Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Inventergy Global, Inc. | d8k.htm |
Exhibit 99.1
Investor Relations
eOn Communications
800-955-5321
investorrelations@eoncc.com
For Release 10:00 AM ET, December 14, 2010
eOn Communications Reports First Quarter Revenue Increase
CORINTH, MS (December 14, 2010) – eOn Communications Corporation™ (NASDAQ: EONC) (the “Company”), a leading provider of telecommunications solutions, today reported first fiscal quarter results for the period ended October 31, 2010.
First quarter revenue increased 30% to $5,863,000 from $4,525,000 in the first quarter of last year, primarily due to the inclusion of Cortelco Systems Puerto Rico revenue in which majority ownership was acquired on June 9, 2010. Net loss for the quarter was $247,000 or $0.09 per common share compared to net income of $379,000 or $0.14 per common share in the quarter ended October 31, 2009. Our operating results were negatively impacted by an inventory reserve provision of approximately $119,000 attributable to our China operations. Also included in net income for the quarter was $156,000 of imputed interest expense due to the amortization of the difference between the face value of the contingent obligation to the former Cortelco shareholders and the discounted present value of the note payable recorded on the balance sheet. Net loss for the quarter excluding the impact of the imputed interest expense was $91,000 or $0.03 per common share.
Mr. David Lee, chairman of eOn’s Board of Directors noted, “Our increase in revenue is encouraging and reflects our continued commitment and plan of sustained profitability. Our net income for the quarter excluding imputed interest and the extraordinary inventory reserve provision was $28,000 despite continued adverse economic conditions.”
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
(Dollars in thousands, except per share data)
Unaudited
| Three Months Ended October 31, |
||||||||
| 2010 | 2009 | |||||||
| REVENUE |
||||||||
| Net revenue |
$ | 5,863 | $ | 4,525 | ||||
| COST OF REVENUE |
||||||||
| Cost of revenue |
4,250 | 2,804 | ||||||
| Gross profit |
1,613 | 1,721 | ||||||
| OPERATING EXPENSE |
||||||||
| Selling, general and administrative |
1,571 | 1,155 | ||||||
| Research and development |
133 | 137 | ||||||
| Other expenses |
33 | 19 | ||||||
| Total operating expense |
1,737 | 1,311 | ||||||
| (Loss) income from operations |
(124 | ) | 410 | |||||
| OTHER INCOME (EXPENSE) |
||||||||
| Interest expense, net |
(158 | ) | (53 | ) | ||||
| Equity in earnings of unconsolidated investee |
— | 1 | ||||||
| Total other expense |
(158 | ) | (52 | ) | ||||
| (Loss) income before income taxes |
(282 | ) | 358 | |||||
| Income tax expense (benefit) |
— | (21 | ) | |||||
| Net (loss) income |
(282 | ) | 379 | |||||
| Less: Net loss attributable to noncontrolling interest |
(35 | ) | — | |||||
| Net (loss) income attributable to eOn Communications shareholders |
$ | (247 | ) | $ | 379 | |||
| COMPREHENSIVE (LOSS) INCOME |
||||||||
| Net (loss) income |
$ | (247 | ) | $ | 379 | |||
| Unrealized gains on available-for-sale securities |
— | 4 | ||||||
| Foreign currency translation adjustment |
2 | — | ||||||
| Comprehensive (loss) income |
$ | (245 | ) | $ | 383 | |||
| Weighted average shares outstanding |
||||||||
| Basic |
2,855 | 2,735 | ||||||
| Diluted |
2,855 | 2,736 | ||||||
| Basic (loss) income per share |
$ | (0.09 | ) | $ | 0.14 | |||
| Diluted (loss) income per share |
$ | (0.09 | ) | $ | 0.14 | |||
###
eOn Communications Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share and per share amounts)
| October 31, | July 31, | |||||||
| 2010 | 2010 | |||||||
| (unaudited) | ||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 3,518 | $ | 4,108 | ||||
| Trade accounts receivable, net of allowance of $235 and $235, respectively |
3,863 | 4,168 | ||||||
| Trade accounts receivable - related party |
— | 8 | ||||||
| Inventories |
4,629 | 4,948 | ||||||
| Prepaid and other current assets |
321 | 257 | ||||||
| Total current assets |
12,331 | 13,489 | ||||||
| Property and equipment, net |
261 | 279 | ||||||
| Intangibles, net |
978 | 847 | ||||||
| Investments |
990 | 990 | ||||||
| Total assets |
$ | 14,560 | $ | 15,605 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Trade accounts payable |
$ | 1,849 | $ | 2,361 | ||||
| Notes payable - related party |
882 | 674 | ||||||
| Accrued expenses and other |
1,922 | 1,977 | ||||||
| Total current liabilities |
4,653 | 5,012 | ||||||
| Notes payable - related party, net of current portion |
3,195 | 3,647 | ||||||
| Total liabilities |
7,848 | 8,659 | ||||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Preferred stock, $0.001 par value, (10,000,000 shares authorized, |
— | — | ||||||
| Common stock, $0.005 par value (10,000,000 shares authorized, |
15 | 15 | ||||||
| Additional paid-in capital |
56,264 | 56,269 | ||||||
| Treasury stock, at cost (139,580 shares) |
(1,503 | ) | (1,503 | ) | ||||
| Accumulated deficit |
(48,636 | ) | (48,389 | ) | ||||
| Accumulated other comprehensive income |
112 | 110 | ||||||
| Total eOn Communications Corp. stockholders’ equity |
6,252 | 6,502 | ||||||
| Noncontrolling interest |
460 | 444 | ||||||
| Total stockholders’ equity |
6,712 | 6,946 | ||||||
| Total liabilities and stockholders’ equity |
$ | 14,560 | $ | 15,605 | ||||
###