EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO

 

Investor Relations

eOn Communications

800-873-3194

investorrelations@eoncc.com

 

For Release 4:30 PM EST, June 13, 2005

 

eOn Communications Reports Third Quarter Fiscal 2005 Results

 

ATLANTA (June 13, 2005) – eOn Communications Corporation (NASDAQ: EONC), a leading provider of unified voice, e-mail and web-based communications solutions, today reported financial results for the third fiscal quarter ended April 30, 2005. Revenues for the quarter were $4,721,000, an increase of 70.4% compared with $2,770,000 for the same period last year. Net loss was $696,000, or $0.05 per common share, a decrease of 26.4% compared with a net loss of $944,000 or $0.07 per share in the quarter ended April 30, 2004.

 

For the nine months ended April 30, 2005, revenues increased 41.4% to $16,641,000 compared to $11,767,000 in the nine months ended April 30, 2004. Net loss for the nine months ended April 30, 2005 was $1,126,000, or $0.09 per common share, 213.7% higher than the net loss of $527,000, or $0.04 per common share in the prior year.

 

The company’s subsidiary in China had revenues of $1,779,000 for the quarter ended April 30, 2005 and $6,575,000 for the nine months ended April 30, 2005. Net loss after minority interest for the quarter ended April 30, 2005 was $79,000 and net profit after minority interest for the nine months ended April 30, 2005 was $85,000.

 

“This was a difficult quarter for us.” stated David Lee, eOn’s chairman and chief executive officer. “When we launched our Asian strategy we knew there would be an investment period. Although we are encouraged by the level of interest and activity we are experiencing there, it is taking longer for our marketing and sales efforts to produce results than earlier anticipated.”

 

During the quarter the company announced a partnership with M1 Global, a provider of Business Transformation Outsourcing technology and services to create next-generation customer interaction center products and services. The partnership links eOn’s proven customer interaction management platform with M1’s next-generation business process management platform to drive a new level of integration between customer channels and business processes, resulting in improved efficiency, flexibility and affordability.

 

The company also secured its first eQueue order from the US Department of Defense for an eQueue system for the US Southern Command, a.k.a. SOUTHCOM. The eQueue was selected

 

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because of its ability to meet US DOD Defense Switch Network (DSN) security and reliability standards. Other orders received by company during the quarter include M1 Global, Metanet Deloitte of Seoul, Korea, US Coast Guard, US Customs, CallTech, and Globe Life Insurance.

 

Conference Call

 

The company will host a conference call at 4:45 p.m. EST today, June 13, 2005, to discuss third quarter results. To hear the call, dial 800-361-0912 or visit our investor relations website at investor.eoncc.com. A replay of the call will be posted to our investor relations website shortly following the call.

 

About eOn Communications

 

eOn Communications Corporation is a leading provider of unified voice, e-mail and Web-based communications systems for customer contact centers and general business applications. eOn helps enterprises communicate more effectively with customers, convert inquiries into sales, and increase customer satisfaction and loyalty. To find out more information about eOn Communications and its solutions, visit the World Wide Web at 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.

 

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eOn Communications Corporation

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)

 

     Three Months Ended     Nine Months Ended  
     April 30,

    April 30,

 
     2005

    2004

    2005

    2004

 

REVENUE

                                

Net third party revenue

   $ 3,991     $ 2,770     $ 14,857     $ 11,767  

Net related party revenue

     730       —         1,784       —    
    


 


 


 


Net revenue

     4,721       2,770       16,641       11,767  

COST OF REVENUE

                                

Third party cost of revenue

     2,000       1,259       7,972       4,950  

Related party cost of revenue

     574       —         1,414       —    
    


 


 


 


Cost of revenue

     2,574       1,259       9,386       4,950  
    


 


 


 


Gross profit

     2,147       1,511       7,255       6,817  

OPERATING EXPENSE

                                

Selling, general and administrative

     2,220       1,598       6,037       5,058  

Research and development

     771       855       2,412       2,248  
    


 


 


 


Total operating expense

     2,991       2,453       8,449       7,306  
    


 


 


 


Loss from operations

     (844 )     (942 )     (1,194 )     (489 )

Interest income

     33       15       104       47  

Interest expense

     —         (9 )     —         (26 )

Other income (expense), net

     29       (8 )     59       (59 )
    


 


 


 


Loss before income taxes and minority interest

     (782 )     (944 )     (1,031 )     (527 )

Income tax benefit (expense)

     19       —         (23 )     —    
    


 


 


 


Loss before minority interest

     (763 )     (944 )     (1,054 )     (527 )

Minority interest

     67       —         (72 )     —    
    


 


 


 


Net loss

   $ (696 )   $ (944 )   $ (1,126 )   $ (527 )
    


 


 


 


Basic and diluted weighted average shares outstanding

     12,859,000       12,635,000       12,838,000       12,444,000  
    


 


 


 


Basic and diluted loss per share

   $ (0.05 )   $ (0.07 )   $ (0.09 )   $ (0.04 )
    


 


 


 


 

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eOn Communications Corporation

Condensed Consolidated Balance Sheets

(Dollars in thousands, except per share data)

 

     April 30,
2005


    July 31,
2004


 
     (unaudited)        

ASSETS

                

Current Assets:

                

Cash and cash equivalents

   $ 4,303     $ 4,679  

Marketable securities

     3,600       4,200  

Trade accounts receivable, net of allowance of $892 and $774, respectively

     4,151       6,656  

Trade accounts receivable - related party, net of allowance of $92 and $18 respectively

     1,721       615  

Notes receivable

     401       528  

Inventories

     2,896       2,733  

Prepaid and other current assets

     890       1,913  
    


 


Total current Assets

     17,962       21,324  

Property and equipment, net

     798       971  
    


 


Total Assets

   $ 18,760     $ 22,295  
    


 


LIABILITIES AND STOCKHOLDERS’ EQUITY                 

Current liabilities:

                

Trade accounts payable

   $ 3,439     $ 5,431  

Trade accounts payable - related party

     2,117       2,049  

Note payable

     236       767  

Deferred acquisition payment

     1,038       1,078  

Accrued expenses and other

     2,230       2,284  
    


 


Total current liabilities

     9,060       11,609  

Minority interest

     1,299       1,227  

Commitments and contingencies

     —         —    

Stockholders’ equity:

                

Preferred stock, $0.001 par value, (10,000,000 shares authorized, no shares issued and outstanding)

                

Common stock, $0.001 par value (50,000,000 shares authorized, 13,562,459 and 13,487,160 shares issued and outstanding 2005 and 2004, respectively)

     13       13  

Additional paid-in capital

     54,437       54,369  

Treasury stock, at cost (676,900 shares)

     (1,502 )     (1,502 )

Accumulated deficit

     (44,547 )     (43,421 )
    


 


Total stockholders’ equity

     8,401       9,459  
    


 


Total liabilities and stockholders’ equity

   $ 18,760     $ 22,295