UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997, OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________ TO _________ .
Commission file number 1-14120
BLONDER TONGUE LABORATORIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 52-1611421
(State or other jurisdiction of
incorporation or organization) (I.R.S. Employer Identification No.)
One Jake Brown Road, Old Bridge, New Jersey 08857
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (732) 679-4000
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes __X__ No _____
Number of shares of common stock, par value $.001,
outstanding as of November 6, 1997: 8,250,655
The Exhibit Index appears on page 13.
<PAGE>
BLONDER TONGUE LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
------------- ------------
(unaudited)
<S> <C> <C>
Assets (Note 4)
Current assets:
Cash and cash equivalents ..................................... $ 1,315 $ 1,340
Accounts receivable, net of allowance for doubtful
accounts of $395 and $280, respectively ..................... 13,343 8,987
Inventories (Note 3) .......................................... 16,568 16,028
Other current assets .......................................... 225 403
Deferred income taxes ......................................... 940 534
-------- --------
Total current assets .................................. 32,391 27,292
Property, plant and equipment, net of accumulated
depreciation and amortization ............................... 7,386 7,161
Other assets .................................................... 1,551 1,712
-------- --------
$ 41,328 $ 36,165
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt ............................. $ 497 $ 445
Accounts payable .............................................. 1,812 1,627
Accrued compensation .......................................... 1,745 993
Other accrued expenses ........................................ 1,241 589
Income taxes .................................................. 922 623
-------- --------
Total current liabilities ............................. 6,217 4,277
-------- --------
Deferred income taxes ........................................... 420 410
Revolving line of credit (Note 4) ............................... -- 1,176
Long-term debt, including related party debt of
$1,278 and $1,591, respectively ............................... 4,246 4,726
Commitments and contingencies (Note 5) .......................... -- --
Stockholders' equity:
Preferred stock, $.001 par value; authorized 5,000,000 shares;
no shares outstanding ....................................... -- --
Common stock, $.001 par value; authorized 25,000,000 shares,
8,242,799 shares issued and outstanding at
September 30, 1997 and 8,193,509 shares issued and
outstanding at December 31, 1996 ............................ 8 8
Paid-in capital ............................................... 21,739 21,499
Retained earnings ............................................. 8,807 4,069
Treasury stock at cost, 13,700 shares at September 30, 1997 and
no shares at December 31, 1996 .............................. (109) --
-------- --------
Total stockholders' equity ............................ 30,445 25,576
-------- --------
$ 41,328 $ 36,165
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
-2-
<PAGE>
BLONDER TONGUE LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net sales .............................................. $ 16,965 $ 13,154 $ 46,581 $ 36,419
Cost of goods sold ..................................... 10,784 8,134 30,371 22,902
-------- -------- -------- --------
Gross profit ......................................... 6,181 5,020 16,210 13,517
-------- -------- -------- --------
Operating expenses:
Selling expenses ..................................... 1,412 1,191 3,609 3,729
General and administrative ........................... 1,317 1,044 3,510 3,358
Research and development ............................. 409 534 1,463 1,488
-------- -------- -------- --------
3,138 2,769 8,582 8,575
-------- -------- -------- --------
Earnings from operations ............................... 3,043 2,251 7,628 4,942
-------- -------- -------- --------
Other income (expense):
Interest expense ..................................... (102) (159) (313) (526)
Other income ......................................... 555 -- 581 --
-------- -------- -------- --------
453 (159) 268 (526)
-------- -------- -------- --------
Earnings before income taxes ........................... 3,496 2,092 7,896 4,416
Provision for income taxes ............................. 1,398 839 3,158 1,766
-------- -------- -------- --------
Net earnings ......................................... $ 2,098 $ 1,253 $ 4,738 $ 2,650
======== ======== ======== ========
Net earnings per share ................................. $ 0.25 $ 0.15 $ 0.57 $ 0.32
======== ======== ======== ========
Weighted average shares outstanding .................... 8,394 8,308 8,316 8,298
======== ======== ======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
-3-
<PAGE>
BLONDER TONGUE LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
------------------
1997 1996
------- -------
<S> <C> <C>
Cash Flows From Operating Activities:
Net earnings ............................................. $ 4,738 $ 2,650
Adjustments to reconcile net earnings to cash
provided by (used in) operating activities:
Depreciation and amortization ........................ 1,049 827
Provision for doubtful accounts ...................... 115 135
Deferred income taxes ................................ (396) (339)
Changes in operating assets and liabilities:
Accounts receivable ................................ (4,471) (964)
Inventories ........................................ (540) (2,849)
Other current assets ............................... 178 634
Other assets ....................................... (143) (36)
Income taxes ....................................... 299 118
Accounts payable and accrued expenses .............. 1,589 (2,822)
------- -------
Net cash provided by (used in) operating activities 2,418 (2,646)
------- -------
Cash Flows From Investing Activities:
Capital expenditures ..................................... (807) (1,167)
Acquisition of licenses .................................. (163) (205)
------- -------
Net cash used in investing activities ............. (970) (1,372)
------- -------
Cash Flows From Financing Activities:
Net borrowings under revolving line of credit ............ (1,176) (1,154)
Proceeds from long-term debt ............................. 217 3,424
Repayments of long-term debt ............................. (645) (287)
Proceeds from sale of common stock ....................... -- 1,606
Acquisition of treasury stock ............................ (109) --
Proceeds from exercise of stock options .................. 240 174
------- -------
Net cash (used in) provided by financing activities (1,473) 3,763
------- -------
Net Increase (Decrease) In Cash ............................ (25) (255)
Cash, beginning of period .................................. 1,340 477
------- -------
Cash, end of period ........................................ $ 1,315 $ 222
======= =======
Supplemental Cash Flow Information:
Cash paid for interest ................................... $ 302 $ 492
Cash paid for income taxes ............................... 3,261 1,713
======= =======
</TABLE>
See accompanying notes to consolidated financial statements.
-4-
<PAGE>
BLONDER TONGUE LABORATORIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
(unaudited)
Note 1 - Company and Basis of Presentation
Blonder Tongue Laboratories, Inc. (the "Company") is a manufacturer of
television and satellite signal distribution equipment supplied to the private
cable television and broadcast industries. The consolidated financial statements
include the accounts of Blonder Tongue Laboratories, Inc. and subsidiaries.
Significant intercompany accounts and transactions have been eliminated in
consolidation.
The results for the nine months ended September 30, 1997 are not
necessarily indicative of the results to be expected for the full fiscal year
and have not been audited. In the opinion of management, the accompanying
unaudited consolidated financial statements contain all adjustments, consisting
only of normal recurring accruals, necessary for a fair statement of the results
of operations for the period presented and the consolidated balance sheet at
September 30, 1997. Certain information and footnote disclosure normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to the SEC rules
and regulations. These financial statements should be read in conjunction with
the financial statements and notes thereto that were included in the Company's
latest annual report on Form 10-K.
Note 2 - Effect of New Accounting Pronouncement
In February 1997, the FASB issued SFAS No. 128 "Earnings Per Share." In
accordance with this statement, basic earnings per share are based on the
weighted average shares outstanding during the period and diluted earnings per
share are based on the weighted average number of common shares and all dilutive
potential common shares that were outstanding during the period. In addition,
prior period financial statements have to be restated to reflect the change in
accounting principle. Effective December 15, 1997, the Company will adopt this
statement. The effect of the adoption will not have a material impact on the
Company's net earnings per share.
Note 3 - Inventories
Inventories are summarized as follows:
September 30, December 31,
1997 1996
------- -------
Raw Materials .......................... $ 7,898 $ 7,746
Work in process ........................ 3,692 2,451
Finished Goods ......................... 4,978 5,831
------- -------
$16,568 $16,028
======= =======
Note 4 - Line of Credit
In October 1997, the Company executed a new $15 million line of credit with
its bank, on which funds may be borrowed at the bank's overnight base rate (OBR)
plus .95% (6.51% at November 6, 1997). As of September 30, 1997, the Company had
no balance outstanding under the line of credit. The line of credit is
collateralized by a security interest in all of the Company's assets. The
agreement contains restrictions that require the Company to maintain certain
financial ratios. In addition, the Company has a $15 million acquisition loan
commitment which may be tendered to the bank to finance acquisitions in
accordance with certain terms. At September 30, 1997, there was no balance
outstanding under the acquisition loan commitment. The line of credit and the
acquisition loan commitment expire on June 30, 1999.
-5-
<PAGE>
BLONDER TONGUE LABORATORIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
(unaudited)
Note 5 - Commitments and Contingencies
On October 18, 1996, the Company was served with a complaint in a lawsuit
filed by Scientific-Atlanta, Inc., in the United States District Court for the
Northern District of Georgia, alleging patent infringement by the Company's
VideoMask(TM) interdiction product. The complaint requests an unspecified amount
of damages and injunctive relief. On October 31, 1997, the Company filed a
motion for summary judgment of non-infringement relating to one of the two
asserted Scientific-Atlanta patents. Scientific-Atlanta's answer to the motion
is due on November 24, 1997. The Company contemplates filing additional motions
for summary judgment relating to the other patent. Although the outcome of any
litigation cannot be predicted with certainty, the Company believes the
complaint is without merit and that the ultimate disposition of this matter will
not have a material effect on the Company's business. Accordingly, no provision
for this matter has been recorded in the financial statements.
-6-
<PAGE>
ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Forward-Looking Statements
In addition to historical information, this Quarterly Report contains
forward-looking statements relating to such matters as anticipated financial
performance, business prospects, technological developments, new products,
research and development activities and similar matters. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for forward-looking
statements. In order to comply with the terms of the safe harbor, the Company
notes that a variety of factors could cause the Company's actual results and
experience to differ materially from the anticipated results or other
expectations expressed in the Company's forward-looking statements. The risks
and uncertainties that may affect the operation, performance, development and
results of the Company's business include, but are not limited to, those matters
discussed herein in the sections entitled Part I, Item 1 - Management's
Discussion and Analysis of Financial Condition and Results of Operations and
Part II, Item 1 - Legal Proceedings. The words "believe", "expect",
"anticipate", "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. Readers should carefully review the risk factors described in
other documents the Company files from time to time with the Securities and
Exchange Commission, including without limitation, the Company's Annual Report
on Form 10-K for the year ended December 31, 1996 (See Item 1: Business, Item 3:
Legal Proceedings, and Item 7: Management's Discussion and Analysis of Financial
Condition and Results of Operations).
Third three months of 1997 Compared with third three months of 1996
Net Sales. Net sales increased $3,811,000, or 29.0%, to $16,965,000 in the
third three months of 1997 from $13,154,000 in the third three months of 1996.
International sales accounted for $446,000 (2.6% of total sales) for the third
three months of 1997 compared to $826,000 (6.3% of total sales) for the third
three months of 1996. Net sales did not include any milestone billings under the
Company's agreement with Pacific Bell for the third three months of 1997
compared to approximately $420,000 for the third three months of 1996.
The increase in sales is primarily attributed to an increase in demand for
products in the MDU market and the continued growth in the Lodging market. In
addition, the sales of VideoMask(TM) interdiction equipment remained strong. Net
sales included approximately $1,600,000 of VideoMask(TM) for the third three
months of 1997 compared to $536,000 for the third three months of 1996.
Effective July 18, 1997, the Company's contract with Pacific Bell was
terminated. The termination should not have a significant impact on 1997 sales.
The contract contained provisions for penalties upon early termination by either
party. In July 1997, the Company received a payment in the amount of $1.5
million from Pacific Bell for reimbursement of costs incurred by the Company
through the date of termination. The payment was offset by a portion of the
costs incurred by the Company for customized inventory ($708,000) and operating
expenses ($257,000) incurred in connection with the contract. In addition, the
Company recognized $535,000 in other income.
Cost of Goods Sold. Cost of goods sold increased to $10,784,000 for the
third three months of 1997 from $8,134,000 for the third three months of 1996
and also increased as a percentage of sales to 63.6% from 61.8%. The increase as
a percentage of sales was caused primarily by a greater proportion of sales
during the period being comprised of lower margin products.
Selling Expenses. Selling expenses increased to $1,412,000 in the third
three months of 1997 from $1,191,000 in the third three months of 1996,
primarily due to increased costs incurred for advertising, marketing materials
and trade shows and an increase in commissions due to the increase in sales. In
addition,
-7-
<PAGE>
there was an increase in shipping materials and royalty payments related to
licensing agreements. These increases were offset by the decrease in expenses
incurred related to Blonder Tongue International, Inc. ("BTI") as a result of
the closure of this office in 1996.
General and Administrative Expenses. General and administrative expenses
increased to $1,317,000 in the third three months of 1997 from $1,044,000 for
the third three months of 1996 but decreased as a percentage of sales to 7.8% in
the third three months of 1997 from 7.9% for the third three months of 1996. The
$273,000 increase can be attributed to an increase in the accrual for executive
bonuses under the executive officer bonus plan, an increase in the allowance for
doubtful accounts, and an increase in depreciation expense related to the
acquisition of new equipment such as computer hardware and software.
Research and Development Expenses. Research and development expenses
decreased to $409,000 in the third three months of 1997 from $534,000 in the
third three months of 1996, primarily due to the reimbursement of costs incurred
as a result of the termination of the Pacific Bell contract and a decrease in
purchased materials for research and development. These decreases were offset by
an increase in amortization of technology license agreements, an increase in
depreciation expense related to the acquisition of new equipment and an increase
in wages due to the hiring of personnel with higher qualifications. Research and
development expenses also decreased as a percentage of sales to 2.4% from 4.1%.
Operating Income. Operating income increased 35.2% to $3,043,000 for the
third three months of 1997 from $2,251,000 for the third three months of 1996.
Operating income as a percentage of sales increased to 17.9% in the third three
months of 1997 from 17.1% in the third three months of 1996.
Interest and Other Expenses. Other income in the third three months of 1997
consisted of $535,000 related to the final payment received from Pacific Bell as
a result of the contract termination in July 1997, along with $20,000 of
interest income offset by $102,000 of interest expense. Other expenses in the
third three months of 1996 consisted of interest expense of $159,000. The
reduction in interest expense is primarily attributed to reduced borrowings
under the Company's credit line.
Income Taxes. The provision for income taxes for the third three months of
1997 increased to $1,398,000 from $839,000 for the third three months of 1996 as
a result of increased taxable income.
First nine months of 1997 Compared with first nine months of 1996
Net Sales. Net sales increased $10,162,000, or 27.9%, to $46,581,000 in the
first nine months of 1997 from $36,419,000 in the first nine months of 1996.
International sales accounted for $1,209,000 (2.6% of total sales) for the first
nine months of 1997 compared to $2,251,000 (6.2% of total sales) for the first
nine months of 1996. Net sales did not include any milestone billings under the
Company's agreement with Pacific Bell for the first nine months of 1997 compared
to $1,245,000 for the first nine months of 1996.
The increase in sales is primarily attributed to an increase in demand for
products in the MDU market and the continued growth in the Lodging market. In
addition, the sales of VideoMask(TM) interdiction equipment remained strong. Net
sales included approximately $4,796,000 of VideoMask(TM) interdiction equipment
for the first nine months of 1997 compared to $1,342,000 for the first nine
months of 1996.
Effective July 18, 1997, the Company's contract with Pacific Bell was
terminated. The termination should not have a significant impact on 1997 sales.
The contract contained provisions for penalties upon early termination by either
party. In July 1997, the Company received a payment in the amount of $1.5
million from Pacific Bell for reimbursement of costs incurred by the Company
through the date of termination. The payment was offset by a portion of the
costs incurred by the Company for customized inventory ($708,000) and operating
expenses ($257,000) incurred in connection with the contract. In addition, the
Company recognized $535,000 in other income.
-8-
<PAGE>
Cost of Goods Sold. Cost of goods sold increased to $30,371,000 for the
first nine months of 1997 from $22,902,000 for the first nine months of 1996 and
increased as a percentage of sales to 65.2% from 62.9%. The increase as a
percentage of sales was caused primarily by a greater proportion of sales during
the period being comprised of lower margin products.
Selling Expenses. Selling expenses decreased to $3,609,000 in the first
nine months of 1997 from $3,729,000 in the first nine months of 1996, primarily
due to a reduction in costs incurred for trade shows, a decrease in expenses
related to BTI as a result of the closure of this office in 1996 and a decrease
in commissions due to the reduction in the number of sales representatives.
These decreases were offset by an increase in shipping materials and royalty
payments related to licensing agreements.
General and Administrative Expenses. General and administrative expenses
increased to $3,510,000 in the first nine months of 1997 from $3,358,000 for the
first nine months of 1996 but decreased as a percentage of sales to 7.5% in the
first nine months of 1997 from 9.2% for the first nine months of 1996. The
$152,000 increase can be attributed to an increase in executive compensation as
a result of the termination of the Company's 1989 Key Employee Salary Bonus Plan
along with an increase in the accrual for executive bonuses under the Company's
Executive Officer Bonus Plan. In addition, there was an increase in consulting
services related to the implementation of a new software package for the Company
and an increase in depreciation expense related to the acquisition of new
equipment such as computer hardware and software. These increases were offset by
a reduction in rent expense as a result of the expiration of the lease of the
San Diego facility effective June 30, 1997, which had been sublet during 1997,
along with a reduction in expenditures for professional services and insurance.
Research and Development Expenses. Research and development expenses
decreased 1.7% to $1,463,000 in the first nine months of 1997 from $1,488,000 in
the first nine months of 1996, primarily due to the reimbursement of costs
incurred as a result of the termination of the Pacific Bell contract and a
decrease in expenditures for consulting services that were incurred with respect
to the VideoMask(TM) product line in 1996. These decreases were offset by an
increase in amortization of technology license agreements, an increase in
depreciation expense related to the acquisition of new equipment and an increase
in wages due to the hiring of personnel with higher qualifications. Research and
development expenses also decreased as a percentage of sales to 3.1% from 4.1%.
Operating Income. Operating income increased 54.4% to $7,628,000 for the
first nine months of 1997 from $4,942,000 for the first nine months of 1996.
Operating income as a percentage of sales increased to 16.4% in the first nine
months of 1997 from 13.6% in the first nine months of 1996.
Interest and Other Expenses. Other income in the first nine months of 1997
consisted of $535,000 related to the final payment received from Pacific Bell as
a result of the contract termination in July 1997, along with $46,000 of
interest income offset by $313,000 of interest expense. Other expenses in the
first nine months of 1996 consisted of interest expense of $526,000. The
reduction in interest expense is primarily attributed to reduced borrowings
under the Company's credit line.
Income Taxes. The provision for income taxes for the first nine months of
1997 increased to $3,158,000 from $1,766,000 for the first nine months of 1996
as a result of increased taxable income.
Liquidity and Capital Resources
The Company's net cash provided by operating activities for the nine-month
period ended September 30, 1997 was $2,418,000, compared to cash used in
operating activities for the nine-month period ended September 30, 1996, which
was $2,646,000. Cash flows from operating activities have been positive, due
primarily to an increase in net earnings of $2,088,000, an increase in accounts
payable and accrued expenses offset by an increase in accounts receivable.
-9-
<PAGE>
Cash used in investing activities was $970,000, of which $163,000 was
utilized for fees associated with certain license agreements and $807,000 was
attributable to capital expenditures for new equipment. The Company anticipates
additional capital expenditures during calendar year 1997 aggregating,
approximately $1,300,000, which will be used for the purchase of automated
assembly and test equipment. The Company does not have any present plans or
commitments for material capital expenditures for fiscal year 1998.
Cash used in financing activities was $1,473,000 for the first nine months
of 1997, comprised primarily of $1,176,000 of payments on the line of credit and
prepayments of $313,000 on notes to shareholders.
In October 1997, the Company executed a new $15 million line of credit with
its bank, on which funds may be borrowed at the bank's overnight base rate (OBR)
plus .95% (6.51% at November 6, 1997). As of September 30, 1997, the Company had
no balance outstanding under the line of credit. The line of credit is
collateralized by a security interest in all of the Company's assets. The
agreement contains restrictions that require the Company to maintain certain
financial ratios. In addition, the Company has a $15 million acquisition loan
commitment which may be tendered to the bank to finance acquisitions in
accordance with certain terms. At September 30, 1997, there was no balance
outstanding under the acquisition loan commitment. The line of credit and the
acquisition loan commitment expire on June 30, 1999.
The Company currently anticipates that the cash generated from operations,
existing cash balances and amounts available under its existing line of credit,
will be sufficient to satisfy its foreseeable working capital needs.
Historically, the Company has satisfied its cash requirements primarily from net
cash provided by operating activities and from borrowings under its line of
credit.
New Accounting Pronouncement
In February 1997, the FASB issued SFAS No. 128 "Earnings Per Share." In
accordance with this statement, basic earnings per share are based on the
weighted average shares outstanding during the period and diluted earnings per
share are based on the weighted average number of common shares and all dilutive
potential common shares that were outstanding during the period. In addition,
prior period financial statements have to be restated to reflect the change in
accounting principle. Effective December 15, 1997, the Company will adopt this
statement. The effect of the adoption will not have a material impact on the
Company's net earnings per share.
-10-
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On October 18, 1996, the Company was served with a complaint in a patent
infringement lawsuit filed by Scientific-Atlanta, Inc. On October 31, 1997, the
Company filed a motion for summary judgment of non-infringement relating to one
of the two asserted Scientific-Atlanta patents. Scientific-Atlanta's answer to
the motion is due on November 24, 1997. The Company contemplates filing
additional motions for summary judgment relating to the other patent. This
lawsuit is more fully discussed in the Company's Quarterly Reports on Form 10-Q
for the quarterly periods ended March 31 and June 30, 1997 and in the Company's
Annual Report on Form 10-K for the year ended December 31, 1996.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
The exhibits are listed in the Exhibit Index appearing at page 13 herein.
(b) No reports on Form 8-K were filed in the quarter ended September 30, 1997.
-11-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
BLONDER TONGUE LABORATORIES, INC.,
Date: November 13, 1997
By:
-------------------------------------
James A. Luksch
President and Chief Executive Officer
By:
-------------------------------------
Peter Pugielli, Senior Vice President
- Finance
(Principal Financial Officer)
-12-
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit # Description Sequential Page Number
- --------- ----------- ----------------------
<S> <C> <C>
3.1 Restated Certificate of Incorporation of Incorporated by reference from
Blonder Tongue Laboratories, Inc. Exhibit 3.1 to S-1 Registration
Statement No. 33-98070, originally
filed October 12, 1995, as amended.
3.2 Restated Bylaws of Blonder Tongue Incorporated by reference from
Laboratories, Inc. Exhibit 3.2 to S-1 Registration
Statement No. 33-98070, originally
filed October 12, 1995, as amended.
27 Financial Data Schedule Electronic Filing only.
</TABLE>
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BLONDER
TONGUE LABORATORIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 1997 AND BALANCE SHEET AS AT
SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,315
<SECURITIES> 0
<RECEIVABLES> 13,738
<ALLOWANCES> 395
<INVENTORY> 16,568
<CURRENT-ASSETS> 32,391
<PP&E> 9,902
<DEPRECIATION> 2,516
<TOTAL-ASSETS> 41,328
<CURRENT-LIABILITIES> 6,217
<BONDS> 0
0
0
<COMMON> 8
<OTHER-SE> 30,437
<TOTAL-LIABILITY-AND-EQUITY> 41,328
<SALES> 46,581
<TOTAL-REVENUES> 46,581
<CGS> 30,371
<TOTAL-COSTS> 30,371
<OTHER-EXPENSES> 8,467
<LOSS-PROVISION> 115
<INTEREST-EXPENSE> 313
<INCOME-PRETAX> 7,896
<INCOME-TAX> 3,158
<INCOME-CONTINUING> 7,628
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,738
<EPS-PRIMARY> 0.57
<EPS-DILUTED> 0.57
</TABLE>
