Avaya’s revenue year-over-year is down US$79 million which the company attributes to lower demand for products and services primarily due to extended procurement cycles resulting from its chapter 11 bankruptcy protection filing in the US.
Avaya moved into chapter 11 in January this year with almost US$6 billion in debt and plans to reduce that debt to US$2.9 billion.
In the third quarter results released on Tuesday, Avaya also reported that its GAAP operating loss was US$44 million, inclusive of US$52 million of goodwill impairment and US$53 million of costs “in connection with certain legal matters”, which compares to operating income of US$64 million for the prior quarter and US$58 million for the third quarter of fiscal 2016.
“The support of our amended Plan of Reorganisation by a majority of holders of our first lien debt and the settlement reached with the US Pension Benefit Guaranty Corporation gives us a clear and viable path to emerge from chapter 11 this fall,” said Kevin Kennedy, president and chief executive.
“As we work through our debt restructuring, Avaya continues to transform into a leading provider of software and services focused on delivering cloud-based business communications and innovative next-generation workflow automation solutions with world-class customer satisfaction.
“In addition, we continue to build momentum with our newest generation of solutions including Avaya Oceana, Avaya Equinox, Avaya Breeze, Zang Office and Zang Spaces.”