Avaya Holdings Corp. (NYSE: AVYA) today announced preliminary unaudited revenue for the first quarter of fiscal 2018 ended December 31, 2017. Due to the complexities of applying fresh start accounting as of December 15, 2017 as the result of our emergence from bankruptcy, Avaya expects to provide complete first quarter of fiscal 2018 results the week of February 26, 2018. The company will provide conference call and webcast details at a future date.
Due to the company’s emergence from bankruptcy on December 15, 2017, the results for the quarter are required to be presented separately as the predecessor period from October 1, 2017 through December 15, 2017 (the “Predecessor Period”) and the successor period from December 16, 2017 through December 31, 2017 (the “Successor Period”). GAAP revenue for the first quarter of fiscal 2018 is expected to be in the range of $600 to $604 million for the Predecessor Period and $146 to $150 million for the Successor Period. For comparative purposes, GAAP revenue for the quarter ending September 30, 2017 was $790 million, including $5 million related to the Networking business and $875 million for the quarter ending December 31, 2016, including $66 million related to the Networking business. The company sold its Networking business on July 14, 2017.
Non-GAAP revenue for the quarter ended December 31, 2017 is expected in the range of $769 to $779 million, a decline of approximately 1% to 2% sequentially, excluding the Networking business, and 4% to 5% lower than the first quarter of the prior fiscal year, excluding the Networking business.
The company noted that the revenue for the first quarter ended December 31, 2017 is preliminary and subject to the completion of financial closing and review procedures performed by its independent registered public accounting firm. There can be no assurance that the company’s final revenue will not differ from these preliminary estimates as a result of quarter-end closing, review procedures, or review adjustments, and any such changes could be material.
“I’m pleased with our preliminary revenue given Avaya’s emergence was not until the last two weeks of the quarter and we continue to stabilize our business,” said Jim Chirico, president and CEO. “This is a great start to fiscal year 2018 as we emerge a stronger company with an enhanced capital structure that positions us well for the growth opportunities in front of us.”
Avaya enables the mission critical, real-time communication applications of the world’s most important operations. As a global leader in delivering superior communications experiences, Avaya provides a complete portfolio of software and services for contact center and unified communications — offered on premises, in the cloud, or a hybrid. Today’s digital world requires communications enablement, and no other company is better positioned to do this than Avaya. For more information, please visit www.avaya.com
Use of non-GAAP (Adjusted) Financial Measures
The information furnished in this release includes non-GAAP financial measures that differ from measures calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”), including non-GAAP revenue.
We believe that including supplementary information concerning non-GAAP revenue is appropriate because such information provides more comparability between our historical results. Accordingly, we present our financial performance in a way that can be more easily compared to prior quarters or fiscal years.