SAN JOSE, Calif., June 15 /PRNewswire-FirstCall/ -- eOn
Communications Corporation(TM) (NASDAQ:EONC) (the "Company"), a
leading provider of telecommunications solutions, today reported
third quarter fiscal 2009 results. Net income for the quarter was
$60,000, or $0.02 per common share, compared to a net loss of
$376,000 or ($.14) per common share in the second quarter of fiscal
year 2009 and compared to a net loss of 1,204,000, or ($0.44) per
common share in the third quarter ended April 30, 2008. Revenue of
$2,465,000 (with no related party revenue) for the quarter ended
April 30, 2009 increased 89% compared to the previous quarter's
revenue of $1,307,000, and increased 63% or $951,000, from the
$1,514,000 (including related party revenue of $127,000) reported
in the third quarter of fiscal year 2008. Net loss for the nine
months ended April 30, 2009 was $450,000 or ($0.16) per common
share, compared to a net loss of $3,114,000 or ($1.14) per common
share for the nine months ended April 30, 2008. The net loss for
the nine months ended April 30, 2008 included a loss from
discontinued operations of $584,000 or ($0.21) per common share.
Revenue for the nine months ended April 30, 2009 was $5,556,000
(with no related party revenue), an increase of 3% compared to
$5,390,000 (including related party revenue of $343,000) for the
nine months ended April 30, 2008. eOn's operating results for the
quarter ended April 30, 2009 represent the first profitable quarter
since the third quarter ended April 30, 2007. Financial results for
the current fiscal year include the April 2009 net income of
$112,000 of Cortelco Systems Holding Corp., which was acquired on
April 1, 2009 Cash, cash equivalents and marketable securities
decreased 18% to $2,094,000 from $2,545,000 as of July 31, 2008
primarily as a result of funding the merger with Cortelco and
operating losses for the nine month period. The Company also today
announces the appointment of James W. Hopper as Chief Executive
Officer and Director and Lee M. Bowling as Chief Financial Officer
of the Company. James W. Hopper replaces David S. Lee who resigned
from the position of Chief Executive Officer. Lee M. Bowling
replaces Stephen R. Bowling who is leaving the Company, effective
today. James Hopper will fill Stephen Bowling's unexpired term as
Director of the Company. David Lee will continue as Chairman of the
Board of Directors of the Company. Prior to joining the Company,
Mr. Hopper has been President of Cortelco, Inc. since 1997. Prior
to 1997, he was Executive Vice President of Cortelco International,
Inc., President and Chief Executive Officer of CMC Industries, and
Executive Vice President and Plant Manager of Cortelco USA. Mr.
Hopper's experience also includes thirty-five years with ITT
Corporation where he held numerous senior management positions. He
has served on the Board of Directors of CMC Industries, Cortelco
Systems Puerto Rico, International Telecommunications Corp.,
Ringers, Inc., and KSS Mid-South, Inc. Mr. Hopper holds a B.B.A. in
Management and Economics from the University of Memphis. Prior to
joining the Company, Lee M. Bowling has been Vice President and
Chief Financial Officer of Cortelco, Inc. since 2004. Prior to
2004, Mr. Bowling was Controller of Cortelco, Inc from 1997 until
2004. His experience also includes various supervisory and
management positions with ITT Telecommunications and Telephone
Electronics Corporation. Mr. Bowling holds a B.S. in Accounting
from Mississippi State University. "We want to welcome Jim and Lee
to the eOn team," commented Mr. David S. Lee, Chairman of eOn's
Board of Directors. "Their broad base of experience, proven track
record, and past management services to the Company on a contract
basis since March 2008, will provide a seamless transition and
serve the Company well." Conference Call The Company will host a
conference call at 4:00 p.m. ET, June 17, 2009, to discuss third
quarter results. To hear the call, dial (800) 615-2900 and enter
access code 780002. A replay of the call will be posted to our
investor relations website,
http://www.eoncc.com/investor_relations.htm, shortly following the
call. About eOn Communications eOn Communications Corporation(TM)
is a global provider of innovative communications solutions. Backed
by over 20 years of telecommunications engineering expertise, our
solutions enable our customers to easily leverage advanced
technologies in order to communicate more effectively. To find out
more information about eOn Communications and its solutions, visit
the World Wide Web at http://www.eoncommunications.com/, or call
800-955-5321. Note: This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve risks
and uncertainties, including technical and competitive factors,
which could cause the Company's results and the timing of certain
events to differ materially from those discussed in the
forward-looking statements. Such risks are detailed in eOn
Communications Corporation's most recent Form 10-Q filing with the
Securities and Exchange Commission. eOn Communications Corporation,
the mark eOn, and eQueue are trademarks of eOn Communications
Corporation. eOn Communications Corporation Condensed Consolidated
Statements of Operations (Dollars in thousands, except per share
data) Unaudited Three Months Ended Nine Months Ended April 30,
April 30, ---------- ----------- 2009 2008 2009 2008 ----- -----
----- ----- REVENUE Third party revenue $2,465 $1,387 $5,556 $5,047
Related party revenue - 127 - 343 ----- ----- ----- ----- Net
revenue 2,465 1,514 5,556 5,390 ----- ----- ----- ----- COST OF
REVENUE Third party cost of revenue 1,356 635 2,872 2,103 Related
party cost of revenue - 116 - 316 ----- ----- ----- ----- Cost of
revenue 1,356 751 2,872 2,419 ----- ----- ----- ----- Gross profit
1,109 763 2,684 2,971 ----- ----- ----- ----- OPERATING EXPENSE
Selling, general and administrative 852 1,150 2,307 3,297 Research
and development 172 703 754 2,140 Other expense 26 123 87 160 -----
----- ----- ----- Total operating expense 1,050 1,976 3,148 5,597
----- ----- ----- ----- Income (loss) from continuing operations 59
(1,213) (464) (2,626) Interest income 1 16 14 96 ----- ----- -----
----- Income (loss) from continuing operations before income taxes
60 (1,197) (450) (2,530) Income tax expense - - - - ----- -----
----- ----- Income (loss) from continuing operations after income
taxes 60 (1,197) (450) (2,530) DISCONTINUED OPERATIONS Loss from
discontinued operations - (7) - (584) ----- ----- ----- ----- Loss
from discontinued operations - (7) - (584) ----- ----- ----- -----
NET INCOME (LOSS) $60 $(1,204) $(450) $(3,114) ===== ======= =====
======= Weighted average shares outstanding Basic 2,736 2,734 2,735
2,722 Diluted 2,736 2,734 2,735 2,722 Basic income (loss) per
share: From continuing operations $0.02 $(0.44) $(0.16) $(0.93)
From discontinued operations, net of tax - - - (0.21) ----- -----
----- ----- Basic income (loss) per share $0.02 $(0.44) $(0.16)
$(1.14) ===== ====== ====== ====== Diluted income (loss) per share:
From continuing operations $0.02 $(0.44) $(0.16) $(0.93) From
discontinued operations, net of tax - - - (0.21) ----- ----- -----
----- Diluted income (loss) per share $0.02 $(0.44) $(0.16) $(1.14)
===== ====== ====== ====== eOn Communications Corporation Condensed
Consolidated Balance Sheets (Dollars in thousands, except share and
per share amounts) April 30, July 31, 2009 2008 ------- -------
(unaudited) ASSETS Current assets: Cash and cash equivalents $1,394
$1,545 Marketable securities 700 1,000 Trade accounts receivable,
net of allowance of $341 and $680, respectively 2,392 932 Trade
accounts receivable - related party 3 84 Inventories 5,164 2,501
Deferred income taxes 212 - Prepaid and other current assets 294
177 ------- ------- Total current assets 10,159 6,239 Property and
equipment, net 251 176 Intangibles, net 295 251 Investments 1,207
900 Deferred income taxes 58 - Non-current assets - 88 -------
------- Total assets $11,970 $7,654 ======= ====== LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable
$725 $214 Trade accounts payable - related party - 126 Notes
payable 138 138 Accrued expenses and other 1,029 1,145 -------
------- Total current liabilities 1,892 1,623 Note payable 4,430 -
------- ------- Total liabilities 6,322 1,623 ------- -------
Commitments and contingencies Stockholders' equity: Preferred
stock, $0.001 par value, (10,000,000 shares authorized, no shares
issued and outstanding) - - Common stock, $0.005 par value
(10,000,000 shares authorized, 2,873,992 and 2,869,608 shares
issued, respectively) 14 14 Additional paid-in capital 56,000
55,931 Treasury stock, at cost (139,580 shares) (1,503) (1,502)
Accumulated deficit (48,967) (48,517) Accumulated other
comprehensive income 104 105 ------- ------- Total stockholders'
equity 5,648 6,031 ------- ------- Total liabilities and
stockholders' equity $11,970 $7,654 ======= =======
http://www.newscom.com/cgi-bin/prnh/20010517/EONLOGODATASOURCE: eOn
Communications Corporation CONTACT: Investor Relations for eOn
Communications, +1-800-955-5321, Web Site:
http://www.eoncommunications.com/
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