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.

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.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?