Avaya Sales Hit Six Year High

Telecoms vendor Avaya has announced its 4th Quarter results today showing a revenue increase to $1.429 Billion, the highest level in six years – a 4.8% increase on the same period last year.

The company statement also cautions in its forward looking statements that the merger agreement with Silver Lake, expected to close by the end of this month, may be under threat. Most observers however view this caution to be ‘belt and bracing’ its position with regard to strict US SEC rules and that the agreed merger will go through as planned.

The company’s gross margin increased to 47.4 percent for the fourth fiscal quarter of 2007 compared to 46.6 percent for the same period last year.

Revenues for fiscal 2007 were $5.279 billion compared to $5.148 billion last year. The weaker U.S. dollar favourably impacted international regions, and accounted for the revenue increase.

Amongst their 2007 highlights Avaya lists a new solution that provides users of Nokia “E Series” business devices with one number access and advanced enterprise telephony capabilities as they travel across private Wi-Fi and public cellular networks.

The solution – Avaya one-X Mobile Dual Mode – combines Avaya’s IP-based applications with Nokia E series business devices (Nokia E60, Nokia E61 and Nokia E70 models) to deliver the full benefits of fixed mobile convergence. Calls made to a worker’s deskphone can be received on a Nokia E series business device, ensuring mobile workers remain accessible to customers and colleagues wherever they go.

Avaya received Frost & Sullivan’s 2007 North American Market Leadership Award for Interactive Voice Response (IVR) based on its leading market share and strategy in IVR solutions. According to Frost & Sullivan’s latest research, Avaya leads the North American IVR market with a 22.7 percent share. The company’s success is led by sales of the Avaya Voice Portal, a software platform that uses Web Services to provide companies with a faster, easier way to deliver speech-enabled self-service across highly distributed enterprises.

Avaya also widened its lead in worldwide enterprise IP telephony revenues, according to Synergy Research Group’s 2Q 2007 Enterprise Voice Market Shares Report. With this report, Avaya marks another quarter of leadership in this market, as more businesses around the globe evolve their voice networks to IP telephony. Avaya is a global provider of business communications applications, systems and services.

The report shows Avaya as the #1 vendor in IP telephony revenues as defined by Synergy with 25.4 percent of the global market for the second quarter of 2007. In addition, the report shows that Avaya retained its leadership position in the worldwide overall enterprise telephony market in revenue, with nearly 19 percent of the market in the second quarter of 2007, more than 2 percentage points over its nearest competitor.