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

Elcom Intl, Inc - Recent Material Event

Item 1. Financial Statements

Consolidated Balance Sheets as of June 30, 2007 (unaudited)
and December 31, 2006

Consolidated Statements of Operations and Other Comprehensive
Income (Loss) for the Three- and Six-Month Periods
Ended June 30, 2007 and 2006 (unaudited)

Consolidated Statements of Cash Flows for the Six-Month Periods Ended
June 30, 2007 and 2006 (unaudited)

Notes to Consolidated Financial Statements (unaudited)

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

Item 3. Controls and Procedures

Part II - OTHER INFORMATION

Item 4. Unregistered Sales of Equity Securities and Use of Proceeds

Item 5. Exhibits

Signatures

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ELCOM INTERNATIONAL, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

	June 30,			December 31,
	2007			2006

ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,839		$	1,086
Accounts receivable:
Trade		1,209
Less allowance for doubtful accounts		(21	)		(10	)
Accounts receivable, net		1,188
Prepaid expenses and other current assets
Total current assets		3,166			1,996
PROPERTY, EQUIPMENT AND SOFTWARE, AT COST:
Computer hardware and software		21,404			21,316
Furniture, equipment and leasehold improvements		3,088			3,088
		24,492			24,404
Less accumulated depreciation and amortization		(23,682	)		(23,445	)

OTHER ASSETS
Total assets	$	3,990		$	2,969

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Current portion of capital lease obligations	$			$
Accounts payable
Deferred revenue		1,492
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		4,278			3,854
CAPITAL LEASE OBLIGATION, NET OF CURRENT PORTION
OTHER LONG TERM LIABILITY
Total liabilities		4,604			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 June 30, 2007
and December 31, 2006, respectively		5,522			4,789
Additional paid-in capital		130,715			128,455
Accumulated deficit		(131,584	)		(129,315	)
Treasury stock, at cost — 530,709 shares		(4,712	)		(4,712	)
Accumulated other comprehensive loss		(555	)		(554	)
Total stockholders' equity (deficit)		(614	)		1,337
	$	3,990		$	2,969

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

ELCOM INTERNATIONAL, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2007		2006		2007		2006
Net Revenues:
License, hosting services and other fees	$		$		$	1,532	$	1,436
Professional services
Total net revenues		1,702				2,528		1,774

Cost of revenues
Gross profit		1,434				1,994		1,451

Operating Expenses:
Selling, general and administrative		1,858		1,595		3,889		3,134
Research and development
Total operating expenses		2,084		1,861