Avaya — 2006 Piper Jaffray Hardware & Communications Conference
17 slides from Avaya's conference presentation, May 11, 2006
Slide 1: 2006 Piper Jaffray Hardware & Communications Conference
2006 Piper Jaffray Hardware & Communications Conference Garry K. McGuire CFO and SVP Corporate Development May 11, 2006 © 2005 Avaya Inc. All rights reserved. -1-
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations or forecasts of future events. Actual future results may
Slide 3: Avaya Road to Intelligent Communications
Avaya Road to Intelligent Communications © 2005 Avaya Inc. All rights reserved. -3-3
Slide 4: Expanding Solutions
Expanding Solutions March 2006 Product Launches at VoiceCon Avaya MultiVantage® Enterprise Avaya one-X™ Quick Edition • Communication Manager 3.1 Avaya one-X™ Mobile Edition • Converged Communications Server 3.1 • Modular Messaging 3.0 Avaya one-X™ Desktop Edition • Call Center 3.1 May 2006 Product
Slide 5: Avaya MultiVantage Express
Avaya MultiVantage Express Complete Solution for Midsize Business • Suite of ready-to-use integrated software applications –– Full Full Avaya Avaya Communication Communication Manager Manager feature feature set set –– Messaging Messaging –– Auto Auto Attendant Attendant –– Mobility Mobility –– Conf
Slide 6: Avaya On Demand
Avaya On Demand • Applications hosted in an Avaya-operated data center – Modular IP Telephony, Contact Center Center and and Messaging Messaging •• Pay-as-you-go Pay-as-you-go perper user user per per month month •• Scalable Scalable from from 100 100 employees employees toto hundreds hundreds of of
Slide 7: Intelligent Communications for the Smallest Office
Intelligent Communications for the Smallest Office Best in Show VoiceCon 2006 • SIP-based peer-to-peer technology (Nimcat acquisition) • Designed for small businesses and enterprise branch offices of less than 20 people Nimcat Networks acquired by Avaya in September 2005 • Simple, cost effective, No
Slide 8: Expanding Partnerships and Alliances
Expanding Partnerships and Alliances • DeveloperConnection Partners to enhance solutions Over Over 2100 2100 member member companies companies with with 30% 30% outside outside US US • Increasing number of strategic alliances © 2005 Avaya Inc. All rights reserved. -8-8
Slide 9: IP Telephony Market Leadership
IP Telephony Market Leadership • Won January 2006 "Best in Test" in Miercom IP Telephony Competition for high-end IP PBX solutions by Business Communications Review – Miercom's highest score ever recorded – Best in Test two years in a row – Cited for leadership in mobility and excellence in security
Slide 10: IP Telephony Market Leadership
IP Telephony Market Leadership Challengers Leaders The Avaya Gartner Magic Cisco Systems NEC Nortel Networks Quadrant Ability to Inter-Tel Siemens North American Execute Toshiba Mitel Networks Corporate ShoreTel Alcatel Telephony 3Com Vertical Communications Niche Players Visionaries Completeness of
Slide 11: Driving Market Share Leadership in 2005
Driving Market Share Leadership in 2005 • Global Market Leader in Enterprise IP Telephony Port Shipments –– At At 20% 20% share share for for CY CY Q4 Q4 2005 2005 according according to to Synergy Synergy Research Research –– Leading Leading position position for for the the ninth ninth consecutive
Slide 12: Global Opportunity
Global Opportunity IP Growth & Market Penetration North America EMEA Telephony Telephony Base Base 182M 109M 113M 170M 49% APAC Telephony 13% Base 37% 129M 2004 2008 112M Growth CAGR = 40% 7% 2004 2008 CALA Telephony Growth CAGR = 52% Base 39M 32M 5% 27% 3% 12% 2004 2008 Growth CAGR = 54% 2004 2008
Slide 13: Larger, Broader, More Diverse Global Presence
Larger, Broader, More Diverse Global Presence FY2004 Americas FY2005 non-U.S. APAC Americas 4.8% 5.6% non-U.S. U.S. 5.3% APAC 59.3% 6.9% EMEA 13.2% U.S. EMEA 75.9% 29.0% Total Revenue of $4,069M Total Revenue of $4,902M Avaya International Revenue Increases from 24% to 41% © 2005 Avaya Inc. All righ
Slide 14: Q2 FY2006 Results
Q2 FY2006 Results • Sales of products rose 9% year over year on constant currency rose 11% – U.S. sales of products grew 14% 14% • IP line shipments up in mid 30% range • Product supply issues, erosion in rental and maintenance businesses had negative impact • Gross margin rose to 46.7% compared wit
Slide 15: Strong Operating Cash Flow Increasing Share Repurchases
Strong Operating Cash Flow Increasing Share Repurchases 200 150 ($M) 100 169 126 148 103 50 96 106 90 47 60 0 (36) (50) Q1 FY05 Q2 FY05 Q3 FY05 Q4 FY05 Q1 FY06 Q2 FY06 $ M Operating Cash Flow $ M Share Repurchases* Diluted Common Shares Reduced By Four Percent Since Share Repurchase Program Inceptio
Slide 16: Competitive Advantages & Financial Strength
Competitive Advantages & Financial Strength • Technology transition provides global market opportunity • Clear strategy, strong positioning & competitive advantages • Applications are a key driver & differentiator • Keeping our technology and our customers in the lead • Generating significant operat
Slide 17: 2006 Piper Jaffray Hardware & Communications Conference
2006 Piper Jaffray Hardware & Communications Conference Garry K. McGuire CFO and SVP Corporate Development May 11, 2006 © 2005 Avaya Inc. All rights reserved. - 17 -
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