How's this for a company name? Blonder Tongue Laboratories Inc. (BDR). They are a $9 million company. I would have liked to have been in the room when they brainstormed the names. 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. They are dumping the subsidiary Hybrid Networks to focus on their core business. Their earnings might be really nice as the switch is made to digital in the years coming up.

Some Potential
They have been buying back shares for the past couple years reducing their share count. Probably a good deal for shareholders as the stock is trading around Net Current Asset Value. Revenue growth has been ugly. Down 7% in 2007. They came out of the red in 2006 to earn $.05 but struggle again. If getting rid of all these non-core subs work they could bring in some decent gross margins and maybe even earnings growth. Gross margins have averaged 34% in 2007. I like the $1.64 million in free cash flow last year.

Yep, margins are improving..
"Commenting on the third quarter 2007 results, James A. Luksch, Chief Executive Officer, said, "Our China initiative remains on course and during the third quarter we started to realize noticeable benefits from reduced costs due to this effort. This is evidenced by the fact that our gross margin on sales of products improved from 36.3% in the second quarter of 2007 (after giving effect to our increase in inventory reserves) to 37.7% in the third quarter of 2007. We anticipate further improvements in gross margin in the fourth quarter of 2007 and continuing into 2008. Our third quarter sales were higher as compared to the prior year and we continued to show improvement sequentially as our third quarter sales in 2007 were approximately 14% higher than the second quarter of 2007."
The Release

Maybe a good play from their filing...
The cable market has reacted quickly to consumer demands for additional services by integrating multiple technologies into their existing networks to provide consumers high-speed data and telephony in addition to video offerings. Telephone companies have also entered this competitive arena by upgrading their existing distribution networks, enabling them to be able to provide video and high-speed data in addition to telephony offerings. As a result of these market forces, the lodging and institutional markets are now playing catch up in order to meet consumers’ expectations that these services be available, and are installing new infrastructure and upgrading existing networks. This is a significant area of opportunity for the Company to market and sell it’s core product line.

Most of the changes in the market segments that the Company serves have recently been focused on the transition to digital technologies. One of the most promising areas is Internet Protocol Television (“IPTV”), an emerging technology that allows viewers to access broadcast network channels, subscriber services and movies-on-demand. This technology is already experiencing full scale commercialization in international markets such as Hong Kong, Italy and France. The worldwide market projections are impressive with an estimated 62 million subscribers subscribing to IPTV services by 2010. The Company has negotiated license agreements that will provide entry into this promising market, and is currently developing products to meet the needs of customers in the markets that it serves.

Eternal Technologies (ETLT) webmaster still struggles with English

"Company Will Disclose Financial Data Periodic

In order to let all shareholders know our financial manage result in each quarter timely, company decide to disclose some un-audit manage data on our website from this quarter in 2008."

The website layout is different now. Better but weird. Notice the "hot" text on the right. The company is definitely undervalued and still has good fundamentals.


full disclosure: no position in BDR. long Eternal Technologies ETLT