EXHIBIT 99.1
Investor Relations
eOn Communications
800-873-3194
investorrelations@eoncc.com
eOn Communications Reports Third Consecutive Profitable Quarter
ATLANTA(November 18, 2003) – eOn Communications Corporation™ (NASDAQ: EONC), a leading provider of unified voice, e-mail and Web-based communications solutions, today reported financial results for the first quarter ended October 31, 2003.
Revenues for the quarter increased 42% to $5,039,000, compared with $3,555,000 for the same period last year. Net income for the first quarter was $330,000, or $0.03 per share, compared with a net loss of $1,262,000, or ($0.10) per share, in the prior-year period. Cash flow from operations for the quarter was $283,000, with total cash and investments increasing to $7,502,000 at October 31, 2003.
During the first quarter, the Company finalized and began fulfillment of a contract with Frequentis USA, Inc. to provide an advanced conferencing solution at the FAA’s main command center in Herndon, VA. The Company also secured orders from several new customers, including Arcturus Corporation and Globe Life and Accident Insurance Company, and reached an agreement to deploy the first eQueue system in China. Follow-on business included orders from Northrop Grumman, PETsMART, Circuit City, Proxy Communications, and Alpine Access. The Company also announced plans to acquire NeoMecca, Inc., a leading call center solution provider.
“With the first quarter results, eOn has now been profitable for three consecutive quarters,” said David S. Lee, eOn’s president and chief executive officer. “During this time, we have also made major progress on our international initiatives. The pending acquisition of NeoMecca gives us a firmer foothold to capture contact center market share in South Korea, and we are now positioned to exploit growth opportunities in Asia – especially China.”
The company also announced the retirement of chief financial officer Lanny Lambert. “Lanny and I have had a long and successful relationship,” commented Lee. “I asked Lanny to come out of retirement a few years ago to assist with the restructuring of eOn, and he has done an outstanding job improving eOn’s overall financial position. We at eOn thank him for his
efforts and wish him much happiness as he once again enters retirement.” Stephen Bowling, former president of eOn and a member of the board of directors, has assumed the role of chief financial officer.
Lee concluded, “We will continue our efforts to grow the Company and improve our year-over-year results. This is an exciting time for eOn with the pending acquisition of NeoMecca and our expansion into China. While we enter into a seasonal period for our business, we will maintain our focus on the long-term growth of our eQueue business.”
Conference Call and Webcast
The company will host a conference call at 11:00 a.m. EST tomorrow, November 19, 2003, to discuss its first quarter results. To hear the call, dial (719) 457-2636 or visit our investor relations web site atinvestor.eoncc.com. A replay of the call will be posted to our investor relations web site shortly following the call. A recording will also be available no later than noon on Friday, November 21, 2003, by direct dial at (678) 337-2001. These recordings will be available through December 5, 2003.
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-K filing with the Securities and Exchange Commission.
eOn Communications Corporation, the mark eOn, and eQueue are trademarks of eOn Communications Corporation.
# # #
eOn Communications Corporation
Statements of Operations (Unaudited)
For the Three Months Ended October 31, 2003 and 2002
(Dollars in thousands, except per share data)
Three Months Ended October 31, | ||||||||
2003 | 2002 | |||||||
Net revenues | $ | 5,039 | $ | 3,555 | ||||
Cost of revenues | 2,100 | 1,770 | ||||||
Gross profit | 2,939 | 1,785 | ||||||
Operating expenses: | ||||||||
Selling, general, and administrative | 1,918 | 2,300 | ||||||
Research and development | 676 | 747 | ||||||
Total operating expenses | 2,594 | 3,047 | ||||||
Income (loss) from operations | 345 | (1,262 | ) | |||||
Interest income | (16 | ) | (37 | ) | ||||
Interest expense | 9 | 9 | ||||||
Other expense, net | 22 | 28 | ||||||
Income (loss) before income tax expense | 330 | (1,262 | ) | |||||
Income tax expense | — | — | ||||||
Net income (loss) | $ | 330 | $ | (1,262 | ) | |||
Net income (loss) per common share | ||||||||
Basic and diluted: | $ | 0.03 | $ | (0.10 | ) | |||
Weighted average shares outstanding: | ||||||||
Basic | 12,231 | 12,049 | ||||||
Diluted | 12,785 | 12,049 |
eOn Communications Corporation
Balance Sheets
October 31 and July 31, 2003
(Dollars in thousands)
Oct 31, 2003 | July 31, 2003 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,302 | $ | 3,221 | ||||
Marketable securities | 4,200 | 4,200 | ||||||
Trade accounts receivable, net | 3,650 | 2,849 | ||||||
Inventories | 1,806 | 1,879 | ||||||
Other current assets | 96 | 134 | ||||||
Total current assets | 13,054 | 12,283 | ||||||
Property and equipment, net | 1,058 | 1,149 | ||||||
Intangible assets, net | 1 | 2 | ||||||
Total | $ | 14,113 | $ | 13,434 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 1,670 | $ | 1,240 | ||||
Payable to affiliate | 72 | 121 | ||||||
Note payable – current | 447 | 613 | ||||||
Accrued expenses and other | 2,094 | 1,996 | ||||||
Total current liabilities | 4,283 | 3,970 | ||||||
Commitments and contingencies | — | — | ||||||
Stockholders’ equity: | ||||||||
Common stock | 12 | 12 | ||||||
Additional paid-in capital | 53,483 | 53,447 | ||||||
Treasury stock | (1,502 | ) | (1,502 | ) | ||||
Accumulated deficit | (42,163 | ) | (42,493 | ) | ||||
Total stockholders’ equity | 9,830 | 9,464 | ||||||
Total | $ | 14,113 | $ | 13,434 | ||||