-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KNWX0fyVYd10cBUgRIoMBNI+5zhxUDLnEotTH232BhhJVvydfLIzfLl/H0qrJMjF jPecE8SG//Ad3pwy5qZFYg== 0001307942-06-000106.txt : 20060615 0001307942-06-000106.hdr.sgml : 20060615 20060615170650 ACCESSION NUMBER: 0001307942-06-000106 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060609 ITEM INFORMATION: Termination of a Material Definitive Agreement ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060615 DATE AS OF CHANGE: 20060615 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLONDER TONGUE LABORATORIES INC CENTRAL INDEX KEY: 0001000683 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 521611421 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14120 FILM NUMBER: 06907922 BUSINESS ADDRESS: STREET 1: ONE JAKE BROWN RD STREET 2: PO BOX 1000 CITY: OLD BRIDGE STATE: NJ ZIP: 08857 BUSINESS PHONE: 9086794000 MAIL ADDRESS: STREET 1: ONE JAKE BROWN ROAD CITY: OLD BRIDGE STATE: NJ ZIP: 08857 8-K 1 blonder8k061506.htm
                       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): June 9, 2006


                        Blonder Tongue Laboratories, Inc.
             (Exact Name of registrant as specified in its charter)



           Delaware                     1-14120                  52-1611421
(State or other jurisdiction    (Commission File Number)      (I.R.S. Employer
       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 1.02  TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT.

     On November 11, 2005, the Company  announced that it, and its  wholly-owned
subsidiary,  Blonder  Tongue Far East,  LLC,  had entered  into a Joint  Venture
Agreement ("JV Agreement") with Master Gain International Industrial, Limited, a
Hong Kong corporation  ("Master  Gain"),  dated as of November 11, 2005, for the
manufacturing  of  products  in the  People's  Republic  of  China  (the  "Joint
Venture"),  pursuant to which the parties  subsequently  caused the formation of
Blonder Tongue  International  Holdings,  Ltd., a British Virgin Islands company
("BTIH").  On June 9, 2006 (The "Termination  Date"), the Company sent notice to
Master Gain of its election to terminate the JV Agreement and exercise its right
to purchase Master Gain's fifty percent (50%)  ownership  interest in BTIH which
the Company anticipates will be for nominal consideration.

     The Company  determined  to  terminate  the JV  Agreement  due to the Joint
Venture's  failure to meet certain quarterly  financial  milestones set forth in
the JV Agreement. The inability to meet such financial milestones was caused, in
part, by the failure of Master Gain to contribute  the  $5,850,000 of capital to
the Joint Venture as required by, and within the timeframes specified in, the JV
Agreement,  which failure has continued to date; and the Joint Venture's failure
to  obtain  certain  governmental  approvals  and  licenses  necessary  for  the
operation of the Joint Venture.

     The JV  Agreement  contemplated  the  formation  of several  new  entities,
including  a  new  Chinese  manufacturing  company  to  be  owned  (directly  or
indirectly) by BTIH. In addition,  the Joint Venture was, among other things, to
be granted a license from the Company to use certain of the Company's technology
and know-how ("License") in connection with the manufacture of certain products,
and was to be appointed as the  exclusive  distributor  of such  products in the
Asian,  Southeast  Asian,  African,  European,  Middle  Eastern  and  Australian
markets.  It was further  anticipated  that the Joint Venture would seek out and
acquire other technology and rights from third parties,  including all of Master
Gain's right,  title and interest in and to the cable modem  termination  system
("CMTS") hardware and software technology and know-how  (collectively,  the "New
Technology"),  and manufacture  products developed from the New Technology,  for
which the Company was to be appointed as the exclusive  distributor in the North
American, South American and Caribbean markets. As of the Termination Date, BTIH
is the only entity that has been  formed by the Joint  Venture,  the Company has
not  granted the License to the Joint  Venture  and no New  Technology  has been
acquired by the Joint Venture.

     Master Gain is an  affiliate  of Shenzhen  Junao  Technology  Company  Ltd.
("Shenzhen"),  which  purchased  T.M.T.  - Third  Millennium  Technologies  Ltd.
("TMT"),  the  manufacturer  and supplier of the Company's  MegaPort(TM)line  of
high-speed data communications  products,  from Octalica,  Inc.  ("Octalica") in
February 2006. At the same time, the Company amended its distribution  agreement
with TMT to expand its distribution  territory,  favorably amend certain pricing
and volume  provisions  and  extended  by 10 years the term of the  distribution
agreement  for its  MegaPort(TM)product  line. As part of the  transaction,  the
Company  was  required  to  guaranty  the payment by Shenzhen to Octalica of the
purchase price for TMT, equal to $383,150, plus an earn-out. In exchange for the
guaranty,  the Company obtained assignable options to acquire  substantially all
of the  assets and assume  certain  liabilities  of TMT,  or  alternatively,  to
acquire  from  Shenzhen  all  of  the  outstanding  capital  stock  of  TMT,  on
substantially  the  same  terms  as the  acquisition  of TMT  by  Shenzhen  from
Octalica.  These options  expire on February 26, 2007, and are extendable by the
Company  for an  additional  90 days  thereafter.  The  Company has not, as yet,
determined  whether or when such  options may be  exercised.  In  addition,  the
Company is involved in other ongoing  transactions with Master Gain and Shenzhen
related to the CMTS technology and certain fiber optic products.






Although the  termination of the JV Agreement has delayed the Company's  efforts
to begin production of its products in China,  the Company  continues to believe
that establishing a manufacturing  facility in China is in the best interests of
the Company.  The Company  believes that the manufacture of its core products in
China will  reduce the  Company's  manufacturing  cost,  thereby  improving  the
Company's gross margins and allowing a more aggressive  marketing program in the
private cable market,  will provide  access to, and  potential  acquisition  of,
advanced  technologies,  including  technology  in the  hybrid  fiber coax (HFC)
transmission,  the IPTV core passive  component and high speed data fields,  and
will  facilitate the Company's  ability to sell to private and franchised  cable
operators  in the Pacific Rim,  particularly  in China.  The Company  intends to
continue  actively  pursuing  opportunities  in China,  either  independently or
through a joint venture  relationship with alternative joint venture partners or
a restructured joint venture relationship with Master Gain or Shenzhen.

Item 7.01.   Regulation FD Disclosure

On June 15, 2006, the Company issued a press release  announcing the termination
of the JV Agreement (as  discussed in Item 1.02 hereof),  which press release is
attached hereto as Exhibit 99.1.  This press release is  incorporated  into this
Item 7.01 by reference.

Item 9.01.  Financial Statements and Exhibits

(a)      Not applicable

(b)      Not applicable

(c)      The following exhibits are filed herewith:

                  Exhibit 99.1      Press Release dated June 15, 2006.


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. There
are a number of  factors  that may cause  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.  Further,  there can be no assurance that the





Company will be able to successfully  establish operations in China, or that any
operations  established  will be efficient or provide the benefits  anticipated.
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.







                                    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 CFO


Date: June 15, 2006








EX-99 2 blonderex99to8k061506.htm PRESS RELEASE
                                                                    Exhibit 99.1

FOR IMMEDIATE RELEASE                                CONTACT:   James A. Luksch
                                                                Chairman and
                                                                Chief Executive
                                                                Officer
                                                                (732) 679-4000

                BLONDER TONGUE TERMINATES JOINT VENTURE AGREEMENT


OLD BRIDGE, NEW JERSEY, June 15, 2006 – Blonder Tongue Laboratories, Inc. (AMEX:
“BDR”) today  announced its election to terminate  its Joint  Venture  Agreement
(“JV Agreement”) with Master Gain International Industrial, Limited, a Hong Kong
corporation.

     The  Company  and its  wholly-owned  subsidiary,  Blonder  Tongue Far East,
entered  into the JV  Agreement  with Master  Gain on November  11, 2005 for the
manufacturing  of products in the People’s  Republic of China. In furtherance of
the Joint Venture,  the parties formed  Blonder Tongue  International  Holdings,
Ltd., a British Virgin  Islands  company  (“BTIH”).  On June 9, 2006 the Company
sent notice to Master Gain of its election to exercise its termination rights of
the JV Agreement and exercise its right to purchase  Master Gain’s fifty percent
(50%)  ownership  interest  in BTIH,  which the  Company  anticipates  to be for
nominal consideration.  As a result, BTIH will be wholly-owned by Blonder Tongue
Far East.

     The Company  terminated the JV Agreement due to the Joint Venture’s failure
to meet  certain  quarterly  financial  milestones.  The  inability to meet such
financial  milestones  was  caused,  in part,  by the  failure of Master Gain to
contribute  the  $5,850,000  of  capital  to the  Joint  Venture  and the  Joint
Venture’s  failure  to  obtain  certain  governmental   approvals  and  licenses
necessary for its operation.

     Commenting on the termination of the JV Agreement, Bob Palle, the Company’s
President  said,  “Establishing  a  manufacturing  facility  in China  will have
significant benefits including increasing gross margins and international sales.
Although the termination of the JV Agreement will delay Blonder Tongue’s plan to
directly  manufacture  products in China, we are continuing to move forward with
our  strategic  plan to  establish  a  presence  in China and we are  evaluating
alternative opportunities, both independently and with potential partners.”

     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.
For more information regarding Blonder Tongue or its products,  please visit the
Company's Web site at  www.blondertongue.com  or contact the Company directly at
(732) 679-4000.

“Safe Harbor”  Statement under the Private  Securities  Litigation Reform Act of
1995: The information set forth above includes “forward-looking”  statements and
accordingly,  the cautionary  statements  contained in Blonder  Tongue’s  Annual
Report and Form 10-K for the year ended December 31, 2005 (See Item 1: Business,
Item 1A:  Risk  Factors  and Item 7:  Management’s  Discussion  and  Analysis of
Financial  Condition  and Results of  Operations),  and other  filings  with the
Securities  and  Exchange  Commission  are  incorporated  herein  by  reference.
Further, there can be no assurance that the Company will be able to successfully
establish  operations  in  China,  or that any  operations  established  will be
efficient or provide the benefits  anticipated.  The words “believe”,  “expect”,
“anticipate”,   “project”,  and  similar  expressions  identify  forward-looking
statements.  Readers  are  cautioned  not  to  place  undue  reliance  on  these
forward-looking  statements,  which reflect management’s analysis only as of the
date hereof.  Blonder Tongue  undertakes no obligation to publicly  revise these
forward-looking  statements to reflect events or circumstances  that arise after
the date hereof. Blonder Tongue’s actual results may differ from the anticipated
results or other  expectations  expressed in Blonder Tongue’s  “forward-looking”
statements.

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