Exhibit 99.1
Investor Relations
eOn Communications Corporation
800-955-5321
investorrelations@eoncc.com
For Release 4:30 PM ET, December 13, 2007
eOn Communications Reports First Quarter Fiscal Year
Financial Results
SAN JOSE, CA(December 13, 2007) – eOn Communications Corporation™ (NASDAQ: EONC), a leading provider of telecommunications solutions, today reported first quarter fiscal year 2008 results.
Net loss for the quarter was $911,000 or ($0.07) per common share, compared to net income of $40,000 or less than $0.01 per common share in the quarter ended October 31, 2006. For the quarter, net income included a loss from continuing operations of $393,000 and loss from the discontinued operations of eOn IP Voice, Inc of $518,000. Revenues for the quarter were $2,396,000, a decrease of 11% compared to $2,708,000 for the quarter ended October 31, 2006.
Cash and cash equivalents and short-term marketable securities decreased 25% to $4,246,000 from $5,656,000 as of July 31, 2007, primarily as a result of the $900,000 investment in Symbio Group and funding operating losses during the quarter.
“Although we did not meet our financial objectives, we have made significant strides in creating future growth opportunities for the Company, particularly in China.” stated David Lee, eOn’s chairman and chief executive officer. “Our recent investments in Symbio are expected to lead to new contact center revenues.”
Conference Call
The Company will host a conference call at 4:45 p.m. ET, December 13, 2007, to discuss first quarter fiscal year 2008 results. To hear the call, dial 800-595-9010 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 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 and Comprehensive (Loss) Income
(Amounts in thousands, except per share data)
(Unaudited)
| | | | | | | | |
| | | Three Months Ended
October 31, | |
| | | 2007 | | | 2006 | |
REVENUE | | | | | | | | |
Third party revenue | | $ | 2,268 | | | $ | 2,708 | |
Related party revenue | | | 128 | | | | — | |
| | | | | | | | |
Net revenue | | | 2,396 | | | | 2,708 | |
| | | | | | | | |
| | |
COST OF REVENUE | | | | | | | | |
Third party cost of revenue | | | 892 | | | | 943 | |
Related party cost of revenue | | | 120 | | | | — | |
| | | | | | | | |
Cost of revenue | | | 1,012 | | | | 943 | |
| | | | | | | | |
Gross profit | | | 1,384 | | | | 1,765 | |
| | | | | | | | |
| | |
OPERATING EXPENSE | | | | | | | | |
Selling, general and administrative | | | 1,040 | | | | 1,057 | |
Research and development | | | 757 | | | | 742 | |
Other expense | | | 26 | | | | 6 | |
| | | | | | | | |
Total operating expense | | | 1,823 | | | | 1,805 | |
| | | | | | | | |
Loss from continuing operations | | | (439 | ) | | | (40 | ) |
| | |
Interest income | | | 46 | | | | 80 | |
| | | | | | | | |
(Loss) income from continuing operations before income taxes | | | (393 | ) | | | 40 | |
| | |
Income tax expense | | | — | | | | — | |
| | | | | | | | |
(Loss) income from continuing operations after income taxes | | | (393 | ) | | | 40 | |
| | |
DISCONTINUED OPERATIONS | | | | | | | | |
Loss from discontinued operations, net of tax of $0 | | | (518 | ) | | | — | |
| | | | | | | | |
Loss from discontinued operations | | | (518 | ) | | | — | |
| | | | | | | | |
Net (loss) income | | $ | (911 | ) | | $ | 40 | |
| | | | | | | | |
| | |
COMPREHENSIVE INCOME (LOSS) | | | | | | | | |
Net (loss) income | | $ | (911 | ) | | $ | 40 | |
Foreign currency translation adjustment | | | 38 | | | | — | |
| | | | | | | | |
Comprehensive (loss) income | | $ | (873 | ) | | $ | 40 | |
| | | | | | | | |
| | |
Weighted average shares outstanding: | | | | | | | | |
Basic | | | 13,580 | | | | 13,547 | |
Diluted | | | 13,580 | | | | 13,725 | |
| | |
Basic (loss) income per share: | | | | | | | | |
From continuing operations after income taxes | | $ | (0.03 | ) | | $ | * | |
From discontinued operations, net of tax and minority interest | | | (0.04 | ) | | | — | |
| | | | | | | | |
Basic (loss) income per share | | $ | (0.07 | ) | | $ | * | |
| | | | | | | | |
| | |
Diluted (loss) income per share: | | | | | | | | |
From continuing operations after income taxes | | $ | (0.03 | ) | | $ | * | |
From discontinued operations, net of tax and minority interest | | | (0.04 | ) | | | — | |
| | | | | | | | |
Diluted (loss) income per share | | $ | (0.07 | ) | | $ | * | |
| | | | | | | | |
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eOn Communications Corporation
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
| | | | | | | | |
| | | October 31,
2007 | | | July 31,
2007 | |
| | | (unaudited) | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 1,596 | | | $ | 2,256 | |
Marketable securities | | | 2,650 | | | | 3,400 | |
Trade accounts receivable, net of allowance of $672 and $694, respectively | | | 1,266 | | | | 1,781 | |
Trade accounts receivable—related party | | | 95 | | | | 117 | |
Inventories | | | 2,561 | | | | 2,348 | |
Prepaid and other current assets | | | 191 | | | | 118 | |
Current assets of discontinued operations | | | — | | | | 119 | |
| | | | | | | | |
Total current assets | | | 8,359 | | | | 10,139 | |
Property and equipment, net | | | 347 | | | | 298 | |
Intangibles, net | | | 313 | | | | 334 | |
Investments | | | 1,200 | | | | 300 | |
Non-current assets of discontinued operations | | | 73 | | | | 135 | |
| | | | | | | | |
Total assets | | $ | 10,292 | | | $ | 11,206 | |
| | | | | | | | |
| | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Trade accounts payable | | $ | 484 | | | $ | 432 | |
Trade accounts payable—related party | | | 139 | | | | 337 | |
Accrued expenses and other | | | 1,260 | | | | 1,205 | |
Current liabilities of discontinued operations | | | 15 | | | | 16 | |
| | | | | | | | |
Total current liabilities | | | 1,898 | | | | 1,990 | |
| | |
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, 14,262,694 and 14,247,029 shares issued, respectively) | | | 14 | | | | 14 | |
Additional paid-in capital | | | 55,820 | | | | 55,769 | |
Treasury stock, at cost (676,900 shares) | | | (1,502 | ) | | | (1,502 | ) |
Accumulated deficit | | | (45,976 | ) | | | (45,065 | ) |
Accumulated other comprehensive income | | | 38 | | | | — | |
| | | | | | | | |
Total stockholders’ equity | | | 8,394 | | | | 9,216 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 10,292 | | | $ | 11,206 | |
| | | | | | | | |
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