Call Now Menu
Contact Us Now

Latest News about Avaya

Avaya Partners With RingCentral to Offer New Cloud-Based Options

In case you missed the news, Avaya recently announced that it has partnered with RingCentral to deliver new cloud-based services to Avaya customers. Soon, you’ll be able to access a suite of tools called Avaya Cloud Office (ACO), which will offer a new, global Unified Communications as a Service (UCaaS) solution to Avaya’s 120,000 customers across the globe.
Why is this news important for Avaya customers?
In short, it will make available new, flexible, cloud-based capabilities to all of our customers, provided by RingCentral —
one of the worldwide leaders in global enterprise cloud communications.
Starting in the first quarter of 2020, Avaya customers can unlock the power of ACO for their business. Some highlights of the announcement (which you can read in full here):

RingCentral is investing $500 million into Avaya – funding which can be used to strengthen Avaya’s market position while alleviating some debt obligations.

With the infusion, Avaya can now focus resources on its own Contact Center and Customer Experience solutions.

There will be no changes to any of your existing agreements with Avaya, nor with any of the account team members with whom you have become accustomed to working.

With CTI’s growing portfolio of Managed Services offerings, along with longstanding partnerships with Avaya and RingCentral, we are well-positioned to work with you to evaluate the best options for your Avaya infrastructure, now and into the future.

If you have any additional questions about last week’s announcement or about what Avaya Cloud Office can do for your business, don’t hesitate to give us a call at 888-477-4284 or 
Contact Us here.

Avaya Posts Strong Q3 2019 Financial Results

Avaya has announced financial results for its third fiscal quarter of 2019. The company’s transformation continues, and it is demonstrating steady progress across the business in delivering innovation to help customers achieve exceptional experiences and outcomes.
Here are some highlights of the continued strong operational performance:

For the quarter, non-GAAP revenue was $720 million, Adjusted EBITDA was $167 million, and the company generated $52 million in cash flow from operations.

Revenue from software and services increased to 83.6%, and recurring revenue was 59.3%.

Avaya added approximately 1,400 new customers, winning new business from competitors and delivering compelling value to customers. This momentum is continuing into the current quarter, including two major wins signed with the U.S. federal government.

Public cloud seats grew over 170% year-over-year and 24% sequentially, as total cloud seats came in at 3.6 million for the quarter.

Investments in customer-focused innovation continue to be recognized by third-party industry analysts. This quarter, IDC recognized Avaya’s leadership in their 2019 Worldwide Unified Communications and Collaboration Marketscape. The report states that “Avaya remains a leading UC&C vendor with a global reach and a broad product portfolio targeted at a range of customers. It has 7,500 partners worldwide and strengths in the areas of telephony and contact center, along with key vertical markets such as education, financial services, healthcare, hospitality, and government.” The report went on to say that “based on its current and historical market share position in telephony and UC, Avaya has a formidable installed base of approximately 139 million lines — one of the largest, if not the largest, in the industry.”

Avaya Successfully Completes Financial Restructuring and Emerges from Chapter 11

December 15, 2017 — Avaya Holdings Corp. (“Avaya” or the “Company”) announced that it has successfully completed its debt restructuring and emerged from chapter 11.

“This is the beginning of an important new chapter for Avaya,” said Jim Chirico, Avaya’s president and CEO. “In less than a year since the commencement of our chapter 11 restructuring, Avaya has emerged as a publicly traded company with a significantly strengthened balance sheet. Overall, we reduced our prior debt load by approximately $3 billion, and we exit today with more than $300 million in cash on our balance sheet.  The reduction of our debt and certain other long-term obligations will also improve annual cash flow by approximately $300 million compared to fiscal 2016.”

“We have the flexibility we need to invest in the large and growing contact center and unified communications markets as we complete our transformation to a software, services and cloud solutions provider,” Chirico added. “With a new Board and leadership team firmly in place, Avaya is now well-positioned to execute on its growth plan and deliver the returns and value expected by our stakeholders.”

Avaya is taking the steps necessary to list on the New York Stock Exchange.  The company expects to have approximately 110 million shares outstanding upon emergence.

An Avaya Update Message from CTI President Kenny Heitner — April, 2017

On April 14th, Avaya filed its Plan of Reorganization, step two of the process to address its debt in order to strengthen its business and increase financial flexibility. The Plan addresses debt restructuring, including details on a debt-for-equity exchange that would lead to new ownership and reduce Avaya’s debt by $4 billion to $2 billion.

There have recently been multiple articles on Avaya’s progress in moving through the reorganization process and reducing its debt.  This is good news – and illustrates how Avaya is keeping on track with its roadmap for the bankruptcy process.

These articles include very positive statements supporting Avaya’s operational strength: “Avaya bankruptcy activities are ‘behind the scenes” and  “There should be no impact to Avaya customers or channel partners other than providing some clarity that things are progressing on schedule.”

Avaya’s proposed plan includes the following terms:

  • Avaya’s pre-filing debt will be reduced by more than $4 billion;
  • Avaya’s restructuring will be achieved through a debt-for-equity exchange, in which certain secured creditors would acquire 100% of reorganized Avaya’s equity;
  • Avaya’s general unsecured creditors will share pro rata in a cash pool;
  • Avaya will continue to honor and maintain its qualified U.S. pension plans, which make up the vast majority of Avaya’s pension obligations, following its emergence from bankruptcy; and
  • Avaya will continue to honor and assume its two collective bargaining agreements and all related agreements.

In an article from Network World (link below), the author concludes; “Customers and resellers should be aware that this won’t impact them at all, this is a plan to work out the debt and ownership structure of the company. As it has done since the filing date of January 19th, business operations will proceed normally.”

Network World article on Avaya’s Post-Bankruptcy Plan

Please feel free to contact me directly for further discussions.

Kenny Heitner

FAQs from Avaya

What did Avaya announce?

We announced that we have taken action to restructure our balance sheet and better position the Company for the future. To facilitate this restructuring, Avaya Inc. (together with certain of its domestic subsidiaries, collectively, the “Company”) filed voluntary petitions under chapter 11 of the U.S. Bankruptcy Code. Generally speaking, the Company’s foreign affiliates are not included in the filing and will continue normal operations.

We have conducted an extensive review of alternatives to address our capital structure. With the help of our advisors, we determined a restructuring is the best path forward at this time.

We are confident that restructuring our balance sheet will help us become stronger and more nimble, with the flexibility to make necessary investments in innovation and our operations.

Is Avaya going out of business?

No. We are keenly focused on minimizing disruption to our customers, partners, and employees and do not expect to experience any material disruption as a result of the filing. Our corporate offices, distribution and support centers remain open on normal schedules and will continue to operate as usual.

As a result of the terms of Avaya’s debt obligations and the upcoming debt maturities, we need to recapitalize the Company and believe the restructuring process is the best path forward at this time. Our businesses are healthy and performing well, and we are executing at a high level. Our Q4 results show y/y growth in contact center products and networking and sequential growth in unified communications, and were above our expectations, including adjusted EBITDA performance that was an Avaya record. We have the first or second market share positions in most of the markets we serve, and continue to maintain a best in class Net Promoter Score.

We are using the controlled process of chapter 11 to implement a debt restructuring that will grant us the financial freedom to invest more resources in our future.

Will this have any impact on my product warranty?

No. The Company has filed a number of “first-day” motions with the Court to promote a smooth transition into chapter 11 with minimal business disruption. Among other things, the “first-day” motions request authority to continue certain customer and partner programs in the ordinary course of business.

Will my products continue to be serviced?

Yes. We are keenly focused on minimizing disruption to our customers and do not expect to experience any material disruption as a result of the filing.

Why should I invest in a new contract with you?

Avaya remains one of the leading providers of Contact Center and Unified Communications solutions, and that doesn’t change with our filing. In fact, the filing should enable us to reduce our debt and interest expense so we can invest more in innovation and customer service. We deliver world-class product innovation and support services, which have resulted in a Net Promoter Score that is more than 20 points higher than our key competitors. Our businesses are healthy and our operations are strong. In fact, our operating profitability has improved sequentially in each of the past six years. Our Q4 results show y/y growth in contact center products and networking and sequential growth in unified communications, and were above our expectations, including adjusted EBITDA performance that was an Avaya record.

We provide mission critical communications infrastructure to many of the world’s largest companies, hospitals, schools and government institutions, including 90 percent of the Fortune 100. The filing does not alter the commitments we’ve made to our customers, whether it’s product and roadmaps, service engagements, cloud services or maintenance contracts. The Company has filed a number of “first-day” motions with the Court to facilitate a smooth transition and minimize business disruption. Among other things, the “first-day” motions request authorization to continue certain customer and partner programs in the ordinary course of business.

We do not anticipate any scenario in which Avaya would cease its operations or discontinue its products and world-class customer support.

Will in-process quotes and deals be honored?

The Company intends to honor and process quotes and orders in the ordinary course of business, subject to Court approval.

Will you continue to guarantee Service Level Agreements (SLAs)?

We are keenly focused on minimizing disruption to our customers and do not expect to experience any material disruptions as a result of the filing. We are fully committed to providing our customers and partners with the same innovative products and industry-leading service you have come to expect from us.

Will Avaya continue to honor existing multi-year agreements and sell new ones?

Yes. We are keenly focused on minimizing disruption to our customers and do not expect to experience any material disruptions as a result of the filing. We are fully committed to providing our customers and partners with the same innovative products and industry leading service you have come to expect from us.

Do you have a plan for providing updates?

Yes, we are committed to providing regular updates to customers as we move through this process. This will include our existing newsletters and other communication vehicles, customer events that we hold around the world, regular updates on, and a process for collecting and answering customer questions through our sales team and partners. Our account teams and partners will also be equipped with updates to share with customers.

Where can I get additional information?

For more information about our filing, including access to Court documents, please visit:


A Message from CTI President Kenny Heitner — January 2017

At CTI, we are always anticipating and preparing ourselves for the inevitable changes and evolutions in the communications technology marketplace. Making sure our customers are informed and comfortable is a top priority. With the recent announcement regarding Avaya filing for Chapter 11 protection, we want to assure you that we are committed to providing you with the trusted guidance and superior technical capabilities to ensure the best business outcomes.

Chapter 11 protection provides an opportunity for a company to restructure its debt and improve its financial stability while continuing to operate its businesses largely in the same manner as it did before the filing. Improving Avaya’s balance sheet will help position the Company for long-term success. They are confident that that will emerge from this process as a stronger, more competitive company with the financial flexibility to invest in innovation and growth to expand their market-leading positions, and create solutions and services that will meet both partners’ and customers’ needs today and well into the future.

We have confidence in Avaya’s technology and the value it brings to your business. And we are here to support you through whatever changes may come as a result of Avaya’s efforts to rework its capital structure. As a systems integrator with a wide breadth of competencies across solution areas, CTI is highly capable of helping you find success regardless of the path forward you choose to take.

While Avaya’s business is running well and its operating profitability is improving each year, its capital structure is outdated and supports a business model from which it has since evolved. Restructuring its debt will allow Avaya to maintain a healthy and manageable debt level, increasing its financial flexibility so that it can continue to innovate and evolve as an industry leader. Many companies have filed for Chapter 11 protection and continue to operate successfully today, including General Motors, Marvel Studios and United Airlines.

During this restructuring, Avaya will continue to operate, sell, and support customers, with a focus on the future and dedication to innovation. CTI will continue to sell and support Avaya products. Given the overall intrinsic value of the technology and the significant installed base of customers, we strongly believe that the core solutions Avaya is offering today will remain viable and supported.

To help keep you informed, I have included several links at the bottom of the page that will give you further information and clarification about Avaya’s restructuring plans. I will continue to update this page with new information as we receive it.

But as always, if you have any questions or concerns, do not hesitate to contact me personally and I will be happy to address those issues.

Kenny Heitner
President & CEO of CTI   914-935-6060