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Inventergy Global, Inc. (INVT) Restructures Operations of Product Business to Achieve Profitability
Inventergy Global, an intellectual property (IP) that identifies, acquires and licenses patented technologies of market-significant technology leaders, has reorganized various components of the product-based businesses of its eOn Communications Systems, Inc. (“ECS”) subsidiary. The move is aligned with Inventergy’s broader growth strategy and is expected to increase earnings, reduce costs, improve cash flow and build shareholder value.
As part of the operational reorganization, ECS’s products and services are divided into three lines:
• A royalty bearing agreement with a third party for use of a private branch exchange business purchased from Inventergy’s predecessor, eOn Communications Corporation (“ECC”)
• A valued-added reseller business of biometric security and access control products
• A new business that provides outsourced sales, marketing and technical support services to business partners in the security products and services industry.
In addition, ECS has terminated a legacy business acquired as part of the company’s June 2014 merger with ECC. The resources from this business, which provided distribution services of facility security and access control products, has been redeployed to ECS’s biometric security and access control product line. ECS is managed by its president, Stephen Swartz.
The termination of the business and sale of remaining inventory and accounts receivables netted approximately $200,000 in cash for Inventergy. As a result of all of these changes, Inventergy expects the ECS subsidiary to be profitable and cash positive in the second quarter of 2015.
“We believe the restructuring of ECS supports our corporate growth strategy and enhances Inventergy’s business by adding additional revenue streams to our core licensing programs,” Joe Beyers, chairman and CEO of Inventergy, said in the news release. “Stephen Swartz has been instrumental in turning ECS into a business with increased operational profit potential. With Stephen at the helm of ECS, it allows the Inventergy management team to focus our energies on driving our core patent licensing, monetization and patent asset acquisition initiatives.”
For more information, visit www.inventergy.com
