Elcom Intl, Inc - The consolidated financial statements include...

Elcom Intl, Inc - Recent Material Event

Item 1.	Financial Statements

	Consolidated Balance Sheets as of March 31, 2007 (unaudited) and December 31, 2006

	Consolidated Statements of Operations and Other Comprehensive Income (Loss) for the Three Month Periods Ended March 31, 2007 and 2006 (unaudited)

	Consolidated Statements of Cash Flows for the Three Month Periods Ended March 31, 2007 and 2006 (unaudited)

	Notes to Consolidated Financial Statements (unaudited)	6 to 9

Item 2.	Management’s Discussion and Analysis or Plan of Operation	9 to 14

Item 3.	Controls and Procedures

Part II - OTHER INFORMATION

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds

Item 6.	Exhibits

Signatures

PART I - FINANCIAL INFORMATION

ELCOM INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

	March 31,			December 31,
	2007			2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,159		$	1,086
Accounts receivable:
Trade		1,204
Less allowance for doubtful accounts		(23	)		(10	)
Accounts receivable, net		1,181
Prepaid expenses and other current assets
Total current assets		3,455			1,996
PROPERTY, EQUIPMENT AND SOFTWARE, AT COST:
Computer hardware and software		21,344			21,316
Furniture, equipment and leasehold improvements		3,088			3,088
		24,432			24,404
Less accumulated depreciation and amortization		(23,560	)		(23,445	)

OTHER ASSETS
Total assets	$	4,341		$	2,969

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Current portion of capital lease obligation	$			$
Accounts payable
Deferred revenue		1,320
Related party accrued salary, bonuses and interest		1,055			1,066
Accrued expenses and other current liabilities					1,043
Current liabilities of discontinued operations
Total current liabilities		4,087			3,854
CAPITAL LEASE OBLIGATION, NET OF CURRENT PORTION
OTHER LONG TERM LIABILITY
Total liabilities		4,473			4,306

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock, $.01 par value; Authorized -- 10,000,000 shares --
Issued and outstanding - none		--			--
Common stock, $.01 par value; Authorized - 700,000,000 shares -
Issued - 552,177,450 and 478,947,441 shares at March 31, 2007 and
December 31, 2006, respectively		5,522			4,789
Additional paid-in capital		130,570			128,455
Accumulated deficit		(130,945	)		(129,315	)
Treasury stock, at cost -- 530,709 shares		(4,712	)		(4,712	)
Accumulated other comprehensive loss		(567	)		(554	)
Total stockholders' equity (deficit)		(132	)		(1,337	)
	$	4,341		$	2,969

The accompanying notes are an integral part of these consolidated financial statements.

ELCOM INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)

(unaudited)

	Three Months Ended
	March 31,
	2007			2006
Net Revenues:
License, hosting services and other fees	$
Professional services
Total net revenues

Cost of revenues
Gross profit

Operating Expenses:
Selling, general and administrative		2,031			1,539
Research and development
Total operating expenses		2,246			1,869
Operating loss		(1,686	)		(1,113	)

Interest and other income net
Interest expense		(8	)		(7	)
Net loss before income taxes		(1,630	)		(1,079	)
Income taxes		--			--
Net loss		(1,630	)		(1,079	)

Other comprehensive income, net of tax		(13	)

Comprehensive loss	$	(1,643	)