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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Mariah Smyth who wrote (102565)	5/4/2000 9:30:00 AM
From: vagabond	Respond to of 108040

EONC tanking on bad earnings preview (by the way, anybody else having trouble connecting to Yahoo Finance this morning? Can't get to it, so having to post news from another -- less format-able -- source)... =============== (REUTERS) eOn sees lower-than-expected third quarter results eOn sees lower-than-expected third quarter results MEMPHIS, Tenn., May 3 (Reuters) - eOn Communications Corp. <EONC.O>, which designs, develops and markets Linux-based communications servers and software, said Wednesday its third quarter results would be lower due to a shortfall in revenues caused by a slowdown of non-Linux based equipment sales. For the quarter ended April 30, the company forecast a loss of between 7 cents and 10 cents a share on revenues between $11.7 million and $12 million. Wall Street had expected the company to lose 1 cent a share in the third quarter, according to First Call/Thomson Financial. The company plans to announce third quarter results during the week of May 22nd. "These projected financial results are lower than anticipated," J. Michael O'Dell, president and chief executive, said in a statement. "The shortfall in revenues reflects a sharper than expected slowdown in sales of our traditional non- Linux-based PBX equipment and of third-party PBX systems by our Puerto Rican subsidiary. We expect these trends will continue to negatively impact sales in these segments of our business." The company also said it experienced a delay that lasted into the fourth quarter of anticipated shipments of its Linux-based eQueue and eNterprise communications servers. "Although we are clearly disappointed in the overall results, we are increasingly optimistic about growth prospects for our Linux-based communications server and software business," O'Dell added. "The market for eOn's Linux-based products is very large, demand for our products is strong and growth in our sales pipeline is accelerating." The company expects third-quarter sales in the Linux-based segment of its business to be up about 48 percent compared with the prior quarter and up 200 percent over the same period last year, excluding the one-time impact of its Federal Aviation Administration contract. Eon shares closed down 15/16 at 9-5/16 on Wednesday. ((Ilaina Jonas, New York Newsdesk, 212-859-1676))