EXHIBIT 99.1
Investor Relations
eOn Communications
800-873-3194
investorrelations@eoncc.com
eOn Communications Reports Profitable First Quarter 2005 Results
ATLANTA(December 9, 2004) – 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 fiscal 2005. Revenues for the quarter were $6,467,000 compared with $6,183,000 in the 4th quarter of 2004 and $5,039,000 in the same period last year.
Net income for the quarter was $98,000, or $0.01 per common share, compared with a net loss of $400,000, or ($0.03) per common share in the 4th quarter of 2004 and net income of $330,000, or $0.03 per share in the same period last year.
“We continue to be encouraged by our improving performance, and are pleased to announce quarterly profitable results” said David Lee, eOn’s chairman and chief executive officer.
During the quarter the Company secured orders from customers of all target market segments. Some of these customers included Metanet, a provider of outsource contact center services in Korea; 95 Teleweb of Beijing, China, Lexicon Marketing of Los Angeles, CA and from the US Department of Treasury. Follow-on orders were received from long time eOn customers CallTech, Circuit City, the US Coast Guard, Petsmart as well as from distribution partners Northrup Grumman, Frequentis USA, and Professional Teledata.
Lee concluded, “We remain committed to exercising financial discipline and executing our business strategy to deliver continued improvement in revenue and earnings throughout the 2005 fiscal year.”
Conference Call
The Company will host a conference call at 4:45 p.m. EST today, December 9, 2004, to discuss its first quarter fiscal 2005 results. To hear the call, dial (800) 967-7141 or visit our investor relations website atinvestor.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
Statements of Operations (Unaudited)
For the Three Months Ended October 31, 2004 and 2003
(Dollars in thousands, except per share data)
Three Months Ended October 31, | ||||||||
2004 | 2003 | |||||||
Net revenues | $ | 6,467 | $ | 5,039 | ||||
Cost of revenues | 3,668 | 2,100 | ||||||
Gross profit | 2,799 | 2,939 | ||||||
Operating expenses: | ||||||||
Selling, general, and administrative | 1,845 | 1,918 | ||||||
Research and development | 866 | 676 | ||||||
Total operating expenses | 2,711 | 2,594 | ||||||
Income (loss) from operations | 88 | 345 | ||||||
Interest income | (36 | ) | (16 | ) | ||||
Interest expense | — | 9 | ||||||
Other expense, net | 9 | 22 | ||||||
Income (loss) before income tax and minority interest | 115 | 330 | ||||||
Income tax expense | 4 | — | ||||||
Net income (loss) before minority interest | 111 | 330 | ||||||
Minority Interest | 13 | — | ||||||
Net Income (loss) | $ | 98 | $ | 330 | ||||
Net income (loss) per common share | ||||||||
Basic and diluted: | $ | 0.01 | $ | 0.03 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 12,820 | 12,231 | ||||||
Diluted | 12,913 | 12,785 |
eOn Communications Corporation
Balance Sheets
October 31, 2004 and July 31, 2004
(Dollars in thousands)
October 31, 2004 | July 31, 2004 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,552 | $ | 4,679 | ||||
Marketable securities | 4,200 | 4,200 | ||||||
Trade accounts receivable, net – third parties | 7,305 | 6,656 | ||||||
Trade accounts receivable – related parties | 566 | 615 | ||||||
Notes Receivable | 390 | 528 | ||||||
Inventories | 2,962 | 2,733 | ||||||
Other current assets | 2,527 | 1,913 | ||||||
Total current assets | 21,502 | 21,324 | ||||||
Property and equipment, net | 885 | 971 | ||||||
Total | $ | 22,387 | $ | 22,295 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 5,067 | $ | 5,431 | ||||
Trade accounts payable – related parties | 2,071 | 2,049 | ||||||
Note payable – current | 768 | 767 | ||||||
Deferred acquisition payment | 1,038 | 1,078 | ||||||
Accrued expenses and other | 2,625 | 2,284 | ||||||
Total current liabilities | 11,569 | 11,609 | ||||||
Commitments and contingencies | — | — | ||||||
Minority interest | 1,242 | 1,227 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 13 | 13 | ||||||
Additional paid-in capital | 54,388 | 54,369 | ||||||
Treasury stock | (1,502 | ) | (1,502 | ) | ||||
Accumulated deficit | (43,323 | ) | (43,421 | ) | ||||
Total stockholders’ equity | 9,576 | 9,459 | ||||||
Total | $ | 22,387 | $ | 22,295 | ||||