Avaya confirms potential of takeover or management buyout
Avaya has confirmed it is considering a takeover and management buyout after results "fell short of expectations".
The news comes just weeks after rumours emerged that competitor Mitel was preparing a bid, while reports of a private equity-backed deal surfaced before that.
Avaya generated revenue of $709m (£547.7m) in its Q2, which ended on 31 March 2019, up five per cent year on year.
However, it was down four per cent on Q1's figure, which was enough to trigger talks of selling.
The comms player has hired JP Morgan to "explore strategic alternatives" in order 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," Jim Chirico, Avaya CEO, told investors on an earnings call.
"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."
He placed some of the blame for the revenue shortfall on Reuters, which ran a story in March speculating about a buyout.
"This created uncertainty among our customers and partners and led to a noticeable change in buying behaviour," Chirico said.
"We have implemented a customer outreach and communications plan that emphasises our innovation, strength and market leadership to help address the situation.
"But bottom line, the timing of the speculation, while difficult to pinpoint a quantitative impact, clearly had an effect."
He attributed the revenue shortfall in Q2 to missing a deadline with a new partner offering in the contact centre space and expects it to resolve itself in the current quarter.
Another factor at play was the "operational execution issues" associated with the distribution of its new J Series desk phones among channel partners, where instead of supplying the demand for the product, it flooded the channel with an older series model.
The CEO told investors that it would take until early Q4 for this situation to be resolved.
"Our top-line results and earnings fell short of expectations," he stated.
"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."
Source: channelweb
Industry: Unified communication news
Latest Jobs
-
- Security Analyst - Internal role. London commutable. Permanent
- London
- N/A
-
Security Analyst - Internal role. London commutable opportunity. Operational Security - Investigate, escalate and proactively work to ensure household name remains protected. Project Security - Coordinate, log change requests with project delivery teams to meet security requirements Policy / compliance - work with team to aid in uplifting these as and where needed This role is role to investigate, escalate and proactively work to protect a globally recognised brand. You must have current hands on operational analytical security experience with Microsoft technology stack Someone with a SOC Analyst / security engineering background would be well suited. This position will join a small team and would suit someone that has broad experience across the security threat landscape. Experience / knowledge across industry GRC standards such NIST, ISO27001 etc very advantageous and a priority. You will work across multiple teams proactively working to secure the business. Must be able to commute to Central London 3 days a week. Visa sponsorship not available Apply today to find out more.
-
- Network / Security Infrastructure Engineer | West London | Permanent
- London
- N/A
-
Network / Security Infrastructure Engineer | West London | Current Config, Install, upgrade experience On prem / Datacetner experience essential. Hands on experience MUST include: Routing, Switching, Network Security (firewall, IDS etc), Microsoft exchange / Exchange 365. Scripting / automation experience wanted. Python, Powershell etc Regular travel to West London is required. Visa sponsorship not available. Apply today for more information chris.holt@dclsearch.com Use this whatapp link to reach out https://wa.me/message/6USF5RAQBOZIP1
-
- SailPoint File Access Manager Consultant/ Architect
- N/A
- discussed on applications
-
SailPoint File Access Manager (SailPoint FAM) Consultant/ Architect is required for an up coming projects, Ideally looking for someone with experience in Designing and deploying SailPoint FAM , this is a new Deployment, you will work with customer in the initial workshop phase, to understand requirements and to get the initial design, you will then be responsible for deploying the solution. This is a home based role, with some onsite visits required during the length of the project. We are looking for someone who has previous experience in Deploying SailPoint FAM (ideally done design work) Need to have experience with SharePoint and ideally Azure and Share file
-
- DV Cleared CyberArk Consultant- Contract
- City of London
- Upto £700 per day
-
CyberArk Consultant is needed to be responsible for leading the deployment of CyberArk solutions for this Secure government site You will work with customer, helping to create CyberArk Strategic Roadmaps, on-boarding accounts, product and process integration into the CyberArk Solution and Proviso of Installation and technical Documentation. We are looking for this individual to have experience in: In CyberArk deployment, and ideally leady the deployment both strategically and also technically for this project we need the consultant to hold current DV cleared status For the right individual this could be a long term project.