EX-99.1 2 dex991.htm PRESS RELEASE DATED DECEMBER 15, 2008 Press release dated December 15, 2008

Exhibit 99.1

LOGO

Investor Relations

eOn Communications

800-955-5321

investorrelations@eoncc.com

For Release 8:30 PM ET, December 15, 2008

eOn Communications Reports First Quarter Results

SAN JOSE, CA (December 15, 2008) – eOn Communications Corporation™ (NASDAQ: EONC), a leading provider of telecommunications solutions, today reported first quarter fiscal 2009 results.

Net loss for the quarter was $134,000, or ($0.05) per common share, compared to a net loss of $911,000, or $(0.33) per common share in the quarter ended October 31, 2007. Revenue for the quarter was $1,784,000 (with no related party revenue), a decrease of 26% compared to $2,396,000 (including related party revenue of $128,000) for the quarter ended October 31, 2007.

Cash, cash equivalents and marketable securities decreased 4% to $2,434,000 from $2,545,000 as of July 31, 2008 primarily as a result of funding operating losses for the three month period.

On December 12, 2008, the Company announced that it had executed an amended and restated Agreement and Plan of Merger to acquire Cortelco Systems Holding Corp. (“Cortelco”) for up to $11,000,000 in cash, with $500,000 to be paid at closing and the remainder to be paid in future quarters based upon the level of Cortelco’s adjusted income for such quarters. On an unaudited basis, Cortelco earned $595,000 in income before taxes on revenues (excluding those earned from eOn) of $4,290,000 for the three month period ended October 31, 2008.

Several steps are required before the acquisition can be completed and there is no guarantee that the transaction will close. The proposed merger may be terminated if the conditions to closing are not fulfilled, in the event of a breach of the agreement by either party, or upon mutual agreement of the parties.

About eOn Communications™

eOn Communications Corporation™ 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 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

(Dollars in thousands, except per share data)

Unaudited

 

     Three Months Ended
October 31,
 
     2008     2007  

REVENUE

    

Third party revenue

   $ 1,784     $ 2,268  

Related party revenue

     —         128  
                

Net revenue

     1,784       2,396  
                

COST OF REVENUE

    

Third party cost of revenue

     813       892  

Related party cost of revenue

     —         120  
                

Cost of revenue

     813       1,012  
                

Gross profit

     971       1,384  
                

OPERATING EXPENSE

    

Selling, general and administrative

     767       1,040  

Research and development

     305       757  

Other expense

     44       26  
                

Total operating expense

     1,116       1,823  
                

Loss from continuing operations

     (145 )     (439 )

Interest income

     11       46  
                

Loss from continuing operations before income taxes

     (134 )     (393 )

Income tax expense

     —         —    
                

Loss from continuing operations after income taxes

     (134 )     (393 )

DISCONTINUED OPERATIONS

    

Loss from discontinued operations

     —         (518 )
                

Loss from discontinued operations

     —         (518 )
                

NET LOSS

   $ (134 )   $ (911 )
                

Weighted average shares outstanding

    

Basic and diluted

     2,735       2,716  

Basic and diluted loss per share:

    

From continuing operations

   $ (0.05 )   $ (0.14 )

From discontinued operations, net of tax

     —         (0.19 )
                

Basic and diluted loss per share

   $ (0.05 )   $ (0.33 )
                


eOn Communications Corporation

Condensed Consolidated Balance Sheets

(Dollars in thousands, except share and per share amounts)

 

     October 31,
2008
    July 31,
2008
 
     (unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 1,434     $ 1,545  

Marketable securities

     1,000       1,000  

Trade accounts receivable, net of allowance of $731 and $680, respectively

     1,145       932  

Trade accounts receivable - related party

     73       84  

Inventories

     2,257       2,501  

Prepaid and other current assets

     65       177  
                

Total current assets

     5,974       6,239  

Property and equipment, net

     135       176  

Intangibles, net

     230       251  

Investments

     1,146       900  

Non-current assets

     110       88  
                

Total assets

   $ 7,595     $ 7,654  
                

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Trade accounts payable

   $ 237     $ 214  

Trade accounts payable - related party

     174       126  

Notes payable

     196       138  

Accrued expenses and other

     1,035       1,145  
                

Total current liabilities

     1,642       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, 2,870,888 and 2,869,608 shares issued, respectively)

     14       14  

Additional paid-in capital

     55,988       55,931  

Treasury stock, at cost (135,380 shares)

     (1,502 )     (1,502 )

Accumulated deficit

     (48,651 )     (48,517 )

Accumulated other comprehensive income

     104       105  
                

Total stockholders’ equity

     5,953       6,031  
                

Total liabilities and stockholders’ equity

   $ 7,595     $ 7,654  
                

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