EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

Investor Relations

eOn Communications

800-955-5321

investorrelations@eoncc.com

For Release 3:30 PM ET, June 13, 2011

 

eOn Communications Reports Third Quarter and Year-To-Date Results

CORINTH, MS (June 13, 2011) – eOn Communications Corporation™ (NASDAQ: EONC) (the “Company”), a leading provider of telecommunications solutions, today reported third fiscal quarter and year-to-date results for the period ended April 30, 2011.

Third quarter revenue increased 57% to $5,561,000 from $3,535,000 in the third quarter of last year, primarily due to the inclusion of Cortelco Systems Puerto Rico revenue in which majority ownership was acquired on June 9, 2010. Net income for the quarter was $131,000 or $0.05 per common share compared to net loss of $47,000 or $0.02 per common share in the quarter ended April 30, 2010. Operating results were favorably impacted by $59,000 of imputed interest income due to the amortization of the difference between the face value of the contingent obligation to the former Cortelco shareholders and the discounted present value of the note payable recorded on the balance sheet. Interest expense of $127,000 was offset by $186,000 of interest income resulting from changes in the estimated timing of future interest payments. Net income from continuing operations for the quarter excluding the impact of the imputed interest income was $72,000 or $0.03 per common share.

Revenue for the nine months was $17,111,000, an increase of 49% compared to $11,455,000 for the nine months ended April 30, 2010. Net loss for the nine months was $321,000 or $0.11 per common share, compared to a net income of $84,000 or $0.03 per common share for the nine months ended April 30, 2010. The net loss for the nine months ended April 30, 2011 included a loss from discontinued operations of $232,000 or $0.08 per common share. For the nine months ended April 30, 2011 excluding the impact of $229,000 in imputed interest expense, net income from continuing operations was $140,000 or $0.05 per common share.

Net loss for the nine months in the Company’s Communications and Services segment was partially offset by net income of $885,000 by the Company’s 100% owed subsidiary, Cortelco Systems Holding Company, and net income of $88,000 by the Company’s majority owned subsidiary, Cortelco Systems Puerto Rico.

Mr. David Lee, chairman of eOn’s Board of Directors noted, “Our favorable results for the quarter reflect the impact of our continuing cost reduction initiatives and we are striving to optimize revenue during these slow economic times.”

 

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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 leverage advanced technologies in order to communicate more effectively. To find out more information about eOn Communications and its solutions, visit 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-K 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
April 30,
    Nine Months Ended
April 30,
 
     2011     2010     2011     2010  

REVENUE

        

Net revenue

   $ 5,561      $ 3,535      $ 17,111      $ 11,455   
                                

COST OF REVENUE

        

Cost of revenue

     3,882        2,229        12,050        7,244   
                                

Gross profit

     1,679        1,306        5,061        4,211   
                                

OPERATING EXPENSE

        

Selling, general and administrative

     1,413        995        4,405        3,173   

Research and development

     121        141        391        395   

Other expenses

     (1     22        19        47   
                                

Total operating expense

     1,533        1,158        4,815        3,615   
                                

Income from operations

     146        148        246        596   

OTHER INCOME (EXPENSE)

        

Interest income (expense), net

     56        (149     (238     (499

Equity in earnings of unconsolidated investee

     —          2        —          51   
                                

Total other income (expense)

     56        (147     (238     (448
                                

Income before income taxes

     202        1        8        148   

Income tax expense (benefit)

     24        2        24        (19
                                

Net income (loss) from continuing operations

     178        (1     (16     167   

DISCONTINUED OPERATIONS

        

Loss from discontinued operations

     —          (46     (232     (83
                                

Net income (loss)

     178        (47     (248     84   

Less: Net income attributable to noncontrolling interest

     47        —          73        —     
                                

Net income (loss) attributable to common shareholders

   $ 131      $ (47   $ (321   $ 84   
                                

COMPREHENSIVE (LOSS) INCOME

        

Net income (loss)

   $ 131      $ (47   $ (321   $ 84   

Unrealized gains on available-for-sale securities

     —          1        —          5   

Foreign currency translation adjustment

     —          —          2        —     
                                

Comprehensive income (loss)

   $ 131      $ (46   $ (319   $ 89   
                                

Weighted average shares outstanding

        

Basic

     2,862        2,756        2,859        2,743   
                                

Diluted

     2,864        2,756        2,859        2,745   
                                

Basic income (loss) per share:

        

From continuing operations

   $ 0.05      $      $ (0.03   $ 0.06   

From discontinued operations

     —          (0.02     (0.08     (0.03
                                

Basic income (loss) per share

   $ 0.05      $ (0.02   $ (0.11   $ 0.03   
                                

Diluted income (loss) per share:

        

From continuing operations

   $ 0.05      $      $ (0.03   $ 0.06   

From discontinued operations

     —          (0.02     (0.08     (0.03
                                

Diluted income (loss) per share

   $ 0.05      $ (0.02   $ (0.11   $ 0.03   
                                

 

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eOn Communications Corporation

Condensed Consolidated Balance Sheets

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

 

     April 30,
2011
    July 31,
2010
 
     (unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 1,847      $ 4,108   

Trade accounts receivable, net of allowance of $339 and $235, respectively

     4,040        4,168   

Trade accounts receivable—related party

     —          8   

Inventories

     5,798        4,948   

Prepaid and other current assets

     316        257   
                

Total current assets

     12,001        13,489   

Property and equipment, net

     236        279   

Intangibles, net

     927        847   

Investments

     990        990   
                

Total assets

   $ 14,154      $ 15,605   
                

LIABILITIES AND STOCKHOLDERS' EQUITY

    

Current liabilities:

    

Trade accounts payable

   $ 2,181      $ 2,361   

Notes payable—related party

     594        674   

Accrued expenses and other

     1,520        1,977   
                

Total current liabilities

     4,295        5,012   

Notes payable—related party, net of current portion

     3,104        3,647   
                

Total liabilities

     7,399        8,659   
                

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, 3,003,985 and 2,989,269 shares issued, respectively)

     15        15   

Additional paid-in capital

     56,273        56,269   

Treasury stock, at cost (139,580 shares)

     (1,503     (1,503

Accumulated deficit

     (48,710     (48,389

Accumulated other comprehensive income

     112        110   
                

Total eOn Communications Corp. stockholders' equity

     6,187        6,502   

Noncontrolling interest

     568        444   
                

Total stockholders' equity

     6,755        6,946   
                

Total liabilities and stockholders' equity

   $ 14,154      $ 15,605   
                

 

 

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