Mixed 1Q Results for Blonder Tongue5/13/2005 3:11 AM Eastern
First-quarter-2005 net sales were up at Blonder Tongue Laboratories Inc., but so was the vendor’s operating loss.
The company said an increase in capital spending by cable operators for its headend and distribution products boosted net sales 8.7% to $9.269 million from $8.529 million in the year-earlier period.
However, an increase in Blonder Tongue’s inventory reserve of $603,000 during the period increased its operating loss to $603,000 from $122,000 in the first quarter of 2004. And the company’s net loss rose to $890,000 from $397,000.
“It is a pleasure to report what appears to be a rebound in the markets we serve, as demonstrated by the sequential and year-to-year equivalent-quarter sales increases that we have experienced,” chairman and CEO James A. Luksch said in a prepared statement.
“Unfortunately, continued slowness in some product categories required us to again take a significant noncash charge to our inventory, which adversely impacted the company's reported performance,” he added. “Considerable resources are being expended to sell and/or convert this inventory and reverse the recent trend of recurring noncash charges on the company's profits and losses. Sales are improving, and further increase in sales momentum and management of slow-moving inventory are the primary goals of the company in 2005.”