Avaya — Q4 FY2013 Earnings Presentation
13 slides from Avaya's earnings presentation, Nov 20, 2013
Slide 1: Avaya Q4 2013 Earnings Call
The Power of We™ Avaya Q4 2013 Earnings Call November 20, 2013
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 2013 Key Messages
Fiscal Q4 2013 Key Messages Avaya remains committed to broadening its innovative product portfolio Avaya is aligning its products and Go-To-Market approach with the needs of its served markets Avaya’s Q4 financial performance reflects solid execution against its business model “Avaya closed fiscal 2
Slide 4: Fiscal Q4 2013 Financial Highlights
Fiscal Q4 2013 Financial Highlights (Amounts other than Revenue, Cash Flow, and Cash are non-GAAP) Revenue of $1.2 billion increased 4.3% over the prior quarter – Increases in all geographies and in US Government-related business – Second quarter of sequential revenue growth – Product Book-to-Bill w
Slide 5: Income Statement
Income Statement (All amounts non-GAAP, other than Revenue, and dollars in millions) FQ4 2013 FQ3 2013 FQ4 2012 Revenue: Product $617 $560 $652 Services $583 $590 $625 Total Revenue $1,200 $1,150 $1,277 Gross Margin: Product 62.4% 58.5% 57.2% Services 53.5% 53.6% 51.8% Total Gross Margin 58.1% 56.0%
Slide 6: Revenue by Geographic Region
Revenue by Geographic Region (Amounts GAAP and dollars in millions) FQ4 2013 FQ3 2013 FQ4 2012 Revenue U.S. $659 $639 $694 EMEA $313 $297 $327 APAC $113 $105 $126 AI $115 $109 $130 Total $1, 200 $1,150 $1,277 % of Total Revenue U.S. 55% 56% 54% EMEA 26% 26% 26% APAC 9% 9% 10% AI 10% 9% 10% Total 100
Slide 7: Balance Sheet and Operating Metrics
Balance Sheet and Operating Metrics (Dollars in millions, Balance sheet items as of the end of the period indicated) FQ4 2013 FQ3 2013 FQ4 2012 Total Cash and Cash $288 $271 $337 Equivalents Cash from Operations $52 $11 $104 Capital Expenditures and $34 $33 $37 Capitalized Software Days Sales Outsta
Slide 8: Avaya Operating Model
Avaya Operating Model (Dollars in millions) Upon realization of cost Quarterly Operating Model (after benefits from Cost Reduction Actions1) reductions, model Revenue Range $1,100 - $1,150 performance provides healthy profitability Adjusted EBITDA Range $250 - $275 Adjusted EBITDA Margin 22.7% - 23.
Slide 9: Avaya Debt Maturity Profile
Avaya Debt Maturity Profile ($ in Billions, by calendar year) Cash Pay Notes (9.75%) TLB – 3 (4.8%) Senior Secured Bonds (9%) TLB – 4 (7.5%) TLB – 5 (8.0%) 2nd Lien Bonds (10.5%) PIK Toggle Notes (10.125%) Senior Secured Bonds (7%) $2.5 2.0 $2.0 $1.5 1.4 1.3 1.1 $1.0 $0.5 0.15 $0.0 2013 2014 2015 20
Slide 10: Avaya Liquidity
Avaya Liquidity Cash plus additional capacity under existing revolvers* (as of the end of each period indicated) 1000 $ Millions 900 200 800 200 200 200 200 200 200 700 200 200 600 335 500 335 335 335 335 335 335 335 335 400 300 200 400 345 355 337 271 285 302 271 288 100 0 4Q11 1Q12 2Q12 3Q12 4Q12
Slide 11: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA 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, 2013 2012 2013 2012 Net income (loss) $ 23 $ 10 $ (364) $ (344) Interest expense 121 10
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation Gross Margin and Operating Income Avaya Inc. S upplemental S chedules of Non-GAAP Reconciliations (Unaudited; in millions) For the Twelve For the Three Months Ended Months Ended S ept. 30, Dec. 31, Mar. 31, June 30, S ept. 30, S ept. 30, S ept. 30, 2012 2012 2013 2013 2013 20
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation Product and Services Gross Margins Avaya Inc. S upplemental S chedules of Non-GAAP Reconciliation of Gross Profit and Gross Margin by Portfolio (Unaudited; in millions) For the Twelve For the Three Months Ended Months Ended S ept. 30, Dec. 31, Mar. 31, June 30, S ept. 30, S e