Blonder Tongue Laboratories Inc. (NYSE MKT:BDR) Q2 2019 Earnings Conference Call - Final Transcript

Aug 14, 2019 • 11:00 am ET

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Blonder Tongue Laboratories Inc. (NYSE MKT:BDR) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen and welcome to this Blonder Tongue's Second Quarter 2019 Results Conference Call. [Operator Instructions] Also a reminder that today's conference is being recorded. [Operator Instructions]

And now, to get us started with opening remarks and introductions, I am pleased to turn the floor to CEO Mr. Bob Palle. Please go ahead, sir.

Executive
Robert J. Palle

Good morning, everyone. Welcome to Blonder Tongue's 2019 second quarter and six months financial reporting teleconference. We thank you for your participation. Before we begin our presentations this morning, I'd like to preface my remarks and those made by other Blonder Tongue representatives who may be speaking today by reminding you that we will be discussing certain subjects which will contain forward-looking statements, including management's view of our prospects and evolving trends in the marketplace.

As you know, the future is impossible to predict, so I caution you that actual results may differ from those that may be projected in our comments this morning. For additional information concerning factors that could cause actual results to differ from the information that will be discussed this morning, I ask you that you refer to our prior SEC filings, including our form 10-Qs for prior quarters, including the first, second and third quarters 2018 and the first and second quarters 2019 and 10-Ks for years 2018 and '17, as well as our SEC 8-K filings.

With me today are Steve Shea, Chairman of the Board; Ted Grauch, President and Chief Operating Office; Eric Skolnik, Senior Vice President and Chief Financial Officer. Our presentations will follow in that same sequence. And following the presentations, all of us will be available to answer any questions you may have during the question-and-answer period. As stated in the last teleconference and in my letters to you for prior years, we outlined the areas within which we needed to achieve major improvements in order to affect the successful turnaround in our financial performance and as a result of those major improvements, drive an increase in stockholder value.

We remain committed to achieving those goals. We believe that our comments in the press release this morning bear repeating. Although sales in the second quarter of 2019 showed a 3% increase over sales in the second quarter of 2018 and a 33% increase over the first quarter of 2019, we are disappointed in the amount of the increase and the resulting financial performance. We are taking steps to address these issues by making adjustments to our operating expenses so that they better align with our current sales forecast and by increasing the intensity of our new product sales initiatives. Despite this second quarter and year to date performance, we're pleased with the early responses to both our IPTV set-top box and NeXgen gateway introductions. We anticipate that these initiatives will be the catalysts for an increase in sales in future periods. Continuing, we have engaged the management talent and committed the resources to move the new development sales initiatives forward, which as you can