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
-
- IAM Consultant- OKTA
- Germany
- upto €90,000 plus benefits
-
I am looking for an experienced IAM process Manager to help drive forward a series of IAM implementation for a global Manufacturing business, Ideally you will be skilled with Okta and have knowledge of PAM Solutions, You will be responsible for: Driving the design and continuous improvement of complex IAM solutions in close collaboration with business partners Consult on the optimisation of IAM processes and design proper IT-based solutions to meet availability and quality targets Define technical specifications for SW-development (standards, design patterns, test cases, scenarios) and manage the life cycle of designed solutions Actively scan for relevant innovations and new technologies to identify further potential for improving IAM solutions and processes using OKTA Analyse new features of the regular Okta releases We are looking for someone with strong IAM experience as an Architect, Analyst, Technical Engineer, or similar role in the Identity and Security domain Experience with relevant certifications in development/administration, design and configuration of the Okta IAM platforms Familiar with LCM - joiners, movers, leavers, application federation - SAML, OIDC, SCIM and many other IAM terms Good mix of competences in IAM business process and project management concepts and tools e.g., ServiceNow, Jira, PRINCE2, SCRUM (agile)
-
- SAP Security Consultant
- France
- upto €70,000 plus benefits
-
I am looking for an experienced SAP Security Consultant. The ideal candidate will have a strong understanding of SAP security concepts and be able to apply them to real-world scenarios. ideally you will also have experience with Securitybridge or Onapsis, or a similar SAP security tool. Your responsibilities will include: Reviewing and auditing SAP security settings and controls Identifying and remediating security vulnerabilities Implementing security best practices Educating users on SAP security Experience experience in SAP security Experience with Securitybridge or Onapsis, or a similar SAP security tool would be very advantageous Strong understanding of SAP security concepts Excellent problem-solving and analytical skills Excellent communication and presentation skills Fluent in French & English
-
- Post Grad MSc Cyber security - Junior Cyber Risk Analyst wanted. UK
- United Kingdom
- Entry role
-
The perfect start to your new Cyber Security Career. Post Graduate Cyber Risk Analyst Wanted. Are you are fresh from earning your Cyber Security MSc and eager to start your career in Cyber Security? We are looking for a recent post graduate to join a forward thinking Cyber Security Consultancy for the ideal entry role into Cyber Security. Whilst employed industry experience is not expected, as full training and support will be provided, a history of recent education in Cyber Security / Cyber Risk is essential. We are looking for someone with an inquisitive mind, who is confident to ask the right questions and who isn't afraid to challenge the status quo. Superb communication skills are a must (in person, written and verbal) This is a UK based role that is remote first with monthly travel (1-2 a month) to meet with the team and in time to meet clients. If you aren’t available to travel this isn’t the opportunity. We are unable to provide VISA sponsorship as there will be a requirement to achieve Security clearance If you're adaptable, open to fresh perspectives, and excited to be part of a forward-thinking team and looking for an opportunity to help make a difference in a Cyber consulting role, this opportunity is for you. For more information apply here……
-
- Microsoft Exchange Contractor | London | OUTSIDE IR35 | SC Cleared
- London
- OUTSIDE IR35
-
Microsoft Exchange Contractor | London | OUTSIDE IR35 | SC Cleared • We require someone that has experience of migration exchange from windows server 2012 to 2019. • In depth understand of On-Prem exchange server management and deployment. • Experience migrating On-Prem exchange servers from 2012 upwards. • Secure Email Gateway experience essential Due to the nature of the requirement the individual must be commutable to London 2-3 days a week.