Avaya has hinted at a number of product lines being scrapped as it looks to streamline its portfolio.
The vendor has published a “business update” slide deck on its website to give investors an insight into its future plans.
One slide, titled “Streamlined Product Portfolio” appears to detail the areas in which Avaya plans to focus and those in which it will “exit”. The actual product names, however, are not visible (see below).
The table also features a smaller set of products in which Avaya will "strategically invest".
UC Today has contacted Avaya for comment and will update this story if and when new information is available.
Avaya’s share price dropped by one third when the New York Stock Exchanged opened today.
Troubled Waters
Avaya has endured a tricky few months, which have seen it change CEO and announce redundancies as its journey to the cloud stutters.
The vendor has yet to publish its full Q3 results, due in August, while its Q4 numbers would typically be due around this time of the year.
It did, however, reveal that Q3 sales were 17 percent below the guidance it gave the market. It also revealed that it expects Q4 revenue to be between $460m and $480m. This is compared to $760m in the same quarter last year.
Looking longer term, Avaya expects annual revenue to decline in full years 22, 23 and 24, before returning to growth in 25. Sales in FY27 are forecast at $2.5bn – still lower than in 2019, 2020 and 2021.
The revenue declines, however, will be offset by a cost-cutting programme that will run over the next few years. This will eventually end up at run rate savings of $524m by Q1 2024.
