Avaya Holdings Corp (fka AVYAQ)

[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.