Avaya also reported its third quarter financial results before the bell on Monday. The Santa Clara, Calif.-based company delivered net income of $43 million, or 43 cents per share. Non-GAAP earnings were 75 cents a share on revenue of $732 million, up 2% from a year ago. Wall Street was expecting the company to report earnings of 70 cents per share on revenue of $729.8 million. Elsewhere on the balance sheet, Avaya said its software and services products accounted for 88% of revenue, with recurring revenue contributing 64%. The company also signed 100 deals with a total contract value (TCV) of over $1 million, and three deals with over $10 million TCV. For the current quarter, Avaya expects revenue in the range of $720 million to $750 million. Analysts expect Avaya to report fourth quarter revenue of $747.9 million. Shares of Avaya were up down 5% in early trading. “Our third quarter represents the fifth consecutive quarter of year over year revenue growth and speaks volumes to the significant progress we’ve made on our transformational strategy,” said Avaya CEO Jim Chirico. ““Annual recurring revenue, a key indicator of our progress, is outperforming our expectations, up over 275% percent from a year ago to $425 million, 64% of which is from deals greater than $1 million, consistent with our strong traction in large enterprises. Given this performance, we are again raising our ARR guidance and now expect to cross the $1 billion mark by the end of calendar 2022, about a year ahead of schedule.” Avaya – which competes in the cloud communications space against Twilio, Cisco, Genesis and 8x8 – restructured under Chapter 11 bankruptcy protection in January 2017, and later sold off its networking business to monetize some of its assets. Avaya was spun off of Lucent Technologies in 2000 and became a private company in 2007 following an $8.2 billion deal with Silver Lake and TPG Capital. Avaya expanded into networking in 2009 after it acquired Nortel Enterprise Solutions.
