RALEIGH-DURHAM, NC–(BUSINESS THREAD)–Avaya Holdings Corp. (NYSE: AVYA) today announced certain preliminary financial results for the third quarter ended June 30, 2022 and expects to report full third quarter results on August 9, 2022.
Based on currently available information for the third quarter ended June 30, 2022, the company expects revenue to be between $575 million and $580 million, compared to guidance of $685 million to $700 million, and adjusted EBITDA between $50 million and $55 million. , compared to guidance of $140 million to $150 million.1 The company is also finalizing tests of its goodwill and intangible assets that are expected to result in significant non-cash impairment charges beginning on 30 of June 2022.
Avaya also announced that it has initiated cost-cutting measures that are expected to primarily affect the company’s general selling, general and administrative expenses, as well as discretionary expenses. These actions are expected to generate between $225 million and $250 million in annual cost reductions beginning in the first quarter of fiscal year 2023. The company expects to minimize any impact to customers in terms of sales and support, and remains committed to with Avaya’s long-term innovation. and product development roadmaps.
The company’s prior financial guidance should no longer be relied upon. Management will provide additional information in conjunction with the upcoming release of its full third quarter 2022 financial results.
The financial results for the three months ended June 30, 2022 included in this release are preliminary, have not been reviewed or audited, are based on Avaya’s estimates and were prepared prior to the completion of the closing process financial of the company. The preliminary financial results should not be viewed as a substitute for the company’s full third quarter results and do not present all of the information necessary to understand Avaya’s financial performance as of June 30, 2022. Accordingly, they are not ‘must place undue reliance on this preliminary information. data
Conference call and webcast
Avaya expects to report financial results for the third quarter of fiscal 2022 ended June 30, 2022 on Tuesday, August 9, 2022 before the market opens. Avaya will host a live webcast and conference call to discuss its financial results at 8:30 am ET.
To access the conference call by telephone, listeners should dial +1-877-858-7671 in the US or Canada and +1-201-389-0939 for international calls. A replay of the conference call will be available for one week by dialing +1-877-660-6853 in the US or Canada and +1-201-612-7415 for international calls, using the access code: 13731758. Broadcast live webcast, listeners should go to the Avaya website’s investor page https://investors.avaya.com/. After the live webcast, a replay will be available for a period of one year.
Businesses are built on the experiences they deliver, and millions of those experiences are delivered every day by Avaya Holdings Corp. (NYSE: AVYA). Avaya is shaping what’s next for the future of work, with innovation and partnerships that deliver game-changing business benefits. Our cloud communications solutions and multi-cloud application ecosystem enable personalized, intelligent and effortless customer and employee experiences to help achieve strategic ambitions and desired outcomes. Together, we’re committed to helping you grow your business by delivering Experiences that matter. More information at http://www.avaya.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements”. All statements other than statements of historical fact are “forward-looking” statements for purposes of US federal and state securities laws. These statements can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “attempt”, “may”, “could”. ” “our view,” “plan,” “potential,” “preliminary,” “predict,” “should,” “will” or “would” or its negative or other variations or comparable terminology. Avaya has based these forward-looking statements on its current expectations, assumptions, estimates and projections. Although the Company believes that such expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are predictions only and involve known and unknown risks and uncertainties, many of which are beyond its control. Risks and uncertainties that could cause these forward-looking statements to be inaccurate include, but are not limited to, the completion of the Company’s third quarter financial statements (including the completion of the Company’s impairment tests), the completion of the standard quarter closing processes and the impact and timing. of any cost saving measures, as well as other factors discussed in the Company’s Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC “). These risks and uncertainties could cause the company’s actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by these forward-looking statements. For a list and more detailed description of these risks and uncertainties, see the company’s filings with the SEC which are available at www.sec.gov. The Company cautions you that the list of material factors included in the Company’s SEC filings may not contain all material factors that are important to you. Furthermore, in light of these risks and uncertainties, it is possible that the matters referred to in the forward-looking statements contained in this press release may not occur. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
Use of non-GAAP (adjusted) financial measures.
The information provided in this release includes non-GAAP financial measures that differ from measures calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). EBITDA is defined as net income (loss) before income taxes, interest expense, interest income and depreciation. Adjusted EBITDA is adjusted EBITDA plus excluding certain charges and other adjustments described in our SEC filings and in the following tables. We believe that including additional information about Adjusted EBITDA is appropriate because it serves as a basis for determining management and employee compensation and is used as a basis for calculating covenants in our credit agreements. In addition, we believe that Adjusted EBITDA provides greater comparability between our historical results and results that reflect purchase accounting and our current capital structure. We also present Adjusted EBITDA because we believe analysts and investors use these measures to analyze our results. Adjusted EBITDA measures our financial performance based on operating factors that management can affect in the short term, such as our pricing strategies, volume, costs and organizational expenses, and presents our financial performance in a way that can be compared more easily. to previous quarters or financial years. EBITDA and Adjusted EBITDA have limitations as analytical tools. EBITDA measures do not represent net income (loss) or cash flow from operations, as these terms are defined by GAAP and do not necessarily indicate whether cash flows will be sufficient to fund operating needs. effective Adjusted EBITDA excludes the impact of gains or charges arising from matters that we do not consider indicative of our ongoing operations but still impact our net income. In particular, our adjusted EBITDA formulation allows adjustment for certain amounts that are included in the calculation of income (net loss), however, these are recurring expenses that may vary and are difficult to predict. Also, these terms are not necessarily comparable to other subtitles of other companies with similar titles due to possible inconsistencies in the calculation method.
The Company presents constant currency information to provide a framework for evaluating how the Company’s underlying businesses are performing, excluding the effect of fluctuations in foreign currency rates.
1 Guidance presented using exchange rates as of April 30, 2022. Preliminary results presented using exchange rates as of June 30, 2022.