Avaya posts $633m loss for third quarter

Avaya reported a net loss of $633m for its third quarter to the end of June, after it placed an impairment charge of $657m to write down goodwill at its Products & Solutions division due to reduced prospects. 

The company also withdrew its long-term outlook, saying this will be updated after it completes its evaluation of takeover offers.

Updating the market on the strategic alternatives process Avaya is conducting with JP Morgan, President and CEO Jim Chirico said: "We are in advanced discussions with multiple parties on a range of transactions to maximise shareholder value."

GAAP revenue for the quarter was $717m, $25m higher than the third quarter in 2018. The GAAP gross margin was 54.4%, compared to 50.9% last year. 

A GAAP operating loss of $613m was primarily down to the aforementioned impairment charge. The firm made an operating loss of $49m in the third quarter of 2018.

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