News and Events

eOn Communications Reports Third Quarter Results and Acquisition of Majority Interest in Cortelco Systems Puerto Rico

SAN JOSE, CA (June 10, 2010) – eOn Communications Corporation™ (NASDAQ: EONC) (the “Company”), a leading provider of telecommunications solutions, today reported third quarter fiscal 2010 results for the period ended April 30, 2010 and the acquisition of a majority interest in Cortelco Systems Puerto Rico on June 9, 2010.

Third quarter revenue increased 45% to $3,576.000 from $2,465,000 in the third quarter of last year. Net income for the quarter, excluding the impact of the imputed interest expense, was $102,000, or $0.04 per common share. With imputed interest, the quarter had a net loss of $47,000 or $0.02 per common share compared to net income of $60,000, or $0.02 per common share in the quarter ended April 30, 2009. The net loss in the quarter ended April 30, 2010 included $149,000 of imputed interest expense due to the amortization of the difference between the face value of the contingent obligation to the former Cortelco shareholders and the discounted present value of the note payable recorded on the balance sheet.

Revenue for the nine months was $11,617,000, an increase of 109% compared to revenue of $5,556,000 for the nine months ended April 30, 2009. Net income for the nine months ended April 30, 2010, was $84,000 or $0.03 per common share, compared to a net loss of $450,000, or $0.16 per common share for the nine months ended April 30, 2009. Net income, excluding imputed interest expense of $499,000, was $583,000 or $0.21 per common share for the first nine months of fiscal 2010. Financial results include the operating results of Cortelco Systems Holding Corp., which was acquired on April 1, 2009.

Mr. David Lee, Chairman of eOn’s Board of Directors noted, “While our results for the quarter were below our expectations, we are evaluating strategic alternatives to improve our performance. Positive results for the nine months, despite economic conditions, are reflective of the Company’s commitment to increase revenue and control operating costs.”

Cash, cash equivalents and marketable securities increased 21% to $2,536,000 from $2,094,000 as of April 30, 2009. Cash and cash equivalents decreased 16% from $3,010,000 as of July 31, 2009 primarily as a result of payments against the note payable to former Cortelco shareholders.

The Company also today announced the June 9, 2010 acquisition of majority interest in Cortelco Systems Puerto Rico, a value-added reseller of third-party brands of product solutions including voice, data, security, applications, transmission and telephone billing services. Mr. James Hopper, eOn’s President and CEO, noted, “The two companies are complimentary, both geographically and in providing innovative solutions to customers. Synergies are expected with this acquisition as we focus on driving revenue, particularly in new product lines.”

The accompanying pro forma statements of operations for the three and nine months ended April 30, 2010 give effect to the acquisition of Cortelco Systems Puerto Rico by eOn Communications as if it had been consummated at the beginning of the periods presented. The Company is evaluating the excess of fair value over the purchase price and expects to record a gain the fourth fiscal quarter of 2010 after the evaluation is complete.

About eOn Communications

eOn Communications Corporation is a global provider of innovative communications solutions. Backed by over 30 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, eQueue and Millennium are trademarks of eOn Communications Corporation.