Avaya revenue drops 11%, posts $27 million net loss

Avaya Scopia
Avaya today said its revenue fell 11.21 percent to $958 million in the first quarter ended December 31, 2015.

Avaya reported a net loss of $27 million against a net profit of $3 million.

Avaya generated $414 million from GCS, $50 million from networking and $494 million AGS division. $528 million revenue came from Americas, $239 million from EMEA, $106 million Asia Pacific and $85 million from Canada and Latin America.

“Revenue declined year-over-year and was below our expectations while free cash flow was positive and we continued to execute on our cost reduction initiatives,” said Kevin Kennedy, president and CEO of Avaya. “As we progress through fiscal 2016, Avaya expects further improvements to our cost structure while driving progress on our key initiatives.”

Avaya revenue from key markets

U.S. 55% 

EMEA 25%

Asia Pacific 11% 

Americas International 9%

Avaya said estimated total contract value was $3.1 billion, up 5 percent from the first quarter of fiscal 2015. This amount includes over $900 million for private cloud and managed services, a 16 percent increase from the first quarter of fiscal 2015.

Revenue from flagship products and services accounted for 49.6 percent of revenue and revenue from core products and services accounted for 43.7 percent of total revenue. Cloud and managed services revenue grew 5 percent year-over-year and contact center revenue grew 5 percent year-over-year on a normalized basis, said Avaya.

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