Avaya Shares Down on Preliminary 3Q Results, Cost Cuts

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By Stephen Nakrosis

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Shares of cloud company Avaya Holdings Corp. were trading lower in Thursday’s after-hours session, following the release of preliminary third-quarter results and the disclosing of cost-cutting measures.

Avaya said the cost cuts are “expected to primarily impact the company’s overall selling, general and administrative expenses, as well as discretionary spending.”

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Avaya also said it is finalizing testing of its goodwill and intangible assets that is expected to result in significant non-cash impairment charges as of June 30, 2022. Further, the company said its prior financial guidance should no longer be relied upon.

Avaya is expecting third-quarter revenue of $575 million to $580 million, below previous guidance for $685 million to $700 million. Third-quarter adjusted EBITDA is expected to be between $50 million and $55 million, compared to previous guidance for $140 million to $150 million.

At 5:29 pm ET, the stock had fallen 21.1% to trade at $1.65. Volume at the time topped 1.6 million shares. The stock finished the day’s regular session with a 5% loss, closing at $2.09. Year to date, the stock is down almost 90%.

The stock hit a 52-week low of $1.82 on July 14.

Avaya plans to report financial results for the third quarter on August 9.

Also on Thursday, Avaya said it named Alan Masarek as its new president and chief executive, effective Aug. 1.

Write to Stephen Nakrosis at [email protected]

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Credit: www.marketwatch.com /

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