Telecom Sales Juice Up Blonder Tongue11/28/2004 7:00 PM Eastern
Blonder Tongue stock surged more than 19% (60 cents per share), closing at $3.70 each on Nov. 22, after the broadband equipment maker reported strong third-quarter results.
Revenue was up 22% in the period to $11.2 million and earnings were $406,000 (5 cents per share), compared to a loss of $65,000 (1 cent per share) a year ago.
In a statement, Blonder Tongue CEO James Luksch said growth prospects are expected to continue for the long term. About 40% of the quarter-to-quarter revenue growth was due to increased sales in its data and telephony product lines, Luksch said in the statement. Coupled with analog and digital-video products such as its QT series of QAM transcoders, the Old Bridge, N.J.-based equipment maker has a full line of triple-play products. Blonder Tongue also expects the introduction of its TV Channel Blocker, which enables customers to restrict access to undesirable programming, to contribute to higher sales in 2005.
“The market potential for increased sales of these products is much greater than that which has been realized to date,” Luksch said.