Harinina: eOn Communications soars with recorded Gross Profit

eOn Communications Corporation (NASDAQ:EONC) has traded as high as $2.88 during today?s trading session and last traded at $2.33 for a gain of 128.43% from yesterday?s close! EONC shares traded as high as $3.35 over the last 52 weeks, which is still over 30% off that high at last traded stock price. Get my next ALERT 100% FREE

EONC is a provider of communications solutions. Backed with over 20 years of telecommunications engineering expertise, the Company?s solutions enable its customers to use technologies to communicate more effectively. eOn?s offerings are built on reliable open architectures that enable easy adoption of technologies, such as Voice over Internet Protocol (VoIP) and concepts such as Service Oriented Architecture (SOA). Whether businesses are looking to leverage the advantages of enterprise IP telephony or advanced contact center technologies, eOn delivers proven, IP-ready products that improve business performance.

Cortelco is committed to fulfilling the communication needs of business and organizations worldwide.? Cortelco?s mission is to provide our valued customers with telephone products together with service and support. Cortelco has formed partnerships with distributors and provides the support needed to supply customers with sales, marketing, customer service, technical support and training. The Company?s Cortelco product line provides customer premise equipment (CPE) commercial grade telephone products primarily for use in businesses, government agencies, colleges and universities, telephone companies, and utilities.

On April 1, 2009, the Company acquired Cortelco for up to $11,000,000 in cash. Cortelco merged with a newly formed wholly-owned subsidiary of eOn and is now a wholly-owned subsidiary of eOn. In exchange for all of the outstanding shares of Cortelco stock, Cortelco shareholders received an initial aggregate payment of $500,000 and a note payable for $10,500,000 (the ?Cortelco Note?). The Cortelco Note is non-interest bearing and is to be repaid based primarily upon the level of Cortelco earnings after closing and all Cortelco shareholders are eligible to receive quarterly payments there under in cash until the full consideration has been paid. The fair value of the Cortelco Note payable obligation assumed on the April 1, 2009 acquisition date was estimated using a discounted cash flow method, and together with approximately $124,000 in acquisition costs, resulted in a total purchase price of $5,054,000. As of October 31, 2011, the Company has made payments of approximately $2,786,000 to former Cortelco shareholders for the acquisition, including the initial aggregate payment of $500,000.? David Lee, Chairman of eOn, was the Chairman and the controlling shareholder of Cortelco at the date of acquisition.

On June 9, 2010, the Company executed a Stock Purchase Agreement to purchase 501,382 shares of common stock of CSPR from David S. Lee, eOn?s Chairman. The acquisition of CSPR stock was completed on June 9, 2010. The consideration for the CSPR shares consists of (i) 90,959 Company shares of stock, issued to? Mr. Lee? effective? June 9, 2010 , (ii) a cash payment of? $185,511.34 , payable in three annual installments, with the initial installment due on? June 9, 2011 , (iii) and the right to share in sales proceeds received by the Company if the Company sells the CSPR shares on or before? June 9, 2013? for a price that is more than the Company paid for the shares. The number of eOn shares issued to Mr. Lee was calculated based on the average closing price of eOn Shares for thirty (30) trading days ending on June 8, 2010. The Company has the right to require Mr. Lee to repurchase the CSPR shares at the price paid by the Company on or after June 9, 2013, but before June 9, 2014. The purchase, combined with shares already owned by the Company, establishes eOn Communications as the majority shareholder of CSPR.

Net Revenue

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 Company?s other product lines.

Cost of Revenue and Gross Profit

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.

Harinina

শনিবার, ১৭ ডিসেম্বর, ২০১১

eOn Communications soars with recorded Gross Profit | Stock ...

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