ATLANTA, Feb. 13 /PRNewswire/ -- eOn Communications Corporation (Nasdaq: EONC), a leading provider of unified voice, e-mail and Web-based communications systems and software, today announced changes to its senior management team, the restructuring of operations and product lines to improve profitability, and measures to focus operating resources on its Linux(TM)-based communications systems and software business. Troy E. Lynch, the Company's executive vice president and chief technology officer, has been promoted to chief operating officer. As COO, Lynch will oversee the Company's sales and marketing, product development, and customer support operations reporting to David S. Lee, chairman and chief executive officer. Lynch joined eOn in February 1999 as vice president and chief technology officer. He came to eOn from Hayes Corporation, where he was vice president of research and development. His senior management career also includes experience with other developing communications and high-tech companies such as Access Beyond and Penril Communications. "Troy Lynch possesses the vision, energy and leadership qualities to transform eOn into a more significant player in the fast-growing communications industry," said Lee. "Troy's promotion not only recognizes his contributions and leadership during his tenure with the Company, but also confirms our confidence in his ability to drive the programs needed to improve the Company's overall operations and build the business." eOn also announced the appointment of Lanny N. Lambert as vice president and chief financial officer. Lambert joined the Company in October 2000 as chief accounting officer. His previous experience in the communications industry includes service as vice president of finance and administration and CFO of CMC Industries, Inc.; vice president of finance and administration and CFO of the Corinth Telecommunications Corporation subsidiary of Alcatel n.v.; and various financial and administrative positions with ITT. Lambert succeeds Stephen N. Samp, who has resigned to pursue other interests. "Lanny Lambert is a seasoned financial officer who understands our industry and our company," said Lee. "He is well acquainted with the financial and operational imperatives of the communications business. Lanny is a strong addition to our senior management team." The Company also announced the resignation of Robert R. Cash as vice president and chief marketing officer. A search is currently underway to hire a replacement. Other actions taken in connection with the restructuring of the Company's operations include work force reductions of approximately twenty percent, the discontinuation of sales of most third-party products in both the domestic and the Caribbean/Latin American markets, and the relocation and concentration of management and certain other strategic functions to the 'Company's headquarters in Atlanta, Georgia. "We have made significant progress in restructuring our business," said Lee. "The elimination of certain third-party products from the Company's market offering enables us to further reduce operating expenses, focus marketing and development resources primarily on our advanced Linux(TM)-based communications systems and software, and concentrate on profitable segments of our Millennium(R) business. "This restructuring and other organizational changes are designed to make eOn a much stronger and more effective competitor, resulting in revenue enhancements and cost savings that will accelerate the Company's return to profitability. We will focus on profitability and earnings growth by specifically targeting our higher gross margin products and by aggressively reducing expenses," concluded Lee. eOn will recognize restructuring and other related charges in its financial results for the second fiscal quarter ended January 31, 2001. The Company plans to announce complete second quarter financial results Tuesday, February 27th, 2001, after market close. Following the announcement, eOn Communications Corporation will host a conference call to provide additional information regarding second quarter results and the restructuring of the Company's operations. Conference Call Arrangements: The eOn Communications Corporation second quarter conference call will be held at 4:45 p.m. Eastern Standard Time on Tuesday, February 27, 2001. Shareholders and other interested parties are invited to dial 913 981-5518 beginning at 4:30 p.m. EST. The operator will request a confirmation code, which is 705064. The live call will also be available through a link on the Company's Web site home page at www.eoncc.com. Internet users are requested to participate through the Web site if possible so that phone lines will be readily available to those without Web access. Please log on 30 minutes in advance to download and install audio software if necessary. A replay of the call will be posted to the investor information section of the eOn Web site shortly following the call. A recording will also be available no later than noon on February 28 by direct dial at 901 462-1010. About eOn Communications Corporation: eOn Communications Corporation (http://www.eoncc.com ) designs, develops and markets next-generation communications systems, adjunct servers and software that integrate and manage voice, e-mail and Internet communications for customer contact centers and general business applications. eOn Communications Corporation helps enterprises communicate more effectively with customers, convert inquiries into sales, and increase customer satisfaction and loyalty. 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.
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