cash generated from operations, amounts available under the MidCap Facility and amounts available under the Subordinated Loan Facility. As of June 30, 2022, the Company had approximately $3,918,000 outstanding under the MidCap Facility and $389,000 of additional availability for borrowing under the MidCap Facility.

As disclosed in the Company's most recent Annual Report on Form 10-K, the Company experienced a decline in sales, a reduction in working capital, a loss from operations and net cash used in operating activities, in conjunction with liquidity constraints. These factors raised substantial doubt about the Company's ability to continue as a going concern. As of June 30, 2022, the above factors still exist. Accordingly, there still exists substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

Conference Call Reminder

Details of the live teleconference:

Date: Monday, August 15, 2022
Time: 11:00 a.m. Eastern Time (10:00 a.m. CT, 8:00 a.m. PT)
Investor Dial-in (US & Canada Toll-Free): 888-506-0062
Entry Code: 534009

The audio replay will be available under Investor Related Information on the Blonder Tongue Investor Relations webpage.

About Blonder Tongue

Blonder Tongue Laboratories, Inc. is the oldest designer and manufacturer of telecommunications and cable television video transmission technology in the USA. The majority of our products continue to be designed and built in our state-of-the-art New Jersey facility, which has been the Company's home for more than 50 years. Blonder Tongue Labs offers U.S.-based engineering and manufacturing excellence with an industry reputation for delivering ultra-high reliability products. As a leader in cable television system design, the Company provides service operators and systems integrators with comprehensive solutions for the management and distribution of digital video, IPTV and high-speed data services, as well as RF broadband distribution over fiber, IP, and Coax networks for homes and businesses. Additional information on the Company and its products can be found at www.blondertongue.com

"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, 2021 (See Item 1: Business, Item 1A: Risk Factors, Item 3: Legal Proceedings 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. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Blonder Tongue anticipates or expects may or will occur in the future should be considered "forward-looking" statements, including statements that use the words "believe", "expect", "anticipate", "project", "target", "intend", "plan", "seek", "estimate", "endeavor", "should", "could", "may" and similar expressions. In addition, any statements that refer to projections for our future financial performance, our anticipated growth trends in our business and other characterizations of future events or circumstances are forward-looking statements, including statements regarding our ability to continue as a going concern. 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 or update 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 Laboratories, Inc.
Condensed Consolidated Summary of Operating Results
(unaudited, in thousands, except per share data)

		Three months ended								Six months ended
		June 30,								June 30,
		2022				2021				2022				2021
Net sales		$	4,234			$	4,338			$	7,575			$	7,589
Gross profit			1,060				1,605				1,999				2,990
Loss from operations			(962	)			(617	)			(1,982	)			(1,480	)
Net (loss) income		$	(1,154	)		$	1,626			$	(2,307	)		$	1,212
Basic net (loss) income per share		$	(0.09	)		$	0.14			$	(0.17	)		$	0.10
Diluted net loss) income per share		$	(0.09	)		$	0.11			$	(0.17	)		$	0.08
Basic weighted average shares outstanding			13,317				11,984				13,222				11,818
Diluted weighted average shares outstanding			13,317				15,254				13,222				15,186

Blonder Tongue Laboratories, Inc.
Condensed Consolidated Summary Balance Sheets
(in thousands)

		(unaudited)
		June 30, 2022				December 31, 2021
Current assets		$	8,585			$	7,678
Property, plant and equipment, net			249				290
Total assets			12,297				11,910
Current liabilities			8,687				6,060
Long-term liabilities			2,142				2,565
Stockholders' equity			1,468				3,285
Total liabilities and stockholders' equity		$	12,297			$	11,910

Contacts:

Eric Skolnik
Chief Financial Officer
eskolnik@blondertongue.com
(732) 679-4000

Ted Grauch
Chief Executive Officer
tgrauch@blondertongue.com
(732) 679-4000

SOURCE: Blonder Tongue Laboratories, Inc.

View source version on accesswire.com:
https://www.accesswire.com/711976/Blonder-Tongue-Reports-Second-Quarter-and-Six-Months-2022-Results

FAQ

What were the sales results for Blonder Tongue Laboratories in Q2 2022?

Blonder Tongue Laboratories reported net sales of $4.234 million for Q2 2022, a 2.4% decrease from $4.338 million in Q2 2021.

What was the net loss reported by BDRL for the second quarter of 2022?

Blonder Tongue Laboratories reported a net loss of $(1.154 million) or $(0.09) per diluted share for Q2 2022.

How does the sales backlog impact Blonder Tongue's financial outlook?

Blonder Tongue Laboratories noted a sales backlog of approximately $9.783 million as of June 30, 2022, which may contribute positively to future sales.

What challenges did Blonder Tongue face in Q2 2022?

The company faced challenges including rising raw materials costs, semiconductor supply shortages, and a decrease in sales of certain product lines.

What is the outlook for sales of DOCSIS data products?

Sales of DOCSIS data products are expected to remain strong, driven by pent-up demand from the pandemic, especially in hospitality and assisted-living environments.