Blonder Tongue Laboratories, Inc.

Net sales in the third quarter of 2022 were $5.262 million, up $1.090 million or 26.1% from $4.172 million a year earlier. Q3 net loss was $703,000, or $0.05 per diluted share, versus a loss of $201,000, or $0.02 per diluted share, in Q3 2021. For the first nine months of 2022, net sales were $12.837 million, up 9.2% from $11.761 million, while net loss was $3.010 million, or $0.23 per diluted share, versus net income of $1.011 million, or $0.08 per diluted share, in the prior-year period. Management said Q3 operating loss improved to $475,000 from $703,000 a year ago, and operating cash usage improved to $220,000 from $753,000. End-of-September backlog was approximately $7.162 million. The company said it expects sales of NXG IP video signal processing products and encoder/transcoder products to remain at current levels or increase for the rest of 2022, DOCSIS sales to remain at current levels, and CPE/analog modulation sales to continue declining. There was no formal 2023 guidance, but management said overall sales should be higher in 2022 due to backlog, while next year depends on improving semiconductor allocations and supply availability.

Ted Grauch framed the quarter as a mix of strong product demand and continued supply-chain friction. He emphasized that newer, higher-margin products are driving growth, that semiconductor markets are stabilizing, and that the company is seeing better lead times and improving allocations. His tone was cautiously optimistic, but he repeatedly acknowledged that the company cannot be satisfied with its current performance and said management is pushing operating efficiency as hard as it can.

Eric Skolnik focused on the quarter’s financial progression and the company’s liquidity position. He cited Q3 net sales of $5.262 million, a net loss of $703,000, and operating cash use of $220,000, all of which improved versus the second quarter. He also pointed to $4.318 million outstanding under the MidCap Facility, $520,000 of remaining availability, and the October 28 amendment that extended the loan agreement to June 30, 2023 and increased the 2022 over-advance facility to $1.5 million. He reiterated that substantial doubt about going concern remains because of sales declines, reduced working capital, operating losses, and liquidity constraints.

Analysts and shareholders pressed management on 2023 guidance, profitability, financing, and whether the business could be a merger or acquisition candidate. Ted said the company does not normally give future-quarter guidance, but expects optimism from higher semiconductor allocations and continued demand for its newer products, while refusing to speculate beyond that. On financing, Eric said the company constantly explores debt and equity options but is limited by size and market conditions; the recent credit amendment was described as the main current source of added liquidity. Ted also confirmed that strategic alternatives remain on the table and that the company is actively talking with multiple parties.