SAN JOSE, Calif., March 13 /PRNewswire-FirstCall/ -- eOn Communications Corporation(TM) , a leading provider of telecommunications solutions, today reported second quarter fiscal 2009 results.
Net loss for the quarter was $376,000, or ($0.14) per common share, compared to a net loss of $999,000, or ($0.37) per common share in the quarter ended January 31, 2008. The net loss for the quarter ended January 31, 2008 included a loss from discontinued operations of $59,000 or ($0.02) per common share. Revenue for the quarter was $1,307,000 (with no related party revenue), a decrease of 12% compared to $1,480,000 (including related party revenue of $88,000) for the quarter ended January 31, 2008.
Net loss for the six months was $510,000 or ($0.19) per common share, compared to a net loss of $1,910,000 or ($0.70) per common share for the six months ended January 31, 2008. The net loss for the six months ended January 31, 2008 included a loss from discontinued operations of $577,000 or ($0.21) per common share. Revenue for the six months was $3,091,000 (with no related party revenue), a decrease of 20% compared to $3,876,000 (including related party revenue of $216,000) for the six months ended January 31, 2008.
Cash, cash equivalents and marketable securities decreased 6% to $2,383,000 from $2,545,000 as of July 31, 2008 primarily as a result of funding operating losses for the six month period.
On December 12, 2008, the Company executed a restructured Agreement and Plan of Merger to acquire Cortelco Systems Holding Corporation ("Cortelco") for up to $11,000,000 in cash, contingent primarily on the future earnings of Cortelco. The independent members of the Board of Directors of both eOn and Cortelco have approved the proposed merger. A majority of the Cortelco stockholders (excluding the shares held by David Lee and Steve Bowling) have approved the merger pursuant to an action by written consent that became effective January 26, 2009. Completion of the merger is subject to the fulfillment of the remaining conditions to closing.
The Company anticipates, but cannot guarantee, that the transaction will close sometime in the Company's third fiscal quarter of fiscal year 2009. The proposed merger may be terminated if the conditions to closing are not fulfilled, in the event of a breach of the agreement by either party, or upon mutual agreement of the parties.
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, 2009 2008 2009 2008 REVENUE Third party revenue $1,307 $1,392 $3,091 $3,660 Related party revenue - 88 - 216 Net revenue 1,307 1,480 3,091 3,876 COST OF REVENUE Third party cost of revenue 703 576 1,516 1,468 Related party cost of revenue - 80 - 200 Cost of revenue 703 656 1,516 1,668 Gross profit 604 824 1,575 2,208 OPERATING EXPENSE Selling, general and administrative 688 1,107 1,455 2,147 Research and development 277 680 582 1,437 Other expense 17 11 61 37 Total operating expense 982 1,798 2,098 3,621 Loss from continuing operations (378) (974) (523) (1,413) Interest income 2 34 13 80 Loss from continuing operations before income taxes (376) (940) (510) (1,333) Income tax expense - - - - Loss from continuing operations after income taxes (376) (940) (510) (1,333) DISCONTINUED OPERATIONS Loss from discontinued operations - (59) - (577) Loss from discontinued operations - (59) - (577) NET LOSS $(376) $(999) $(510) $(1,910) Weighted average shares outstanding Basic and diluted 2,736 2,718 2,735 2,717 Basic and diluted loss per share: From continuing operations $(0.14) $(0.35) $(0.19) $(0.49) From discontinued operations, net of tax - (0.02) - (0.21) Basic and diluted loss per share $(0.14) $(0.37) $(0.19) $(0.70) eOn Communications Corporation Condensed Consolidated Balance Sheets (Dollars in thousands, except share and per share amounts) January 31, July 31, 2009 2008 (unaudited) ASSETS Current assets: Cash and cash equivalents $1,383 $1,545 Marketable securities 1,000 1,000 Trade accounts receivable, net of allowance of $307 and $680, respectively 703 932 Trade accounts receivable - related party 7 84 Inventories 2,143 2,501 Prepaid and other current assets 109 177 Total current assets 5,345 6,239 Property and equipment, net 126 176 Intangibles, net 209 251 Investments 1,086 900 Non-current assets 131 88 Total assets $6,897 $7,654 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $100 $214 Trade accounts payable - related party 122 126 Notes payable 138 138 Accrued expenses and other 954 1,145 Total liabilities, all current 1,314 1,623 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, 2,870,888 and 2,869,608 shares issued, respectively) 14 14 Additional paid-in capital 55,994 55,931 Treasury stock, at cost (135,380 shares) (1,502) (1,502) Accumulated deficit (49,027) (48,517) Accumulated other comprehensive income 104 105 Total stockholders' equity 5,583 6,031 Total liabilities and stockholders' equity $6,897 $7,654
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