Recovering Avaya has reported Q2 financial results for the quarter ended March 31, 2020 and was pushed into a big loss by goodwill impairment. It is continuing to move to software, SaaS, and Cloud as its revenue from Software and Services reached a record of 88% of $682m in revenue. Avaya Cloud Office launched on March 31st, at the end of the quarter.
Recurring revenue was 64% of revenue - up 5 points sequentially, it says, but overall revenues of $682m meant a GAAP Operating loss of $597m; Non-GAAP Operating income was $125m. The net loss was $672 which includes a non-cash goodwill impairment charge of $624m.
"Avaya delivered a strong second quarter on multiple fronts and I couldn’t be prouder of how the company has executed in the face of the global COVID-19 crisis,” says Jim Chirico, President and CEO, of Avaya. “The last several weeks have driven home the importance of communication and collaboration technology for all of us and especially the need for modernization of existing investments and infrastructure. Demand for video collaboration, with our Spaces solution, contact center upgrades to include remote work from anywhere capabilities, and the need for flexible consumption models like our cloud and subscription offers has accelerated, and no other company operates with the scale or reach that Avaya does. Our results underscore the mission critical nature of the solutions we provide, the value we deliver, and the partnership we have with our global base of customers.”
“The company has improved on all key strategic metrics as we continue the deliberate move to a SaaS and Cloud model. Recurring revenue was 64%, up five points sequentially and year over year, our CAPS revenue increased to 23% from 18% in the prior quarter, and software and services as a percent of revenue was 88% - all new highs for the company. The continued mix shift of our revenue reflects that the vision and strategy we laid out is taking hold and that our transformation to a software, SaaS, and Cloud focused company is irreversible.”
