Avaya (AVYA) Stock: Why It Was Trending

Avaya (AVYA) Stock: Why It Was Trending

  • Avaya (AVYA) stock was trending in the previous trading session. That is why.

Avaya (AVYA) stock was trending in the previous trading session as the price fell 56.94%. There were a few catalysts that affected the stock price.

Avaya announced that Alan Masarek has been named President and Chief Executive Officer and a member of the Avaya Board of Directors, effective August 1, 2022. Masarek will succeed Jim Chirico, who will be stepping down as President and Chief Executive Officer. of Avaya management, beginning in August. 1, 2022, and resigns as a member of Avaya’s Board of Directors. Chirico will remain employed at Avaya until August 16, 2022 and will work with Mr. Masarek to ensure a smooth transition for all stakeholders.

Avaya also recently announced certain preliminary financial results for the third quarter ended June 30, 2022 and expects to release full third quarter results on August 9, 2022.

Based on information currently available for the third quarter ended June 30, 2022, the company expects revenue to be between $575 million and $580 million, versus guidance of $685 million to $700 million, and that the adjusted EBITDA is between 50 and 55 million dollars. , against forecasts of 140 to 150 million dollars. And the company is also finalizing testing of its goodwill and intangible assets which are expected to result in significant non-cash impairment charges as of June 30, 2022.

Avaya also announced that it has launched cost-cutting measures that are expected to primarily impact the company’s overall selling, general and administrative expenses, as well as discretionary spending. And these actions are expected to generate between $225 million and $250 million in annual cost reductions beginning in the first quarter of fiscal 2023. The company expects to minimize any impact on customers with respect to sales and support, and remains committed to Avaya’s long-term commitment. range innovation and product development roadmaps.

The company’s previous financial orientations should no longer be relied upon. And management will provide additional information as part of the upcoming release of its full third quarter 2022 financial results.

The financial results for the three months ended June 30, 2022 included in this announcement are preliminary, have not been reviewed or audited, are based on Avaya’s estimates, and were prepared prior to the completion of the reporting process. company financials.

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