For Immediate Release: 09-Jan-2003
BASKING RIDGE, N.J., USAvaya Inc., a leading global provider of communications networks
to businesses, today said preliminary results indicate first fiscal
quarter 2003 revenues in the range of $1.060 billion to $1.070
billion and a loss of between eight cents and 10 cents per diluted
share from ongoing operations. The company said it ended the first
fiscal quarter with a cash balance of $650 million, an increase of
more than $50 million sequentially from the fourth fiscal quarter
of 2002 due primarily to continued improvements in the management
of accounts receivables. Avaya noted the preliminary loss per share reflects an
improvement in gross margin and a reduction in selling, general and
administrative expenses sequentially from the fourth fiscal quarter
as a result of its ongoing restructuring. The loss per share amount
also includes a higher expense associated with an accrual for the
company's incentive programs for the first fiscal quarter of
2003. On Jan. 21, Avaya will report first fiscal quarter 2003 results,
as well as provide a business update. About Avaya
Avaya Inc. designs, builds and manages communications networks for
more than one million businesses around the world, including 90
percent of the Fortune® 500. A world leader in secure and reliable
Internet Protocol (IP) telephony systems, communications software
applications and services, Avaya is driving the convergence of
voice and data applications across IT networks enabling businesses
large and small to leverage existing and new networks to enhance
value, improve productivity and gain competitive advantage. For
more information visit the Avaya Web site: http://www.avaya.com This news release contains forward-looking statements regarding
the company's outlook for revenue and earnings based on current
expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to
differ materially. These risks and uncertainties include, but are
not limited to, general industry market conditions and growth rates
and general domestic and international economic conditions
including interest rate and currency exchange rate fluctuations and
the economic, political, and other risks associated with
international sales and operations, U.S. and foreign government
regulation, price and product competition, rapid technological
development, dependence on new product development, the successful
introduction of new products, the mix of our products and services,
customer demand for our products and services, the ability to
successfully integrate acquired companies, control of costs and
expenses, the ability to implement in a timely manner our
restructuring plans, and the ability to form and implement
alliances. For a further list and description of such risks and
uncertainties, see the reports filed by Avaya with the Securities
and Exchange Commission. Avaya disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise. | 
