Continuation of series posted by Laura Kleekamp at VITEC, Inc. www.vitecinc.com In July I published a 3-part series on Avaya’s purchase of the Nortel PBX line of business, and some potential implications for Nortel and Avaya users. In the second part of the series, I shared my observations on Avaya’s financial situation.   Avaya released second quarter financial results on August 11th, which can be viewed in their 10-Q at http://investors.avaya.com/sec/sec.asp.   I am not a financial analyst; and my observations are made from the point of view of someone trying to assess operational risk as a result of Avaya’s ongoing financial health.   On the surface, the results on the income statement look good, with year-over-year revenue and margin growth posted.   Avaya Income Statement (Millions)   Three Months Ended       ...

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 Preface Part 1 in a 3-part series posted by Laura Kleekamp at VITEC, Inc.    www.vitecinc.com As a 20+ year contact center veteran starting in a new position at VITEC, Inc. this summer, I started doing some research on Avaya and their plans for Nortel.  Having been familiar with the Nortel products from both a sales and operational perspective I thought this would be easy, and really did not expect to find anything extraordinary.  In fact, I was wrong on both counts.  I will be posting a 3 part series on my findings and publishing them for my fellow ACCP members’ benefit.   Part 1 – Avaya’s Purchase of Nortel PBX Line     Nortel filed for bankruptcy in January, 2009 and has gradually sold off parts of its business to various equipment providers. Avaya purchased the Nortel enterprise PBX line of business in December, 2009, and issued public securities in January, 2010 to finance the purchase.   Avaya published ...

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Part 2 – Avaya’s Financial Health Part 2 in a 3-part series posted by Laura Kleekamp at VITEC, Inc.    www.vitecinc.com   I think that both Nortel and Avaya users should monitor not only the equipment roadmap as it unfolds, but also Avaya’s ongoing financial health. As part of my research, I delved into Avaya’s financials, to better understand their ability to invest in the technology integration, and support the ongoing base of business.   The financial facts as of first quarter, 2010: Avaya has been operating at a net loss since October, 2007. Revenues have been declining over time, and FY 2009 revenues were down 21% compared to FY 2007. Almost three fourths of Avaya’s assets on the March 31, 2010 balance sheet were intangible assets and goodwill, primarily associated with the Nortel purchase. Avaya reported a $747M stockholder deficiency on their balance sheet. Avaya incurred substantial debt to acquire the Nortel eq...

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Part 3 - Due Diligence: Be in the Driver’s Seat Part 3 in a 3-part series posted by Laura Kleekamp at VITEC, Inc. www.vitecinc.com If I were the contact center decision maker, I’d be assessing my options right away. Knowing that Avaya’s purchase of Nortel assets will drive change for both Nortel and Avaya customers, contact center organizations need to plan now for the future, and be in the driver’s seat, rather than letting circumstances drive decision making.   Contact center and IT leadership can take some immediate steps to be in the driver’s seat, including the following: Conduct a risk assessment for your current operation Age of current system/availability of parts & experienced technicians Potential need for more capacity & cost Outage risks Need for new features or bug fixes Complete immediate risk management steps Meridian & SL-1 users – purchase crash kits, spa...

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