Avaya has hinted at a number of product lines being scrapped as it looks to streamline its portfolio.
The vendor has published a “business update” slide deck on its website to give investors an insight into its future plans.
One slide, titled “Streamlined Product Portfolio” appears to detail the areas in which Avaya plans to focus and those in which it will “exit”. The actual product names, however, are not visible (see below).
The table also features a smaller set of products in which Avaya will “strategically invest”.
UC Today has contacted Avaya for comment and will update this story if and when new information is available.
Avaya’s share price dropped by one third when the New York Stock Exchanged opened today.
Troubled Waters
Avaya has endured a tricky few months, which have seen it change CEO and announce redundancies as its journey to the cloud stutters.
The vendor has yet to publish its full Q3 results, due in August, while its Q4 numbers would typically be due around this time of the year.
It did, however, reveal that Q3 sales were 17 percent below the guidance it gave the market. It also revealed that it expects Q4 revenue to be between $460m and $480m. This is compared to $760m in the same quarter last year.
Looking longer term, Avaya expects annual revenue to decline in full years 22, 23 and 24, before returning to growth in 25. Sales in FY27 are forecast at $2.5bn – still lower than in 2019, 2020 and 2021.
The revenue declines, however, will be offset by a cost-cutting programme that will run over the next few years. This will eventually end up at run rate savings of $524m by Q1 2024.
Hope ahead
Despite its troubles, Avaya is optimistic about the future – largely because it retains a huge global customer base. It claims this includes 44 of the top 50 banks, all of the top 10 airlines, all 7 of the top US health insurance providers and 12 of the top 13 hotels resorts.
The market has also responded relatively well to the appointment of new CEO Alan Maserek. The new boss outlined his vision for Avaya during an in-depth interview with UC Today. Maserek has market experiencing, having previously been at the helm with Vonage.
You can view the interview, recorded in August, here.
Another change at the top of Avaya saw Chief Financial Officer Kieran McGrath depart last month.
However, Avaya claims that innovation has continued despite its financial worries. At Gitex, it revealed plans to help connect its customers to the metaverse. It also launched a channel-focused UCaaS model in partnership with Wavenet, targeting the UK market.
Anthony Black, Director of Wholesale at Wavenet, said at the time.
“We have spent the last 12-15 months developing a UC Avaya proposition. It’s like an IP Office in the cloud which is suitable for our customers.
“As an (Avaya) partner, we know what we want because we need it ourselves. We are going to put a full wrap on this proposition and get it out into the Avaya partner base.
“We will provide Avaya partners with the platform to provision, support, de-provision, amend and get the CDRs from Wavenet to bill those customers themselves.”
from UC Today https://ift.tt/0pxU3E2
0 Comments