Menu
Avaya says bankruptcy is a step toward software and services

Avaya says bankruptcy is a step toward software and services

Avaya needs to shed debt as its focus shifts away from hardware, the company says

Networking and collaboration vendor Avaya declared bankruptcy on Thursday, calling the move part of its transition from a hardware to a software and services company.

Avaya emerged from Lucent Technologies in 2000 with a focus on phone switches, enterprise networking gear, and call-center systems. But with the shift toward mobile phones and cloud-based tools for communication, and a tight market for enterprise network equipment, the company has been changing its focus.

It plans to keep operating during the bankruptcy thanks to its cash from operations and US$725 million in financing that still needs approval by the U.S. Bankruptcy Court. Avaya said its foreign affiliates aren’t included in the filing and won’t be affected.

The company plans to keep its contact center business, which had been rumored for a possible sale, but it’s in talks to sell other unnamed assets.

The Chapter 11 bankruptcy filing is intended to cut Avaya’s debt and interest expenses from a capital structure that dates back more than 10 years to when the company was primarily a hardware vendor, CEO Kevin Kennedy said in a press release. "Our business is performing well," he said.

On Thursday, the company reported $3.7 billion in in revenue for the year ended Sept. 30, 2016, down 9 percent from the previous year. It posted an operating loss of $262 million. Not counting some one-time charges, the company said it made $756 million.

Like much of the networking and collaboration industry, Avaya is looking toward software-defined networking, IoT, and cloud-based platforms that work on many different devices and the web.

In October, it announced an all-in-one collaboration platform called Avaya Equinox that can carry voice and video calls, text messaging, web collaboration and streaming of events. Equinox can run on mobile clients, PCs, and Avaya’s Vantage, a desktop device that’s like a phone but with a large touchscreen for running applications. The company also announced a single SDK (software development kit) for integrating Equinox into productivity applications.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established partners, emerging players and innovative start-ups, in front of over 460 technology leaders in Auckland.

Reseller News Innovation Awards 2018: meet the top performing partners
Champagne Reception kicks off Reseller News Innovation Awards 2018

Champagne Reception kicks off Reseller News Innovation Awards 2018

More than 460 channel leaders came together to toast the top performers of the New Zealand industry, during the opening Champagne Reception at the Reseller News Innovation Awards 2018 - in association with Techbuyer.

Champagne Reception kicks off Reseller News Innovation Awards 2018
Chasing innovation: how Kiwi partners can create a new customer agenda

Chasing innovation: how Kiwi partners can create a new customer agenda

This exclusive Reseller News Roundtable - in association with Rhipe and Microsoft - detailed a blueprint for customer success, outlining the new role of the modern-day partner and wider network in New Zealand.

Chasing innovation: how Kiwi partners can create a new customer agenda
Show Comments