Avaya Holdings Corp (fka AVYAQ)

[Warrens]

She's alive......

[JohnCM]

BUY $18.50

[JohnCM]

[JohnCM]

Nice move recently!!

[JohnCM]

[Honolulu Trader]

3rd Q 742M In Cash

Revenue 722M

Market Cap 1.4B

$9 Cash Per Share

PPS $16

21% Float Shorted

[JohnCM]

I have an alert for $15.00 breakout.

[realfast95]

Avaya Holdings $AVYA PT Raised to $17 at Morgan Stanley

[JohnCM]

AVYA just can't get going ...

[JohnCM]

Count me IN!!

[JohnCM]

[JohnCM]

[JohnCM]

I am not in yet.

[realfast95]

good call

CONFIRMED breakout above 14.87
Target: 17.48, 16.6% Stop: 14.26 Loss: 4.9%

https://www.stockconsultant.com/consultnow/basicplus.cgi?symbol=AVYA

[JohnCM]

Watch CNBC Mad Money CEO interview.

[realfast95]

Did they ever resolve that Government win, that was being contested by a competitor?

I didn't like the guidance. Coming out of covid-work from home, I'm not sure if Q2 will be very good. No more stock buyback (unless the stock tanks). They have a risk of customer deferrals if those customers are short on cash for capital spending.

It's do-or-die time now on the chart.

[JohnCM]

You want to be here.

[ClayTrader]

* * $AVYA Video Chart 05-12-2020 * *

Link to Video - click here to watch the technical chart video

[ClayTrader]

* * $AVYA Video Chart 03-13-2020 * *

Link to Video - click here to watch the technical chart video

[realfast95]

beat on revenue. In early November, we paid down $250 million in long-term debt and by the end of December, we repurchased nearly 11 million shares using approximately $132 million of the $500 million program approved by our Board.”

[realfast95]

$AVYA $12.97 Raised to Buy From Neutral by Goldman Sachs tgt $18
$RNG $192.89 Raised to Buy From Neutral by Goldman Sachs tgt $230

[realfast95]

Avaya Holdings $AVYA PT Lowered to $17 at Northland Capital Markets

[realfast95]

Avaya Holdings (AVYA) PT Lowered to $13 at Citi

[realfast95]

With that, let me provide a brief summary of the quarter. In Q4, we delivered $726 million of non-GAAP revenue, below our guidance, primarily driven by a delay of the social security administration that was previously discussed. Kieran will provide additional details on SSA.

https://seekingalpha.com/article/4308109-avaya-holdings-corp-avya-ceo-jim-chirico-q4-2019-results-earnings-call-transcript

Our revenue results were below our forecast, primarily as a result of the delays with the federal government procurement process with respect to the Social Security Administration transaction, as well as due to foreign currency exchange rates, the impact of which was about $4 million in the quarter.

https://seekingalpha.com/article/4308109-avaya-holdings-corp-avya-ceo-jim-chirico-q4-2019-results-earnings-call-transcript?page=4

As stated on our Q3 earnings call, our fourth quarter results were going to be heavily dependent upon the timing of the conclusion of the contracting process including related SOWs and purchase order of issuances related to the 10-year $400 million Social Security Administration opportunity.

One of the competing vendors lodged a protest against the award of the contract to us causing the delay. The delay pushed between $20 million to $25 million of product revenue out from Q4. We believe that given the Social Security Administration's need for this upgrade, coupled with the value proposition created by Avaya's products and services, this opportunity remains very much intact.

That said, we must allow for the US government procurement process to run its course. Forecasting when this process might conclude is challenging. So for now, we are not including any revenue stemming from this contract with Social Security Administration in our Q1 fiscal 2020 guidance figures.

[realfast95]

Transcript question and answer:


Nandan Amladi (Guggenheim)

And a follow-up for Kieran on the buyback. The average share count for the year seems to indicate that this will be a fairly slow. Just trying to gauge the cadence of the buyback over the next quarter or two?

Kieran McGrath (Avaya)

Honestly, I hate to disagree with you. But the average I just gave you says that we'd be taking out anywhere between 23% and 28% of our share count in the year. That doesn't seem slow to me.

https://seekingalpha.com/article/4308109-avaya-holdings-corp-avya-ceo-jim-chirico-q4-2019-results-earnings-call-transcript?page=12

Prepared remarks that prompted the question:

Finally, for the fiscal year, we expect our weighted average shares outstanding to be between 95 million and 100 million shares and to end the year with approximately 80 million to 85 million shares outstanding.

https://seekingalpha.com/article/4308109-avaya-holdings-corp-avya-ceo-jim-chirico-q4-2019-results-earnings-call-transcript?page=7

[realfast95]

Avaya's buy rating reiterated at Guggenheim. $20.00

[realfast95]

The telecommunications-equipment maker reported a loss of $34 million, or 31 cents a share, compared with a profit $268 million, or $2.41 a share, a year ago.

Analysts polled by FactSet were expecting a loss of six cents a share.

Revenue fell to $723 million from $735 million a year earlier. Analysts had expected $747 million of revenue in the quarter.
==================
comments:

They changed accounting methods

Mr. Chirico added, "Successfully concluding the strategic review process provided a decisive go forward path and, as a result, we announced three important initiatives to accelerate growth and deliver shareholder value. First, the partnership with RingCentral is a game changer for Avaya and is expected to fundamentally change the industry landscape. Second, we expect to begin to execute against our previously announced $500 million stock repurchase program shortly, and third, we have already completed the pay down of $250 million of debt that will result in significant annual interest expense savings and further enhance our balance sheet."

[realfast95]

Avaya Holdings Corp. (NYSE: AVYA), a global leader in solutions to enhance and simplify communications and collaboration, announced today that Avaya Inc. intends to offer in an underwritten public offering 1,750,000 shares of RingCentral, Inc. (NYSE: RNG) Class A common stock (the “Offering”). The Offering consists entirely of shares to be sold by Avaya Inc. RingCentral will not receive any of the proceeds from the shares sold in the Offering nor will RingCentral be subject to lock up restrictions. Avaya will be subject to customary lock up restrictions.

Goldman Sachs & Co. LLC and BofA Securities are acting as joint underwriters for the Offering.

[realfast95]

RingCentral, Inc. Announces Issuance of Class A Common Stock to Avaya in Connection with Strategic Partnership
($170.21 per share.)
Belmont, Calif. – November 12, 2019 – RingCentral, Inc. (NYSE: RNG) (“RingCentral”), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, announced today that it has issued 2,170,785 shares of its Class A common stock to Avaya Inc. (“Avaya”) pursuant to the terms of RingCentral and Avaya’s previously announced strategic partnership.

RingCentral has filed an automatically effective registration statement on Form S-3 with the Securities and Exchange Commission, which will cover the resale of all of the shares of Class A common stock issued to Avaya.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these shares of Class A common stock, nor shall there be any sale of these shares of Class A common stock in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

[realfast95]

RingCentral and Avaya Announce Closing of Strategic Partnership
Date : 10/31/2019 @ 9:14AM
Source : Business Wire
Stock : Avaya Holdings Corporation (AVYA)
Quote : 11.945 0.305 (2.62%) @ 11:03AM

RingCentral and Avaya Announce Closing of Strategic Partnership
Print
Alert
Avaya (NYSE:AVYA)
Intraday Stock Chart

Today : Thursday 31 October 2019
Click Here for more Avaya Charts.

Empowers Avaya’s global sales & partner network with RingCentral’s leading technology platform

RingCentral, Inc. (NYSE: RNG), and Avaya Holdings Corp (NYSE: AVYA) today announced the closing of their previously announced strategic partnership.

Avaya and RingCentral will introduce a new solution, Avaya Cloud Office by RingCentral (“Avaya Cloud Office”), which will be the exclusive public Unified Communications as a Service (“UCaaS”) solution marketed and sold by Avaya. Avaya Cloud Office combines RingCentral’s leading UCaaS platform with Avaya’s technology, services and migration capabilities to create a highly differentiated UCaaS offering. The companies expect to launch Avaya Cloud Office in the first quarter of calendar 2020.

“Our game-changing partnership with RingCentral and the introduction of Avaya Cloud Office have generated tremendous excitement with our partners and customers,” said Jim Chirico, Avaya President and CEO. “Avaya Cloud Office is a continuation of our stated strategy to be a cloud-first company, and we believe the addition of this UCaaS solution to our portfolio is a key differentiator that provides customers with a seamless journey to cloud communications. We, together with our global partner community, are excited to work with RingCentral in bringing this unique solution to market, building on the highly complementary strengths of our two industry-leading companies.”

“As a leader in cloud communications, we’re laser-focused on bringing the power of the cloud to more enterprise customers,” said Vlad Shmunis, RingCentral Founder, Chairman, and CEO. “With the growth of the mobile and distributed workforce, cloud communications solutions can deliver the capabilities enterprises need to effectively connect with customers, partners, and employees. This strategic partnership accelerates the transition of one of the world’s largest on-premise unified communications installed bases to the cloud. We’re excited for the long-term benefits this partnership will bring to customers and partners, as well as the growth opportunities that we expect it will drive for both our companies.”

“The strategic partnership is a winning combination for both Avaya and RingCentral, and it has the potential to disrupt the business communications industry as Avaya accelerates its transformation to the cloud. Careful consideration clearly went into designing the partnership framework to ensure maximum benefits for customers, partners, and both Avaya and RingCentral,” said Elka Popova, Vice President and Senior Fellow, Information and Communications Technologies, Frost & Sullivan.

RingCentral is contributing $500 million to its partnership with Avaya, including a $125 million investment of 3% redeemable preferred equity that is convertible at $16 per share and an advance of $375 million primarily in stock for future payments and certain licensing rights.

[realfast95]

$AVYA only has 111 million shares outstanding.
and a market cap of 1.4 to 1.5 billion.
A stock buyback plan of $500 million

[realfast95]

10/9/19 Avaya Holdings $AVYA PT Raised to $15 at Citi
10/8/19 Avaya $AVYA Price Target Raised to $16.00 at Morgan Stanley

[realfast95]

Morgan Stanley maintains Avaya Holdings $AVYA with a Equal Weight
and raises the price target from $14 to $16
10/7/2019 Monday

AVYA closed at $13.23 Friday 10/4/2019

[realfast95]

Avaya Announces Strategic Partnership with RingCentral to Accelerate Transformation to the Cloud
4:06 pm ET October 3, 2019 (BusinessWire) Print

Avaya Holdings Corp. (NYSE: AVYA), a global leader in solutions to enhance and simplify communications and collaboration, announced a strategic partnership with RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration and contact center solutions. Through this exclusive partnership, Avaya will introduce Avaya Cloud Office by RingCentral ("Avaya Cloud Office" or "ACO"), a new global unified communications as a service (UCaaS) solution.

Avaya Cloud Office expands the company's industry-leading portfolio to offer a full suite of UC, CC, UCaaS and CCaaS solutions to a global customer base, which includes more than 120,000 customers, over 100 million UC lines and 5 million CC users in over 180 countries.

"Avaya and RingCentral's joint investment and commitment to bringing Avaya Cloud Office to market creates an unprecedented opportunity to accelerate the transition to the cloud with attractive economics for our customers and partners," said Jim Chirico, President and CEO of Avaya. "This also gives us the opportunity to unlock value from a largely unmonetized base of our business as it brings compelling value to our customers and partners. We believe this highly complementary partnership is a game changer that expands the total addressable market for Avaya and creates meaningful value for both Avaya and RingCentral."

ACO combines RingCentral's leading UCaaS platform with Avaya technology, services and migration capabilities to create a highly differentiated UCaaS offering. Avaya expects to launch ACO in the first quarter of calendar 2020.

"This strategic partnership leverages the respective strengths of Avaya and RingCentral to provide a definitive differentiated solution," said Vlad Shmunis, Founder, Chairman and CEO of RingCentral. "We are excited to bring RingCentral's leading UCaaS platform to Avaya's installed base of over 100 million users and over 4,700 partners, providing long-term growth opportunities for both our companies."

Chirico added, "The strategic actions that we are executing as a result of our comprehensive review create new growth opportunities, return capital to our shareholders and de-lever our balance sheet. With a clear path forward, we will further invest in technology and innovation to continue bringing state-of-the-art solutions to our valued customers and partners."

Capital Allocation Priorities

Avaya's Board of Directors has authorized a share repurchase program under which it may purchase up to $500 million of Avaya's common stock. Avaya also announced plans to pay down $250 million of the principal debt under its Term Loan B.

Transaction Terms

RingCentral is contributing $500 million to its partnership with Avaya, including a $125 million investment of 3% redeemable preferred equity that is convertible at $16 per share, representing an approximate 6% position in Avaya on as-converted basis. RingCentral will also pay Avaya an advance of $375 million primarily in stock for future payments and certain licensing rights.

Timing and Approvals

The transaction is expected to close in the fourth quarter of calendar 2019, subject to customary closing conditions and regulatory approvals. The transaction does not require the approval of the shareholders of Avaya or RingCentral. The Boards of Directors of both companies have unanimously approved the transaction.

Advisors

J.P. Morgan is acting as exclusive financial advisor, and Kirkland & Ellis LLP is acting as legal advisor to Avaya.