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Will Aussie tech suppliers be hit by Avaya’s bankruptcy?

Leon Spencer | Jan. 23, 2017
Local critical IT infrastructure software company, Integrated Research, says it is safe – for now

Avaya's local business remains confident that it will be "business as usual" while its global headquarters works through its financial woes.

"While news on the future of Avaya has triggered speculation on the direction of the company, Avaya Australia and New Zealand assures it is business as usual in the local region. Having transformed over the past 24 months, Avaya A/NZ closed fiscal 2016 with its strongest quarter in 12 quarters.

"This result mirrors international performance, with global revenue reaching $US958 million, up $US76m from the previous quarter, and EBITDA increasing by 25.3 per cent to $US223m in the same period," the spokesperson said.

Certainly, the company's local operation appears to be well and truly in the black, with Avaya Australia reporting annual profits of $2.97 million off the back of AU$68.43 million revenue for the full year ending September 2016, according to documents lodged with the Australian Securities and Investments Commission (ASIC).

The profit result was up by more than $500,000 on the same period the previous year, while revenue was down slightly, by around AU$2 million.

Meanwhile, Avaya was reportedly granted approval by a US bankruptcy court on January 20 to gain access to $US425 million of the $US725 million loan facility that is being underwritten by Citibank.

The company's Chapter 11 bankruptcy process continues.

At the time of writing, Integrated Research's share price stood at AU$2.78.

Source: ARN AU 

 

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