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eOn Communications Corp. Reports Operating Results (10-Q)

December 13, 2011 | About:
10qk

10qk

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eOn Communications Corp. (EONC) filed Quarterly Report for the period ended 2011-10-31.

Eon Communications Corp. has a market cap of $2.9 million; its shares were traded at around $1.02 with a P/E ratio of 12.8 and P/S ratio of 0.1.

Highlight of Business Operations:

Net revenue increased by approximately 7% to $6,230,000 for the three months ended October 31, 2011 compared to $5,829,000 for the same period of the previous year. The increase was attributable to increased revenues of approximately $694,000 in the Cortelco product line and $97,000 in the CSPR product line compared to the same period of the previous year. The increase is partially offset by revenue declines in the Companys other product lines.

Cost of revenue is primarily comprised of purchases from our contract manufacturers and other suppliers and costs incurred for final assembly of our systems. Gross profit increased approximately 1% to $1,728,000 for the three months ended October 31, 2011 from $1,709,000 for the same period of the previous year. Increases in Cortelco, CSPR and

Millennium gross profit was partially offset by a decline in eQueue gross profit for the three months ended October 31, 2011 when compared to the same period of the previous year. The cost of revenue in the previous year included approximately $15,000 in amortization of eConn IP-PBX software costs. There was no software amortization in the three months ended October 31, 2011. Gross profit percent decreased to approximately 28% for the three months ended October 31, 2011 compared with gross profit percent of approximately 29% for the same period of the previous year, primarily the result of product mix. The gross profit percentage on Cortelco and CSPR revenue is significantly less than the historical margins for both the Millennium and eQueue products.

Other expense is primarily comprised of bank service charges, stock compensation expense, franchise taxes, currency differences, proceeds from scrap sales, and gains or losses from disposal of fixed assets. Other income was $9,000 for the three months ended October 31, 2011 compared to expense of $33,000 for the same period of the previous year. Other income for the current year includes proceeds from scrap sales of approximately $19,000.

At October 31, 2011, four customers accounted for approximately 47% of total accounts receivable and individually 15%, 13%, 11% and 8% of the total accounts receivable. At October 31, 2010, four customers accounted for approximately 39% of total accounts receivable and individually 11%, 11%, 9% and 8% of the total accounts receivable. For the three months ended October 31, 2011, four customers accounted for approximately 49% of total revenue and individually 17%, 14%, 13%, and 5% of total revenue. For the three months ended October 31, 2010, four customers accounted for approximately 39% of total revenue and individually 17%, 9%, 8% and 5% of total revenue.

Read the The complete Report

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