On the good side of the ledger Avaya revenue grew 2.9 per cent in the third quarter. But, on the down side revenue remains down by eight per cent on a year-over-year basis.
Avaya announced the financial results of our third fiscal quarter 2013, which saw the networking company revenues reach $1.15 billion, while operating income come in at $14 million, non-GAAP operating income was $171 million.
The good news for Avaya is that growth was seen in key product areas such as unified communications, contact center, IP Office and networking, as well as cloud-based services through Avaya Global Services.
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“Avaya’s third quarter results reflected growth in product revenue from unified communications, contact centers, IP Office and networking. Avaya Global Services revenue also benefited from growth in cloud services,” said Kevin Kennedy, president and CEO, Avaya. “We continue to execute our transformational initiatives which include expanding into the mid-market and advancing our business model.”
Gross margin was 54.5 per cent compared to 52.4 per cent for the prior quarter and 49.8 per cent for the third quarter of fiscal 2012. Adjusted EBITDA was $225 million or 19.5 per cent of revenue compared to $172 million or 15.4 per cent of revenue for the prior quarter and $225 million or 18 per cent of revenue for the third quarter of fiscal 2012.
Product revenue come in at $560 million, which is an increased close to six per cent compared to the prior quarter and decreased by 11.7 per cent compared to the third quarter of fiscal 2012.