The newly formed Zang communications platform-as-a-service subsidiary would be easy to parcel out.
Avaya Considers Asset Sale The newly formed Zang communications platform-as-a-service subsidiary would be easy to parcel out. Last week was a big one for Avaya, with three significant announcements: It closed its second-quarter fiscal 2016 with revenue at $904 million, down $54 million year over year; it has retained advisors to evaluate expressions of interest and its capital structure; and it has made changes to executive compensation.
Avaya’s Q2 results, for the period ending March 31, indicate the company has positive cash flow and operating margins, but progressively declining revenues and GAAP net losses. Management has responded with a major transformation toward services and cost reductions. For example, research and development spending is declining (both in total dollars and as a percentage of revenue) to 7.7% of revenue in this past quarter. Adjusted earnings before interest, taxes, depreciation, and amortization were up slightly, at $205 million year over year. Avaya ended the quarter with $312 million in cash.