(1) Refer to Supplemental Financial Information accompanying this press release for a reconciliation of GAAP to non-GAAP numbers and for reconciliation of adjusted EBITDA for the fourth quarter of 2012 see our Form 8-K filed with the SEC on December 11,2012 at www.sec.gov.
Conference Call and Webcast
Avaya will host a conference call to discuss these results at 5:00 p.m. EST on Tuesday, February 5, 2013. To access the conference call, dial 800-882-9327 in the U.S. or Canada and 706-645-9730 for international callers and provide the operator the conference passcode number of 91163824. To ensure you are on the call from the start, we suggest you access the call 10-15 minutes prior to the start of the call.
WEBCAST Information: Avaya will webcast this conference call live. To ensure that you are on the webcast, we suggest that you access our website (www.avaya.com/investors) 10-15 minutes prior to the start. Supplementary materials accompanying the conference call are available at the same location. Following the live webcast, a replay will be available on our archives at the same web address.
About Avaya
Avaya is a global provider of business collaboration and communications solutions, providing unified communications, contact centers, networking and related services to companies of all sizes around the world. For more information please visit www.avaya.com.
Certain statements contained in this press release are forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should" or "will" or other similar terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a list and description of such risks and uncertainties, please refer to Avaya's filings with the SEC that are available at www.sec.gov. Avaya disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Avaya Inc. Consolidated Statements of Operations (Unaudited; in millions) For the three months ended December 31, ------------------------ 2012 2011 ----------- -----------REVENUE Products $ 631 $ 749 Services 609 638 ----------- ----------- 1,240 1,387 ----------- -----------COSTS Products: Costs (exclusive of amortization of intangibles) 261 311 Amortization of technology intangible assets 22 50 Services 291 322 ----------- ----------- 574 683 ----------- -----------GROSS PROFIT 666 704 ----------- -----------OPERATING EXPENSES Selling, general and administrative 384 433 Research and development 118 111 Amortization of intangible assets 57 56 Restructuring and impairment charges, net 84 21 Acquisition-related costs - 1 ----------- ----------- 643 622 ----------- -----------OPERATING INCOME 23 82Interest expense (108) (109)Loss on extinguishment of debt (3) -Other expense, net (6) (1) ----------- -----------LOSS BEFORE INCOME TAXES (94) (28)Benefit from income taxes (9) (2) ----------- -----------NET LOSS $ (85) $ (26) =========== =========== Avaya Inc. Consolidated Balance Sheets (Unaudited; in millions) December 31, September 30, 2012 2012 ------------- -------------ASSETSCurrent assets: Cash and cash equivalents $ 285 $ 337 Accounts receivable, net 763 782 Inventory 258 255 Deferred income taxes, net 16 18 Other current assets 260 252 ------------- -------------TOTAL CURRENT ASSETS 1,582 1,644 ------------- ------------- Property, plant and equipment, net 360 364 Deferred income taxes, net 45 43 Intangible assets, net 1,697 1,775 Goodwill 4,188 4,188 Other assets 193 180 ------------- -------------TOTAL ASSETS $ 8,065 $ 8,194 ============= =============LIABILITIESCurrent liabilities: Debt maturing within one year $ 34 $ 37 Accounts payable 446 438 Payroll and benefit obligations 236 262 Deferred revenue 617 616 Business restructuring reserve, current portion 122 84 Other current liabilities 240 302 ------------- -------------TOTAL CURRENT LIABILITIES 1,695 1,739 ------------- ------------- Long-term debt 6,075 6,084 Pension obligations 1,754 1,763 Other postretirement obligations 351 360 Deferred income taxes, net 207 204 Business restructuring reserve, non-current portion 78 51 Other liabilities 438 429 ------------- -------------TOTAL NON-CURRENT LIABILITIES 8,903 8,891 ------------- -------------Commitments and contingenciesDEFICIENCY Common stock - - Additional paid-in capital 2,927 2,926 Accumulated deficit (4,321) (4,236) Accumulated other comprehensive loss (1,139) (1,126) ------------- -------------TOTAL DEFICIENCY (2,533) (2,436) ------------- -------------TOTAL LIABILITIES AND DEFICIENCY $ 8,065 $ 8,194 ============= ============= Avaya Inc. Condensed Statements of Cash Flows (Unaudited; in millions) For the three months ended December 31, ------------------------ 2012 2011 ----------- -----------Net cash (used for) provided by: Net loss $ (85) $ (26) Adjustments to net loss 101 157 Changes in operating assets and liabilities (10) (141) ----------- ----------- Operating activities 6 (10) Investing activities (31) (36) Financing activities (26) (10) Effect of exchange rate changes on cash and cash equivalents (1) 1 ----------- -----------Net decrease in cash and cash equivalents (52) (55)Cash and cash equivalents at beginning of year 337 400 ----------- -----------Cash and cash equivalents at end of year $ 285 $ 345 =========== =========== Avaya Inc. Supplemental Revenue Schedules (Unaudited; in millions) For the Three Months For the Three Months Ended Ended December 31,--------------------- -------------------------------------- Mar. June September Revenues Mix Change 31, 30, 30, ------------- --------- ------------- 2012 2012 2012 2012 2011 2012 2011 Amount Pct.------ ------ ------- ------ ------ ---- ---- ------ ----- Revenue by Segment --------------- Global Communications$ 574 $ 561 $ 588 Solutions $ 573 $ 667 46% 48% $ (94) -14.1% Purchase accounting (1) (1) - adjustments - - 0% 0% - - 64 74 64 Networking 58 82 5% 6% (24) -29.3%------ ------ ------- ------ ------ ---- ---- ------ ----- Total ECS product 637 634 652 revenue 631 749 51% 54% (118) -15.8% 620 616 625 AGS 609 638 49% 46% (29) -4.5%------ ------ ------- ------ ------ ---- ---- ------ -----$1,257 $1,250 $ 1,277 Total revenue $1,240 $1,387 100% 100% $ (147) -10.6%====== ====== ======= ====== ====== ==== ==== ====== ===== Revenue by Geography ---------------$ 678 $ 666 $ 694 U.S. $ 670 $ 748 54% 54% $ (78) -10.4%------ ------ ------- ------ ------ ---- ---- ------ ----- International: 327 330 327 EMEA 331 365 27% 26% (34) -9.3% APAC - Asia 117 128 126 Pacific 123 126 10% 9% (3) -2.4% Americas International - Canada and 135 126 130 Latin America 116 148 9% 11% (32) -21.6%------ ------ ------- ------ ------ ---- ---- ------ ----- Total 579 584 583 International 570 639 46% 46% (69) -10.8%------ ------ ------- ------ ------ ---- ---- ------ -----$1,257 $1,250 $ 1,277 Total Revenue $1,240 $1,387 100% 100% $ (147) -10.6%====== ====== ======= ====== ====== ==== ==== ====== =====
