SAN JOSE, Calif., March 17 /PRNewswire-FirstCall/ -- eOn Communications Corporation(TM) , a leading provider of telecommunications solutions, today reported second quarter fiscal 2008 results.
Net loss for the quarter was $999,000, or ($0.07) per common share, compared to a net loss of $1,015,000, or $(0.07) per common share in the quarter ended January 31, 2007. The loss for this quarter included $59,000 from discontinued operations. Revenue for the quarter was $1,480,000 (including related party revenue of $88,000) compared to $1,487,000 (including related party revenue of $168,000) for the quarter ended January 31, 2007.
Net loss for the six months was $1,910,000 or ($0.14) per common share, compared to a net loss of $975,000 or ($0.07) per common share for the six months ended January 31, 2007. The net loss for the six months ended January 31, 2008 included a loss from discontinued operations of $577,000 or ($0.04) per common share. Revenue for the six months was $3,876,000 (including related party revenue of $216,000) a decrease of 8% compared to $4,195,000 (including related party revenue of $168,000) for the six months ended January 31, 2007.
Cash, cash equivalents and marketable securities decreased 50% to $2,826,000 from $5,656,000 as of July 31, 2007 primarily as a result of funding operating losses for the six month period and the $900,000 investment in the Symbio Group.
"We are very disappointed with these results and have begun restructuring to improve the Company's performance and return us to profitability," stated David Lee, eOn's chairman and chief executive officer. "We will be hosting a conference call in April to address Company operations, growth plans and the prospective merger with Cortelco."
About eOn Communications(TM)
eOn Communications Corporation(TM) 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 http://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.
eOn Communications Corporation Condensed Consolidated Statements of Operations (Dollars in thousands, except per share data) Unaudited Three Months Ended Six Months Ended January 31, January 31, 2008 2007 2008 2007 REVENUE Third party revenue $ 1,392 $ 1,319 $ 3,660 $ 4,027 Related party revenue 88 168 216 168 Net revenue 1,480 1,487 3,876 4,195 COST OF REVENUE Third party cost of revenue 576 514 1,468 1,457 Related party cost of revenue 80 156 200 156 Cost of revenue 656 670 1,668 1,613 Gross profit 824 817 2,208 2,582 OPERATING EXPENSE Selling, general and administrative 1,107 1,120 2,147 2,177 Research and development 680 768 1,437 1,510 Other expense 11 24 37 30 Total operating expense 1,798 1,912 3,621 3,717 Loss from continuing operations (974) (1,095) (1,413) (1,135) Interest income 34 80 80 160 (Loss) income from continuing operations before income taxes (940) (1,015) (1,333) (975) Income tax expense - - - - (Loss) income from continuing operations after income taxes (940) (1,015) (1,333) (975) DISCONTINUED OPERATIONS Loss from discontinued operations, net of tax of $0 (59) - (577) - Loss from discontinued operations (59) - (577) - Net (loss) income $ (999) $(1,015) $(1,910) $ (975) COMPREHENSIVE INCOME (LOSS) Net (loss) income $ (999) $(1,015) $(1,910) $ (975) Foreign currency translation adjustment 27 - 65 - Comprehensive (loss) income $ (972) $(1,015) $(1,845) $ (975) Weighted average shares outstanding - basic and diluted 13,588 13,552 13,584 13,549 Basic and diluted (loss) income per share: From continuing operations after income taxes $(0.07) $ (0.07) $ (0.10) $ (0.07) From discontinued operations, net of tax - - (0.04) - Basic and diluted (loss) income per share $(0.07) $ (0.07) $ (0.14) $ (0.07) eOn Communications Corporation Condensed Consolidated Balance Sheets (Dollars in thousands, except share and per share amounts) January 31, July 31, 2008 2007 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 926 $ 2,256 Marketable securities 1,900 3,400 Trade accounts receivable, net of allowance of $667 and $694, respectively 949 1,781 Trade accounts receivable - related party 83 117 Inventories 2,833 2,348 Prepaid and other current assets 310 118 Current assets of discontinued operations - 119 Total current assets 7,001 10,139 Property and equipment, net 339 298 Intangibles, net 293 334 Investments 1,200 300 Non-current assets of discontinued operations 73 135 Total assets $ 8,906 $11,206 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 255 $ 432 Trade accounts payable - related party 94 337 Accrued expenses and other 1,006 1,205 Current liabilities of discontinued operations 40 16 Total current liabilities 1,395 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, 14,343,194 and 14,247,029 shares issued, respectively) 14 14 Additional paid-in capital 55,909 55,769 Treasury stock, at cost (676,900 shares) (1,502) (1,502) Accumulated deficit (46,975) (45,065) Accumulated other comprehensive income 65 - Total stockholders' equity 7,511 9,216 Total liabilities and stockholders' equity $ 8,906 $11,206
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