eOn Communications Reports Increased Fourth Quarter and Total Year Revenue and Profitability
SAN JOSE, Calif., Nov. 1, 2010 /PRNewswire-FirstCall/ -- eOn Communications Corporation™ (Nasdaq: EONC) (the "Company"), a leading provider of telecommunications solutions, today reported fourth quarter and fiscal year ended July 31, 2010 results.
Fourth quarter revenue increased 8% to $5,477,000 from $5,089,000 in the fourth quarter of last year and increased 53% compared to revenues of $3,576,000 in the third quarter of this year. Net income for the quarter attributable to equity holders of the Company was $383,000 or $0.14 per common share compared to net income of $111,000 or $0.04 per common share in the quarter ended July 31, 2009. Included in net income for the quarter was $174,000 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 $557,000 or $0.20 per common share.
Total year revenue increased 61% to $17,094,000 from $10,645,000 in fiscal year 2009. The Company generated income, net of non-controlling interest, for the fiscal year ended July 31, 2010 of $467,000 or $0.17 per common share compared to a net loss of $339,000 or $0.12 per common share for the fiscal year ended July 31, 2009. Net income for the year excluding the impact of imputed interest expense of $674,000 was $1,141,000 or $0.41 per common share.
Financial results for the fourth quarter and fiscal year include a gain from the bargain purchase of majority interest in Cortelco Systems Puerto Rico of $497,000 and Cortelco Systems Puerto Rico income, net of non-controlling interest, of $41,000 from the June 9, 2010 acquisition date through July 31, 2010.
Cash, cash equivalents and marketable securities increased 36% to $4,108,000 as of July 31, 2010 from $3,010,000 as of July 31, 2009.
Mr. David Lee, Chairman of eOn's Board of Directors noted, "Our current positive results show the commitment we have to increase revenue and profitability. The acquisition of majority interest in Cortelco Systems Puerto Rico on June 9, 2010 has increased the company's value and we intend to continue efforts to maximize results."
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.
eOn Communications Corporation |
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Condensed Consolidated Statements of Operations |
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(Dollars in thousands, except per share data) |
||||||
Unaudited |
||||||
For the Years Ended July 31, |
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2010 |
2009 |
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REVENUE |
||||||
Third party revenue |
$ 17,094 |
$ 10,355 |
||||
Related party revenue |
- |
290 |
||||
Net revenue |
17,094 |
10,645 |
||||
COST OF REVENUE |
||||||
Third party cost of revenue |
10,908 |
5,659 |
||||
Related party cost of revenue |
- |
204 |
||||
Cost of revenue |
10,908 |
5,863 |
||||
Gross profit |
6,186 |
4,782 |
||||
OPERATING EXPENSE |
||||||
Selling, general and administrative |
4,784 |
3,633 |
||||
Research and development |
502 |
926 |
||||
Other |
52 |
120 |
||||
Total operating expense |
5,338 |
4,679 |
||||
Income from operations |
848 |
103 |
||||
OTHER INCOME (EXPENSE) |
||||||
Interest expense, net |
(671) |
(466) |
||||
Equity earnings of unconsolidated investee |
61 |
29 |
||||
Gain on bargain purchase |
497 |
- |
||||
Gain on investment |
15 |
- |
||||
Total other expense |
(98) |
(437) |
||||
Income (loss) before income taxes |
750 |
(334) |
||||
Income tax expense |
(248) |
(5) |
||||
Net income (loss) |
502 |
(339) |
||||
Less: Net income attributable to the noncontrolling interest |
35 |
- |
||||
Net income (loss) attributable to eOn Communications Corp. shareholders |
$ 467 |
$ (339) |
||||
Weighted average shares outstanding: |
||||||
Basic |
2,760 |
2,735 |
||||
Diluted |
2,762 |
2,735 |
||||
Basic income (loss) income per share |
$ 0.17 |
$ (0.12) |
||||
Diluted income (loss) income per share |
$ 0.17 |
$ (0.12) |
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eOn Communications Corporation |
||||||
Condensed Consolidated Balance Sheets |
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(Dollars in thousands, except share and per share amounts) |
||||||
As of July 31, |
||||||
2010 |
2009 |
|||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ 4,108 |
$ 3,010 |
||||
Trade accounts receivable, net of allowance of $235 and $332, respectively |
4,168 |
2,943 |
||||
Trade accounts receivable - related party |
8 |
228 |
||||
Inventories |
4,948 |
5,032 |
||||
Deferred income taxes |
- |
270 |
||||
Prepaid and other current assets |
257 |
242 |
||||
Total current assets |
13,489 |
11,725 |
||||
Property and equipment, net |
279 |
209 |
||||
Intangibles, net |
847 |
410 |
||||
Investments |
990 |
1,136 |
||||
Investment in unconsolidated equity investee |
- |
140 |
||||
Total assets |
$ 15,605 |
$ 13,620 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current liabilities: |
||||||
Trade accounts payable |
$ 2,361 |
$ 1,127 |
||||
Trade accounts payable - related party |
- |
11 |
||||
Notes payable - related parties |
674 |
1,157 |
||||
Accrued expenses and other |
1,977 |
1,628 |
||||
Total current liabilities |
5,012 |
3,923 |
||||
Notes payable - related parties, net of current portion |
3,647 |
3,891 |
||||
Total liabilities |
8,659 |
7,814 |
||||
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, 2,989,269 |
||||||
and 2,873,992 shares issued, respectively) |
15 |
14 |
||||
Additional paid-in capital |
56,269 |
56,048 |
||||
Treasury stock, at cost (139,580 shares) |
(1,503) |
(1,503) |
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Accumulated deficit |
(48,389) |
(48,856) |
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Accumulated other comprehensive income |
110 |
103 |
||||
Total eOn Communications Corp. stockholders' equity |
6,502 |
5,806 |
||||
Noncontrolling interest |
444 |
- |
||||
Total stockholders' equity |
6,946 |
5,806 |
||||
Total liabilities and stockholders' equity |
$ 15,605 |
$ 13,620 |
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SOURCE eOn Communications Corporation
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