Elcom Intl, Inc - Financial Statements...

Elcom Intl, Inc - Recent Material Event

Item 1.		Financial Statements

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

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

		Consolidated Statements of Cash Flows for the Nine-Month Periods Ended September 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.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

	September 30,			December 31,
	2007			2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$			$	1,086
Accounts receivable:
Trade
Less allowance for doubtful accounts		(21	)		(10	)
Accounts receivable, net
Prepaid expenses and other current assets
Total current assets		2,111			1,996
PROPERTY, EQUIPMENT AND SOFTWARE, AT COST:
Computer hardware and software		21,466			21,316
Furniture, equipment and leasehold improvements		3,088			3,088
		24,554			24,404
Less accumulated depreciation and amortization		23,807			(23,445	)

OTHER ASSETS
Total assets	$	2,872		$	2,969

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Current portion of capital lease obligations	$			$
Accounts payable
Deferred revenue		1,304
Related party accrued salary, bonuses and interest					1,066
Accrued expenses and other current liabilities					1,043
Current liabilities of discontinued operations
Total current liabilities		3,745			3,854
CAPITAL LEASE OBLIGATION, NET OF CURRENT PORTION
OTHER LONG TERM LIABILITY
Total liabilities		4,015			4,306

STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, $.01 par value; Authorized - 700,000,000 shares - Issued - 552,177,450 and 478,947,441 shares at September 30, 2007 and December 31, 2006, respectively		5,522			4,789
Additional paid-in capital		130,845			128,455
Accumulated deficit		(132,244	)		(129,315	)
Treasury stock, at cost -- 530,709 shares		(4,712	)		(4,712	)
Accumulated other comprehensive loss		(554	)		(554	)
Total stockholders' equity (deficit)		(1,143	)		1,337
	$	2,872		$	2,969

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

ELCOM INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE LOSS

(in thousands, except per share data)

(unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
Net Revenues:
License, hosting services and other fees	$			$			$	2,475		$	2,072
Professional services								1,463
Total net revenues		1,410						3,938			2,457

Cost of revenues
Gross profit								2,952			2,010

Operating Expenses:
Selling, general and administrative		1,548			1,740			5,438			4,874
Research and development
Total operating expenses		1,625			2,122			5,956			5,852
Operating loss		(668	)		(1,563	)		(3,004	)		(3,842	)

Interest and other income net