Exhibit 99.1
Investor Relations
eOn Communications
800-955-5321
investorrelations@eoncc.com
For Release 4:30 PM ET, June 16, 2008
eOn Communications Reports Third Quarter Results
SAN JOSE, CA(June 16, 2008) – eOn Communications Corporation™ (NASDAQ: EONC), a leading provider of telecommunications solutions, today reported third quarter fiscal 2008 results.
Net loss for the quarter was $1,204,000, or ($0.44) per common share, compared to a net income of $20,000, or $0.00 per common share in the quarter ended April 30, 2007. The loss for this quarter included $408,000 from the closure of India operations and associated severance costs. Revenue for the quarter was $1,514,000 (including related party revenue of $127,000) compared to $3,554,000 (including related party revenue of $195,000) for the quarter ended April 30, 2007.
Net loss for the nine months was $3,114,000 or ($1.14) per common share, compared to a net loss of $955,000 or ($0.36) per common share for the nine months ended April 30, 2007. The net loss for the nine months ended April 30, 2008 included a loss from discontinued operations of $584,000 or ($0.21) per common share. Revenue for the nine months was $5,390,000 (including related party revenue of $343,000) a decrease of 30% compared to $7,749,000 (including related party revenue of $363,000) for the nine months ended April 30, 2007.
Cash, cash equivalents and marketable securities decreased 76% to $1,360,000 from $5,656,000 as of July 31, 2007 primarily as a result of funding operating losses for the nine month period, the $900,000 investment in the Symbio Group and reclassification of $925,000 in auction rate marketable securities to long term
“We are very disappointed with these results and are continuing restructuring to improve the Company’s performance and return us to profitability,” stated David Lee, eOn’s chairman and chief executive officer.
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.
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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
(Dollars in thousands, except per share data)
Unaudited
Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
REVENUE | ||||||||||||||||
Third party revenue | $ | 1,387 | $ | 3,359 | $ | 5,047 | $ | 7,386 | ||||||||
Related party revenue | 127 | 195 | 343 | 363 | ||||||||||||
Net revenue | 1,514 | 3,554 | 5,390 | 7,749 | ||||||||||||
COST OF REVENUE | ||||||||||||||||
Third party cost of revenue | 635 | 1,487 | 2,103 | 2,944 | ||||||||||||
Related party cost of revenue | 116 | 180 | 316 | 336 | ||||||||||||
Cost of revenue | 751 | 1,667 | 2,419 | 3,280 | ||||||||||||
Gross profit | 763 | 1,887 | 2,971 | 4,469 | ||||||||||||
OPERATING EXPENSE | ||||||||||||||||
Selling, general and administrative | 1,150 | 1,086 | 3,297 | 3,263 | ||||||||||||
Research and development | 703 | 715 | 2,140 | 2,225 | ||||||||||||
Other expense | 123 | (2 | ) | 160 | 28 | |||||||||||
Total operating expense | 1,976 | 1,799 | 5,597 | 5,516 | ||||||||||||
Loss from continuing operations | (1,213 | ) | 88 | (2,626 | ) | (1,047 | ) | |||||||||
Interest income | 16 | 59 | 96 | 219 | ||||||||||||
(Loss) income from continuing operations before income taxes | (1,197 | ) | 147 | (2,530 | ) | (828 | ) | |||||||||
Income tax expense | — | — | — | — | ||||||||||||
(Loss) income from continuing operations after income taxes | (1,197 | ) | 147 | (2,530 | ) | (828 | ) | |||||||||
DISCONTINUED OPERATIONS | ||||||||||||||||
Loss from discontinued operations including income on disposal of $13 for the three and nine months ended April 30, 2008, net of tax of $0 | (7 | ) | (127 | ) | (584 | ) | (127 | ) | ||||||||
Loss from discontinued operations | (7 | ) | (127 | ) | (584 | ) | (127 | ) | ||||||||
Net (loss) income | $ | (1,204 | ) | $ | 20 | $ | (3,114 | ) | $ | (955 | ) | |||||
COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Net (loss) income | $ | (1,204 | ) | $ | 20 | $ | (3,114 | ) | $ | (955 | ) | |||||
Unrealized losses on available-for-sale securities | $ | (75 | ) | $ | — | $ | (75 | ) | $ | — | ||||||
Foreign currency translation adjustment | 37 | — | 102 | — | ||||||||||||
Comprehensive (loss) income | $ | (1,242 | ) | $ | 20 | $ | (3,087 | ) | $ | (955 | ) | |||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 2,734 | 2,713 | 2,722 | 2,712 | ||||||||||||
Diluted | 2,734 | 2,740 | 2,722 | 2,712 | ||||||||||||
Basic (loss) income per share: | ||||||||||||||||
From continuing operations | $ | (0.44 | ) | $ | 0.05 | $ | (0.93 | ) | $ | (0.31 | ) | |||||
From discontinued operations, net of tax | — | (0.05 | ) | (0.21 | ) | (0.05 | ) | |||||||||
Basic (loss) per share | $ | (0.44 | ) | $ | — | $ | (1.14 | ) | $ | (0.36 | ) | |||||
Diluted (loss) income per share: | ||||||||||||||||
From continuing operations | $ | (0.44 | ) | $ | 0.05 | $ | (0.93 | ) | $ | (0.31 | ) | |||||
From discontinued operations, net of tax | — | (0.05 | ) | (0.21 | ) | (0.05 | ) | |||||||||
Diluted (loss) per share | $ | (0.44 | ) | $ | — | $ | (1.14 | ) | $ | (0.36 | ) | |||||
eOn Communications Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share and per share amounts)
April 30, 2008 | July 31, 2007 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,360 | $ | 2,256 | ||||
Marketable securities | — | 3,400 | ||||||
Trade accounts receivable, net of allowance of $718 and $694, respectively | 1,088 | 1,781 | ||||||
Trade accounts receivable - related party | 40 | 117 | ||||||
Inventories | 2,795 | 2,348 | ||||||
Prepaid and other current assets | 313 | 118 | ||||||
Current assets of discontinued operations | — | 119 | ||||||
Total current assets | 5,596 | 10,139 | ||||||
Property and equipment, net | 216 | 298 | ||||||
Intangibles, net | 272 | 334 | ||||||
Investments | 1,200 | 300 | ||||||
Long-term marketable securities | 925 | — | ||||||
Non-current assets of discontinued operations | — | 135 | ||||||
Total assets | $ | 8,209 | $ | 11,206 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 417 | $ | 432 | ||||
Trade accounts payable - related party | 250 | 337 | ||||||
Accrued expenses and other | 1,256 | 1,205 | ||||||
Current liabilities of discontinued operations | — | 16 | ||||||
Total current liabilities | 1,923 | 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, $0.005 par value (10,000,000 shares authorized, 2,869,608 and 2,849,629 shares issued, respectively) | 14 | 14 | ||||||
Additional paid-in capital | 55,926 | 55,769 | ||||||
Treasury stock, at cost (135,380 shares) | (1,502 | ) | (1,502 | ) | ||||
Accumulated deficit | (48,179 | ) | (45,065 | ) | ||||
Accumulated other comprehensive income | 27 | — | ||||||
Total stockholders’ equity | 6,286 | 9,216 | ||||||
Total liabilities and stockholders’ equity | $ | 8,209 | $ | 11,206 | ||||
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