Avaya Revenue Growth Depends On Success of Cloud Products

The new cloud products are expected to drive Avaya's revenue growth in 2019. At the same time, revenues for the 2018 fiscal year are expected to be about the same as last year.

Avaya is forecasting stable activity for the remainder of the year as the company builds its cloud-based contact center software in anticipation of growth in 2019.

Avaya, which emerged from the Chapter 11 bankruptcy at the end of last year, released this week its first earnings report as a public company in more than 10 years. For the quarter ended December 31, Avaya's revenues were valued at $ 752 million. Excluding the effect of bankruptcy and other items, the Company recorded a net loss of $ 68 million for the first quarter of fiscal 2018.

Avaya's revenue is expected to be in the range of $ 3 billion to $ 3.1 billion for the full year, roughly the same level as the previous year. However, the company is "moving at full speed" and expects revenue growth in fiscal 2019, analysts said during a conference call, Avaya chief executive Jim Chirico said.


A priority for this fiscal year is to create a cloud company around Spoken Communications, a contact center provider as a service acquired by Avaya last month. Avaya plans to use Spoken as an option for customers who want to migrate slowly to the cloud. To set the tone, companies using local Avaya software can replace call center features one at a time with the Spoken Cloud version.