News and Events

eOn Communications Reports Second Quarter Results

SAN JOSE, CA (March 14, 2007) – eOn Communications Corporation™ (NASDAQ: EONC), a leading provider of telecommunications solutions, today reported second quarter fiscal 2007 results.

Net loss for the quarter was $1,015,000, or ($0.07) per common share, compared to net income of $607,000, or $0.05 per common share in the quarter ended January 31, 2006. Net income in the quarter ended January 31, 2006 included income from continuing operations of $180,000, or $0.02 per common share and income from discontinued operations of $427,000, or $0.03 per common share. Revenue for the quarter was $1,487,000 (including related party revenue of $168,000) a decrease of 50% compared to $2,964,000 for the quarter ended January 31, 2006.

Net loss for the six months was $975,000 or ($0.07) per common share, compared to net income of $1,112,000 or $0.08 per common share for the six months ended January 31, 2006. Net income in the six months ended January 31, 2006 included income from continuing operations of $361,000 or $0.03 per common share, income from discontinued operations of $534,000 or $0.04 per common share and extraordinary gain of $217,000 or $0.01 per common share. Revenue for the six months was $4,195,000 (including related party revenue of $168,000) a decrease of 32% compared to $6,136,000 for the six months ended January 31, 2006.

During the six months ended January 31, 2007, 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 loss from continuing operations, excluding stock-based compensation of $158,000, would have been $817,000 or $0.06 per common share for the six months ended January 31, 2007 compared to income from continuing operations of $361,000 or $0.03 per common share for the same period in the previous year. Cash, cash equivalents and short-term marketable securities decreased 1% to $6,604,000 from $6,684,000 as of July 31, 2006.

“Obviously we are disappointed with the results for the quarter. Revenue was significantly impacted by delays experienced in new product introductions, a continued slow ramp up in sales coming from our China initiatives and seasonal buying patterns of our large US government and education market segments,” stated David Lee, eOn’s chairman and chief executive officer. “We believe that these factors will not persist in the current quarter, and that our results will significantly improve from these levels.”

“Our focus remains improving the Company’s performance by leveraging both organic growth and strategic partnerships,” added Lee.

Conference Call

The Company will host a conference call at 4:45 p.m. ET, March 14, 2007, to discuss first quarter results. To hear the call, dial 800-811-0667 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

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 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.