Saturday, 11 May 2019 09:29

Avaya says looking at potential buyout as 2Q2019 revenue dips

By

Unified communications vendor Avaya has seen a dip in revenue during the second quarter of fiscal 2019, with the company saying it earned US$709 million, a fall of 3.9% from the first quarter, and adding that it was exploring a buyout.

The company had told investors in February that it expected revenue for the second quarter to be between US$730 million and US$760 million.

President and chief executive Jim Chirico said in a statement: "Following the receipt of expressions of interest, the company has engaged J.P. Morgan to assist in exploring strategic alternatives intended to maximise 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."

In March, a report said that Avaya was trying to effect a leveraged buyout from a private equity company, with its value, inclusive of debt, estimated at about US$5 billion.

A Bloomberg report a month later said it was planning an auction, after it had received unsolicited offers from potential purchasers. A Wall Street Journal article the same month said Avaya was holding talks to join its rival Mitel Networks in a stock deal worth more than US$2 billion.

"Our topline results and earnings fell short of expectations," Chirico said. "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."

Avaya entered the public market in January after it emerged from Chapter 11 bankruptcy.

The exit from Chapter 11, which Avaya moved into in January the same year, was effected at a time when it had about US$6 billion in debt which it planned to cut down to US$2.9 billion. The debt was a hangover from its previous leveraged buyout by private firms TPG Capital and Silver Lake who paid US$8.3 billion for the firm in 2007.

Avaya is a big provider of telephony systems. It was a part of Lucent Technologies and became a separate unit in 2000.


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments