Exhibit 99.1
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 | ||||