News and Events

eOn Communications Reports Profitable Third Quarter

Fiscal 2007

SAN JOSE, CA (June 12, 2007) – eOn Communications Corporation™ (NASDAQ: EONC), a leading provider of telecommunications solutions, today reported financial results for the third fiscal quarter ended April 30, 2007.

Net income was $20,000, or less than $0.01 per common share compared with a net loss of ($1,015,000) or ($0.07) per share in the prior quarter ended January 31, 2007 and net income of $294,000, or $0.02 per share in the quarter ended April 30, 2006. Net income for this quarter included an operating loss of $127,000 incurred developing eOn’s IP Hosting business and stock-based compensation of $78,000 as explained below. Revenues for the quarter were $3,570,000 (including related party revenue of $195,000) an increase of 17% compared to $3,047,000 for the same period last year, and an increase of 140% compared to revenues of $1,487,000 in the previous quarter.

Net loss for the nine months was ($955,000) or ($0.07) per common share, compared to net income of $1,406,000 or $0.11 per common share for the nine months ended April 30, 2006. Net income in the nine months ended April 30, 2006 included income from continuing operations of $630,000 or $0.05 per common share, income from discontinued operations of $559,000 or $0.04 per common share and extraordinary gain of $217,000 or $0.02 per common share. Revenue for the nine months was $7,765,000 (including related party revenue of $363,000) a decrease of 15% compared to $9,183,000 for the nine months ended April 30, 2006. Cash, cash equivalents and short-term marketable securities decreased 21% to $5,303,000 from $6,684,000 as of July 31, 2006.

During the nine months ended April 30, 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 $236,000, would have been ($719,000) or ($0.05) per common share for the nine months ended April 30, 2007 compared to income from continuing operations of $630,000 or $0.05 per common share for the same period in the previous year.

“We are pleased that we have returned to profitability, even after our expenditures in our new IP Hosting business. Revenue was up significantly in China and US government accounts,” stated David Lee, eOn’s chairman and chief executive officer.

“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, June 12, 2007, to discuss first quarter results. To hear the call, dial 800-289-0572 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.

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.