As a result of the transaction, outstanding shares were reduced from approximately 7.5 million to 6.2 million.
The shares were owned by James H. Williams, a former director of the Company, and held in a margin account with Ferris Baker Watts, Incorporated. Ferris Baker sold the shares to the Company pursuant to a margin call on Mr. Williams account.
Commenting on the stock purchase, James A. Luksch, Chief Executive Officer, said, "This was an exceptional opportunity to purchase a large block of Blonder Tongue stock at a substantial discount to market. This transaction should increase our book value per share by approximately 15%, and should increase our earnings per share by approximately 21% on an annualized basis." Mr. Luksch continued, "The Company's reduced utilization on our existing revolving credit facility enabled us to buy back these shares without significant working capital impact."
Founded in 1950, Blonder Tongue Laboratories, Inc. has evolved from a manufacturer of electronic equipment for the private cable industry to a principal provider of integrated network solutions and technical services to broadband service providers. The Company designs, manufactures, and supplies a comprehensive line of equipment to deliver video (analog & digital), high speed data and voice services over integrated coaxial and fiber optic broadband networks today and over packet based, Internet protocol networks of the future.
By Blonder Tongue Laboratories
Posted December 26th, 2006 by Nymphadora
