Avaya Announces Preliminary Fourth Fiscal Quarter 2016 Financial Results

SANTA CLARA, CA --(Marketwired - October 19, 2016) - Avaya announced today preliminary unaudited financial results for fourth fiscal quarter ended September 30, 2016. These results include: (i) revenue in the range of $945 million to $955 million, (ii) non-GAAP gross margin of approximately 61% to 62%, and (iii) adjusted EBITDA up year-over-year to the range of $270 million to $280 million. This results in adjusted EBITDA for the 2016 fiscal year in the range of $926 million to $936 million, up from $900 million for the 2015 fiscal year. Revenue results reflect year-over-year growth in Contact Center and Networking products, and Cloud & Managed Services and sequential growth in Unified Communications products. The Company's cash balance as of September 30, 2016 was approximately $336 million, up sequentially and year-over-year. The Company remains focused on its assessment of capital structure improvement opportunities. The reporting date for fourth fiscal quarter and full fiscal year ended September 30, 2016 results will be announced separately.

The Company noted that these financial results for the fourth fiscal quarter and year ended September 30, 2016 are preliminary and subject to the completion of its financial closing procedures and audit by its independent auditors. There can be no assurance that the Company's final results for the fourth fiscal quarter and year ended September 30, 2016 will not differ from these preliminary estimates as a result of quarter-end closing, review procedures, or review adjustments, and any such changes could be material.

Links to this preliminary financial results press release and Avaya's SEC filings are available on the investor page of Avaya's website (www.avaya.com/investors).

Q4 FY'16 Preliminary Financial Results - October 19, 2016

$M (Non-GAAP except Revenue and Cash)		4Q15 Actual (As Reported)		3Q16 Actual (As Reported)		4Q16 Guidance Range		4Q16 Preliminary Results
Revenue		$1,008		$882		$860 - $890		$945 - $955
Gross Margin %		62.0%		62.4%		N/A		~61% - 62%
Adj EBITDA $		$246		$223		N/A		$270 - $280
Adj EBITDA %		24.4%		25.3%		26% - 28%		28% - 29%
Cash Balance		$323		$269		N/A		~$336

Preliminary Highlights: