Connect your employees to your customers across the channels they use most.
Find a cloud that’s flexible, secure, and entirely dedicated to your organization.
Rely on our team of experts to help you get the most from your investment.
Serve customers better with employee experiences that boost productivity and collaboration.
Call, meet, message, and more—all in one app.
Connect people, tasks, tools, and more in a customizable app built for immersive collaboration.
Automate and personalize business processes with prebuilt or customized apps.
Explore our complete portfolio of devices for individuals and conference rooms.
Start a monthly subscription to productivity-enhancing Avaya devices.
Deliver effortless experiences for customers and employees at every touchpoint.
Help your contact center run smoothly, no matter where your employees are.
Find an Authorized Avaya Channel Partner in your part of the world.
Build new, innovative communications solutions via Avaya’s open solution platforms.
See our partnerships with leading technology companies for unique and value-adding solutions.
Explore all of the partner types and programs available at Avaya
Sell the Avaya portfolio with benefits, incentives, lead gen, training, and marketing resources.
Transition customers to the cloud fast and on budget, supported by Avaya services and features.
Get to know Avaya through our blogs. Insights on collaboration, customer experience, AI, digital.
Watch videos by topic or just browse what’s new. Interviews, solutions, how-to’s, more.
See inspiring ways companies are using Avaya solutions to change the world of work.
Look at what's new in our world—and how it benefits yours.
Listen in on conversations with tech innovators who are transforming the experience economy.
Learn about the privacy, compliance, and security inside Avaya solutions.
Review the terms and policies associated with Avaya software and services.
Access a full range of information and assistance for your Avaya solution.
Meet Avaya experts at our events, webinars, expos, conferences and more.
Engage with us in an immersive and interactive experience—on site, virtually, or a combo.
In person or online, gain a full understanding of your Avaya solution and its capabilities.
SANTA CLARA, Calif.-- May 9, 2019 -- Avaya Holdings Corp. (NYSE: AVYA) today reported financial results for the second quarter ended March 31, 2019.
"Our topline results and earnings fell short of expectations," said Jim Chirico, President and CEO of Avaya. "In response, we have implemented a number of corrective actions to drive improved performance. While I'm disappointed in our results last quarter, overall, I remain confident about our path forward given the momentum and traction we are seeing in many segments of our business including cloud, services and emerging technologies."
Mr. Chirico added, "Following the receipt of expressions of interest, the Company has engaged J.P. Morgan to assist in exploring strategic alternatives intended to maximize shareholder value. The Board has not set a timetable for the process nor has it made any decisions related to any strategic alternatives at this time. There can be no assurance that the exploration of strategic alternatives will result in any particular outcome. The Company does not intend to provide updates unless or until it determines that further disclosure is necessary."
Second Quarter Fiscal 2019 Financial Results:
(1)Non-GAAP revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin and adjusted EBITDA are not measures calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP"). Refer to the Supplemental Financial Information accompanying this press release for more information, including a reconciliation of these measures to the most closely comparable measure calculated in accordance with GAAP.
Second Quarter Fiscal 2019 Business Metrics *
*We define TCV as the value of all active ratable contracts that have not been recognized as revenue, including both billed and unbilled backlog. We define free cash flow as cash flow from operating activities less capital expenditures.
Second Quarter Fiscal 2019 Company Highlights
Financial Outlook - Q3 Fiscal 2019 under ASC 606
Our financial outlook reflects the adoption of ASC 606, which became effective for Avaya on October 1, 2018. Avaya has adopted ASC 606 using the modified retrospective transition method.
Financial Outlook - Fiscal 2019 under ASC 606
Avaya's outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments, or other significant transactions that may be completed after May 9, 2019. Actual results may differ materially from Avaya's outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below.
Conference Call and Webcast
Avaya will host a live webcast and conference call to discuss its financial results at 8:30 a.m. Eastern Time on May 9, 2019. To access the live conference call by phone, listeners should dial +1-833-224-0545 in the U.S. or Canada and +1-647-689-4064 for international callers. To join the live webcast, listeners should access the investor page of Avaya's website at https://investors.avaya.com.
Following the live webcast, a replay will be available on the investor page of Avaya's website for a period of one year. A replay of the conference call will be available for one week soon after the call by phone by dialing +1-800-585-8367 in the U.S. or Canada and +1-416-621-4642 for international callers, using the conference access code: 6988044.
Use of non-GAAP (Adjusted) Financial Measures
The information furnished in this release includes non-GAAP financial measures that differ from measures calculated in accordance with generally accepted accounting principles in the United States of America ("GAAP"), including the combined six month period ending March 31, 2018 and financial measures labeled as "non-GAAP" or "adjusted."
Although GAAP requires that we report on our results for the periods October 1, 2017 through December 15, 2017 (the "Predecessor" period) and December 16, 2017 through March 31, 2018 (the "Successor" period), separately, management reviews the Company's operating results for the six months ended March 31, 2018 by combining the results of these periods because such presentation provides the most meaningful comparison of our results. The Company cannot adequately benchmark the operating results of the 106-day period ended March 31, 2018 against any of the previous periods reported in its condensed consolidated financial statements and does not believe that reviewing the results of this period in isolation would be useful in identifying any trends regarding the Company's overall performance. Management believes that the key performance metrics such as revenue, gross margin and operating income, among others, when combined for the six months ended March 31, 2018 provide meaningful comparisons to other periods and are useful in identifying current business trends.
EBITDA is defined as net income (loss) before income taxes, interest expense, interest income and depreciation and amortization. Adjusted EBITDA is EBITDA further adjusted to exclude certain charges and other adjustments described in our SEC filings and the tables below.
We believe that including supplementary information concerning adjusted EBITDA is appropriate because it serves as a basis for determining management and employee compensation and it is used as a basis for calculating covenants in our credit agreements. In addition, we believe adjusted EBITDA provides more comparability between our historical results and results that reflect purchase accounting and our current capital structure. We also present EBITDA and adjusted EBITDA because we believe analysts and investors utilize these measures in analyzing our results. Adjusted EBITDA measures our financial performance based on operational factors that management can impact in the short-term, such as our pricing strategies, volume, costs and expenses of the organization and it presents our financial performance in a way that can be more easily compared to prior quarters or fiscal years.
EBITDA and adjusted EBITDA have limitations as analytical tools. EBITDA measures do not represent net income (loss) or cash flow from operations as those terms are defined by GAAP and do not necessarily indicate whether cash flows will be sufficient to fund cash needs. However, these terms are not necessarily comparable to other similarly titled captions of other companies due to the potential inconsistencies in the method of calculation. Adjusted EBITDA excludes the impact of earnings or charges resulting from matters that we consider not to be indicative of our ongoing operations. In particular, our formulation of adjusted EBITDA allows adjustment for certain amounts that are included in calculating net income (loss), however, these are expenses that may recur, may vary and are difficult to predict.
We also present the measures non-GAAP revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP operating margin, as a supplement to our unaudited condensed consolidated financial statements presented in accordance with GAAP. We believe these non-GAAP measures are the most meaningful for period to period comparisons because they exclude the impact of the earnings and charges noted in the applicable tables below that resulted from matters that we consider not to be indicative of our ongoing operations.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from the non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.
We do not provide a forward-looking reconciliation of expected third quarter and full year fiscal 2019 non-GAAP revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin or adjusted EBITDA guidance as the amount and significance of special items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful.
The following tables present Successor, Predecessor and combined results and reconcile historical GAAP measures to non-GAAP measures.
Source: Avaya Newsroom
Businesses are built by the experiences they provide, and every day millions of those experiences are delivered by Avaya Holdings Corp. (NYSE: AVYA). Avaya is shaping the future of customer experiences, with innovation and partnerships that deliver game-changing business benefits. Our communications solutions power immersive, personalized, and memorable customer experiences to help organizations achieve their strategic ambitions and desired outcomes. Together, we are committed to helping grow your business by delivering Experiences That Matter. Learn more at http://www.avaya.com/en/
Cautionary Note Regarding Forward-Looking Statements
This document contains certain “forward-looking statements.” All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," “our vision,” "plan," "potential," "preliminary," "predict," "should," "will," or “would” or the negative thereof or other variations thereof or comparable terminology and include, but are not limited to, expected cash savings and statements about growth, exchange listing and improved operational metrics. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. The factors are discussed in the Company’s Registration Statement on Form 10 filed with the Securities and Exchange Commission, may cause its actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a further list and description of such risks and uncertainties, please refer to the Company’s filings with the SEC that are available at www.sec.gov. The Company cautions you that the list of important factors included in the Company’s SEC filings may not contain all of the material factors that are important to you. In addition, considering these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.