SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 10, 2008
Blonder Tongue Laboratories, Inc.
(Exact Name of registrant as specified in its charter)
Delaware 1-14120 52-1611421
(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of incorporation) 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
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.06 Material Impairments.
On April 10, 2008, the Board of Directors of Blonder Tongue Laboratories,
Inc. (the "Company") made the decision to cease the operations of its
wholly-owned subsidiary, Hybrid Networks, LLC ("Hybrid"), and liquidate its
assets. The Company plans to wind down the operations of Hybrid by August 1,
2008.
Hybrid's business activities consist of the operation of video, high-speed
data and/or telephony systems ("Systems") at 4 multi-dwelling unit communities
under certain right-of-entry agreements ("ROE Agreements"). As part of the
Company's on-going implementation of its strategic plan, management has
continued to evaluate the impact and long-term viability of non-core business
activities, including the continued operation of the Systems. The decision of
the Board of Directors to discontinue Hybrid's operations was based upon such
evaluation and the current cash flow and operating losses of Hybrid.
Based on this decision, the Company concluded on April 10, 2008 that a
non-cash impairment charge in the amount of approximately $400,000 is required
to write-off Hybrid's assets, which includes the ROE Agreements and the
equipment necessary to operate the Systems, substantially all of which is
installed at the applicable property location.
As a result of ceasing the operations of Hybrid, the Company expects to
make cash expenditures of approximately $50,000 in connection with the early
termination of certain contracts and agreements related to the operation of the
Systems.
Forward Looking Statements
This report contains forward-looking statements within the meaning of The
Private Securities Litigation Reform Act of 1995. These statements are neither
promises nor guarantees, are based upon assumptions and estimates that might not
be realized and are subject to risks and uncertainties that could cause actual
results to differ materially from those in the forward looking statements. These
risks and uncertainties include, but are not limited to, increases in cash
expenditures related to discontinuing the operations of Hybrid and the Company's
ability to complete this process by August 1, 2008. There are a number of
factors that may cause the Company's actual results to differ from these
forward-looking statements, including the success of marketing and sales
strategies and new product development, the price of raw materials, and general
economic and business conditions. Other risks and uncertainties that may
materially affect the Company are provided in the Company's annual reports to
shareholders and the Company's periodic reports filed with the Securities and
Exchange Commission from time to time, including reports on Forms 10-K and 10-Q.
Please refer to these documents for a more thorough description of these and
other risk factors.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BLONDER TONGUE LABORATORIES, INC.
By /s/ Eric Skolnik
Eric Skolnik
Senior Vice President and Chief Financial Officer
Date: April 16, 2008