Avaya — Q4 2012 Earnings Presentation
11 slides from Avaya's earnings presentation, Dec 11, 2012
Slide 1: Avaya Q4 2012 Earnings Call
The Power of We™ Avaya Q4 2012 Earnings Call December 11, 2012
Slide 2: Forward-Looking Statements
Forward - Looking Statements Certain statements contained in this presentation are forward-looking statements, including statements regarding our future financial and operating performance, as well as statements regarding our future growth plans and drivers. These statements may be identified by the
Slide 3: Fiscal Q4 2012 Financial Highlights
Fiscal Q4 2012 Financial Highlights (Amounts other than Revenue and Cash Balance are non-GAAP unless specified) Revenue of $1.277 billion grew 2% over the prior quarter – Revenue increase comprised of a 3% increase in product revenue and slightly higher service revenue Gross margin of 54.7% cont
Slide 4: FY 2012 Financial Summary
FY 2012 Financial Summary (Amounts in millions) FY 2012 FY 2011 Revenue $5,171 $5,547 Gross Margin1 54.0% 52.7% Operating Margin1 13.9% 13.1% Adjusted EBITDA1 $971 $971 Cash from Operations $44 ($300) Cash and Cash Equivalents $337 $400 1. Non-GAAP - refer to supplemental financial Information accom
Slide 5: Income Statement
Income Statement (Amounts non-GAAP (other than Revenue) and dollars in millions) FQ4 2012 FQ3 2012 FQ4 2011 Revenue $1,277 $1,250 $1,419 Gross Margin 54.7% 53.9% 55.0% Operating Margin 16.1% 12.7% 16.9% Adjusted EBITDA $267 $225 $293 © 2012 Avaya – Proprietary. Use pursuant to your signed agreement
Slide 6: Revenue by Geographic Region
Revenue by Geographic Region (Amounts GAAP and dollars in millions) FQ4 2012 FQ3 2012 FQ4 2011 Revenue U.S. $694 $666 $767 EMEA $327 $330 $382 APAC $126 $128 $133 CALA $130 $126 $137 Total $1,277 $1,250 $1,419 % of Total Revenue U.S. 54.3% 53.3% 54.0% EMEA 25.6% 26.4% 26.9% APAC 9.9% 10.2% 9.4% CALA
Slide 7: Fiscal 2012 Balance Sheet and Operating Metrics
Fiscal 2012 Balance Sheet and Operating Metrics (Dollars in millions) FY 2012 FY 2011 Total Cash and Cash Equivalents $337 $400 Cash from Operations $44 ($300) Capital Expenditures and $127 $125 Capitalized Software Days Sales Outstanding 55 48 Inventory Turns 10 10 Head Count (as of Sept 30 2012) 1
Slide 8: Financial Metrics
Financial Metrics Total Revenue ($M) Gross Margin(1) (%) 6,000 5,547 60% 52.7% 54.0% 5,060 5,171 49.9% 5,000 50% 4,000 40% 3,000 30% 2,000 20% 1,000 10% 0 0% FY10 FY11 FY12 FY10 FY11 FY12 Adjusted EBITDA(1) ($M) & Margin Operating Income(1) ($M) & Margin 1,200 20% 800 726 721 16% 971 971 700 14% 1,0
Slide 9: Avaya Productivity Trend
Avaya Productivity Trend Revenue and Adjusted EBITDA per Headcount ($K) 350 57 60 52 300 50 42 250 40 200 30 150 298 305 267 20 100 50 10 0 0 FY10 FY11 FY12 Revenue per Headcount Adj. EBITDA per Headcount Headcount data as of fiscal year end © 2012 Avaya – Proprietary. Use pursuant to your signed ag
Slide 10: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Avaya Inc. S upplemental S chedule of Non-GAAP Adjusted EBITDA (Unaudited; in millions) For the three months ended For the twelve months ended S eptember 30, S eptember 30, 2012 2011 2012 2011 Net income (loss) $ 10 $ (99) $ (344) $ (863) Interest expense 107 109 431 4
Slide 11: Non-GAAP Reconciliation
Non-GAAP Reconciliation Avaya Inc. S upplemental S chedules of Non-GAAP Reconciliations (Unaudited; in millions) For the Three Months Ended For the Twelve Months Ended S ept. 30, Dec. 31 Mar. 31, June 30 S ept. 30, S ept. 30, S ept. 30, S ept. 30, 2011 2011 2012 2012 2012 2010 2011 2012 Reconciliati