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Avaya announce 4% loss in Q1

MSPs
Avaya have released financial results for the last six months ending March 31st 2012 in a recent SEC Filing comparing them to Q1 of 2011. A drop of 4.2% in revenues could be a potential hindrance if rumours concerning an IPO come to fruition.

These figures have come directly from the Avaya SEC filing and losses have been attributed to a decrease in revenues in their product line and infrastructure solution products in the US. Decreases in operational costs have reduced losses. Parts of Avaya’s SEC filing can be read below.

“Our revenues for the six months ended March 31, 2012 decreased 4% as compared to the six months of the corresponding period in the prior year, primarily as a result of lower sales of our infrastructure solution products primarily in EMEA and our government business in the U.S.”

“Our net loss for the six months ended March 31, 2012 and 2011 was $188 million and $612 million, respectively. The decrease in our net loss is primarily attributable to the early extinguishment of debt related to the Company's debt refinancing in the corresponding period of the prior year and an increase in operating income as described above, as well as a decrease in income taxes and interest expense, for the six months ended March 31, 2012 as compared to the six months ended March 31, 2011.”

“We earned operating income for the six months ended March 31, 2012 of $16 million as compared to an operating loss of $86 million for the six months ended March 31, 2011, an increase of $102 million. The increase in operating income is attributable to the continued benefit from cost savings initiatives and the substantial completion of the integration of the operations of Avaya and NES, partially offset by the decrease in infrastructure solutions products revenue and an increase in restructuring charges.”

“Operating income (loss) for the six months ended March 31, 2012 and 2011 includes non-cash expenses for depreciation and amortization of $286 million and $335 million and share-based compensation of $5 million and $6 million for each of the periods, respectively.”