eOn Communications Reports Fifth Consecutive Quarter of Profitability (email this article)

SAN JOSE, Calif., Dec. 14 /PRNewswire-FirstCall/ -- eOn Communications Corporation(TM) (Company Profile, Past Stories, Case Studies) (Nasdaq: EONC - News), a leading provider of telecommunications solutions, today reported profitable first quarter fiscal 2007 results. This represents the fifth consecutive quarter of profitable results delivered by the Company.

Net income for the quarter was $40,000, or less than $0.01 per common share, compared to net income of $505,000, or $0.04 per common share in the quarter ended October 31, 2005. Net income in the quarter ended October 31, 2005 included income from discontinued operations of $107,000 and an extraordinary gain of $217,000. Revenue for the quarter was $2,708,000, a decrease of 15% compared to $3,172,000 for the quarter ended October 31, 2005.

During the quarter ended October 31, 2006, the Company implemented Statement of Financial Accounting Standards No. 123R, which requires companies to estimate the cost of all forms of stock-based compensation and record a commensurate expense in the statement of operations. Pro forma earnings from continuing operations, excluding stock-based compensation of $80,000, would have been $120,000 or $0.01 per common share for the quarter ended October 31, 2006 compared to $181,000 or $0.01 per common share for the same period in the previous year.

Cash and cash equivalents and short-term marketable securities increased 7% to $7,162,000 from $6,684,000 as of July 31, 2006.

"I am pleased to report that we have delivered our fifth consecutive profitable quarterly performance," stated David Lee, eOn's chairman and chief executive officer. "Going forward our focus will be on improving the company's performance by leveraging both organic growth and strategic partnerships."

Conference Call
The Company will host a conference call at 4:45 p.m. ET, December 14, 2006, to discuss first quarter results. To hear the call, dial 800-263-8506 or visit our investor relations website at investor.eoncc.com. A replay of the call will be posted to our investor relations website shortly following the call.

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 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.