Avaya Reveals Exciting Q3 Financial Results

Avaya continues to excel in Q3

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Avaya Q3 Results
Unified Communications

Published: August 20, 2019

Rebekah Carter - Writer

Rebekah Carter

Leading communications company, Avaya, recently announced the financial results for their third quarter, ending June 30th, 2019. The president and CEO of the company, Jim Chirico, noted that he was pleased with the solid execution that the company has continued to show during the last quarter, which helped to lead to some sensational outcomes for the business. In August, for instance, Avaya was awarded two incredible government opportunities, including a chance to work with the Social Security Administration on a contract valued at $400 million.

In a press release about the latest results, Chirico said that the process that the company has made helped to drive its third-quarter results towards the higher end of its guidance. Today, the company is looking forward to another successful quarter to take it into the end of the year. Some of the most significant results from the report include:

  • Public cloud seats increased by a rate of over 170% year-on-year
  • Recorded GAAP operating margin of 85.5% and non-GAAP operating margin of 20.1%
  • GAAP revenue of $717 million and non-GAAP revenue of $720 million

A Positive Third Quarter for Avaya

Avaya achieved a fantastic range of outcomes in the third quarter of 2019, including a GAAP revenue of $717 million – which is $8 million higher than the second quarter of fiscal 2019, and 25 million higher than the same period last year. Non-GAAP revenue was also $6 million higher than the second quarter of this year at $720 million, although it was $35 million lower than the third quarter of 2018.

Chirico noted that as part of an update to the strategic strategy that Avaya has in place with J.P Morgan, the company is currently in advanced discussions with numerous parties, looking for ways to improve shareholder value. This new planning process should be finished by the end of August 2019.

Additionally, during this quarter, Avaya also recorded a non-cash impairment charge of $657 million, which was related to the Products and Solutions Segment of the business. This charge came after an assessment prompted by a decline in the company’s stock price period. The company believes that the decline was caused by the revision of the Avaya 2019 fiscal guidance report. The management team at Avaya plans to release a new forecast after a review of its strategic initiatives.

Significant Changes During Q3

What Happens in an Avaya Minute
What Happens in an Avaya Minute? – click to enlarge

Despite some concerns around Avaya’s performance in some places during the third quarter of this year, the company has remained consistently strong for the most part. In Q3, Avaya was selected for the Intel AI Builder’s program (more on this on UC Today, soon), to help develop advanced solutions for AI-enhanced business innovation. Additionally, Avaya announced new partnerships with Tenfold, and Even Flow Distribution. Tenfold will help customers integrate their Avaya call fall solutions with state-of-the-art CRM providers. On the other hand, Even Flow distribution will ensure that Avaya’s solutions can be more easily distributed around South Africa.

Avaya also announced a partnership with the Standard Chartered Bank to help deliver a multi-year customer experience transformation plan that will ensure that the bank can provide a more digitally-enhanced environment for its clients via the Avaya OneCloud Private Solution. What’s more, the brand received the Contact Center Vendor of the Year award as part of the 2019 India ICT awards, with Frost and Sullivan.

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