- Published: 09 November 2009
- Written by Editor
eOn Communications Reports Strong Fourth Quarter and Total Year Revenue with Fourth Quarter Profitability
eOn Communications Corporation((TM)) (Nasdaq: EONC) (the "Company"), a leading provider of telecommunications solutions, today reported fourth quarter and fiscal year ended July 31, 2009 results.
Fourth quarter revenue increased 217% to $5,089,000 from $1,604,000 in the fourth quarter of last year and increased 106% compared to revenues of $2,465,000 in the third quarter of this year. Net income for the quarter was $111,000 or $0.04 per common share compared to a net loss of $338,000 or $0.12 per common share in the quarter ended July 31, 2008. Included in the net income for the quarter was $480,000 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 income for the quarter excluding the impact of the imputed interest expense was $591,000 or $0.22 per common share.
Total year revenue increased 52% to $10,645,000 from $6,994,000 in fiscal year 2008. Net loss for the fiscal year ended July 31, 2009 was $339,000 or $0.12 per common share compared to net loss of $3,452,000 or $1.27 per common share for the fiscal year ended July 31, 2008. Net income for the year excluding the impact of the imputed interest expense was $141,000 or $0.05 per common share.
eOn's operating results for the quarter ended July 31, 2009 represent the second consecutive profitable quarter. Financial results for the current fiscal year include net income of $430,000 of Cortelco Systems Holding Corp., which was acquired on April 1, 2009.
Cash, cash equivalents and marketable securities increased 18% to $3,010,000 from $2,545,000 as of July 31, 2008.
"I would like to thank everyone in the organization for their continued efforts to return eOn Communications to profitability," commented Mr. David S. Lee, Chairman of eOn's Board of Directors. "For the fourth quarter of 2009 all divisions (eOn US, Cortelco and eOn China) were profitable resulting in net earnings per share of $0.22 before imputed interest expense. With our recent reorganization and merger with Cortelco, I feel that the company is now positioned to achieve positive results going forward."
The Company also today announces that its Annual Shareholder Meeting will be held at 2:00 PM on December 8, 2009 at the Company's offices in San Jose, CA. Shareholders of record as of November 6, 2009 will be entitled to vote at the Annual Meeting.
About eOn Communications
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 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
For the Years
Ended July 31,
---------------
2009 2008
---- ----
REVENUE
Third party revenue $10,355 $6,646
Related party revenue 290 348
--- ---
Net revenue 10,645 6,994
COST OF REVENUE
Third party cost of revenue 5,659 2,832
Related party cost of revenue 204 323
--- ---
Cost of revenue 5,863 3,155
----- -----
Gross profit 4,782 3,839
OPERATING EXPENSE
Selling, general and administrative
(including $243 and $210
of related party management fees,
respectively) 3,633 3,893
Research and development 926 2,641
Other expense,net 120 283
--- ---
Total operating expense 4,679 6,817
----- -----
Income (loss) from continuing operations 103 (2,978)
Interest (expense) income (466) 117
Equity earnings of unconsolidated equity
investee 29 -
--- ---
Loss from continuing operations before
income taxes (334) (2,861)
Income tax expense (5) -
--- ---
Loss from continuing operations after
income taxes (339) (2,861)
DISCONTINUED OPERATIONS
Loss from discontinued operations - (604)
Gain on disposal of discontinued
operations, net of tax of $0 - 13
--- ---
Loss from discontinued operations - (591)
--- ---
Net loss $(339) $(3,452)
===== =======
Weighted average shares outstanding
Basic and diluted 2,735 2,725
Basic and diluted loss per share:
From continuing operations $(0.12) $(1.05)
From discontinued operations, net of tax - (0.22)
--- ----
Basic and diluted net loss per share $(0.12) $(1.27)
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eOn Communications Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share and per share amounts)
As of July 31,
--------------
2009 2008
---- ----
ASSETS
Current assets:
Cash and cash equivalents $3,010 $1,545
Marketable securities - 1,000
Trade accounts receivable, net of allowance
of $332 and $680, respectively 2,943 932
Trade accounts receivable - related party 228 84
Inventories 5,032 2,501
Deferred income taxes 270 -
Prepaid and other current assets 242 177
--- ---
Total current assets 11,725 6,239
Property and equipment, net 209 176
Intangibles, net 410 251
Investments 1,136 900
Investment in unconsolidated equity investee 140 -
Other non-current assets - 88
--- ---
Total assets $13,620 $7,654
======= ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $1,127 $214
Trade accounts payable - related party 11 126
Notes payable, related party 1,157 138
Accrued expenses and other 1,628 1,145
----- -----
Total current liabilities 3,923 1,623
Note payable, related party, net of current
portion 3,891 -
----- ---
Total liabilities 7,814 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, 2,873,992 and
2,869,608 shares issued, respectively) 14 14
Additional paid-in capital 56,048 55,931
Treasury stock, at cost (139,580 shares) (1,503) (1,502)
Accumulated deficit (48,856) (48,517)
Accumulated other comprehensive income 103 105
--- ---
Total stockholders' equity 5,806 6,031
----- -----
Total liabilities and stockholders' equity $13,620 $7,654
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