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As Of Filer Filing For·On·As Docs:Size 8/13/19 Avaya Holdings Corp. 8-K:2,7,9 8/13/19 3:4.1M |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 22K 2: EX-99.1 Miscellaneous Exhibit HTML 329K 3: EX-99.2 Miscellaneous Exhibit HTML 29K
Exhibit |
• | GAAP revenue of $717 million; non-GAAP revenue of $720 million |
• | GAAP
operating margin of (85.5)%; non-GAAP operating margin of 20.1% |
• | Recorded a non-cash goodwill impairment charge of $657 million |
• | Public cloud seats increased more than 170% year-over-year |
• | Awarded
two landmark US Government opportunities in August, including one with the Social Security Administration valued at up to $400 million |
GAAP
| Non-GAAP (1) | |||||||||||||||||||||||
(In millions, except percentages) | Q3 2019 | Q2 2019 | Q3 2018 | Q3 2019 | Q2
2019 | Q3 2018 | ||||||||||||||||||
Revenue | $ | 717 | $ | 709 | $ | 692 | $ | 720 | $ | 714 | $ | 755 | ||||||||||||
Gross
margin | 54.4 | % | 54.4 | % | 50.9 | % | 60.8 | % | 61.5 | % | 61.9 | % | ||||||||||||
Operating
margin | (85.5 | )% | 5.4 | % | (7.1 | )% | 20.1 | % | 20.9 | % | 20.0 | % |
• | On October 1, 2018, Avaya adopted the new revenue recognition standard, Accounting Standards Codification 606 ("ASC 606"), using the modified retrospective transition method. Accordingly, results for reporting periods beginning after September 30, 2018 are presented under ASC 606 while prior period financial information has not been adjusted and continues to be reported in accordance with GAAP that existed
prior to the adoption of ASC 606 ("ASC 605"). |
• | GAAP revenue was $717 million, $8 million higher than the second quarter of fiscal 2019, and $25 million higher than the third quarter of fiscal 2018 ended June 30, 2018. Non-GAAP revenue(1)
was $720 million, $6 million higher than the second quarter of fiscal 2019, and $35 million lower than the third quarter of fiscal 2018. |
• | GAAP gross margin was 54.4%, compared to 54.4% for the second quarter of fiscal 2019 and 50.9% for the third
quarter of fiscal 2018. Non-GAAP gross margin(1) was 60.8%, compared to 61.5% for the second quarter of fiscal 2019 and 61.9% for the third quarter of fiscal 2018. |
• | GAAP operating loss was $613 million, primarily as a result of the aforementioned impairment charge, compared to GAAP operating income of $38
million for the second quarter of fiscal 2019 and an operating loss of $49 million for the third quarter of fiscal 2018. Non-GAAP operating income(1) was $145 million, compared to $149 million for the second quarter of fiscal 2019, and $151 million for the third quarter of fiscal 2018. |
• | GAAP
net loss was $633 million, primarily as a result of the aforementioned impairment charge, compared to GAAP net loss of $13 million for the second quarter of fiscal 2019, and GAAP net loss of $88 million for the third quarter of fiscal 2018. |
• | Adjusted EBITDA(1) was $167 million
or 23.2% of non-GAAP revenue, compared to adjusted EBITDA of $166 million, or 23.2% of non-GAAP revenue, for the second quarter of fiscal 2019 and $175 million, or 23.2% of non-GAAP revenue, for the third quarter of fiscal 2018. |
• | Cash provided by operating activities was $52 million, compared to cash provided
by operating activities of $37 million for the second quarter of fiscal 2019 and cash provided by operating activities of $83 million for the third quarter of fiscal 2018. |
• | At the end of the third quarter of fiscal 2019, cash and cash equivalents totaled $729 million, compared to $735
million at the end of the second quarter of fiscal 2019 and $685 million at the end of the third quarter of fiscal 2018. |
• | Total Contract Value (TCV) of $2.4 billion* |
• | 84%
of non-GAAP revenue was Software & Services |
• | 60% of non-GAAP product revenue was Software |
• | 59% of non-GAAP revenue was Recurring |
• | Added approximately 1,400 new logos |
• | Generated
$52 million in cash flow from operations, $15 million in free cash flow(1) |
• | In August, Avaya was awarded two landmark US Government opportunities. Avaya, along with its service provider partner, was selected by the Social Security Administration to modernize the agency’s UC and CC infrastructure in a 10-year deal valued at
up to $400 million. The second is a multi-year award to provide secure FedRamp Certified Cloud services across several agencies that could be worth up to several hundred million dollars. |
• | Avaya was selected by Intel for Intel’s AI Builders Program. Intel and Avaya engineers are now jointly engaged at deep technical levels to improve the performance and scale of Avaya’s AI solutions, such as Avaya Conversational Intelligence, when deployed on Intel hardware. |
• | Announced partnership with Tenfold to help customers integrate
their Avaya contact center with leading CRM providers such as Salesforce, Microsoft and ServiceNow. |
• | Announced partnership with Even Flow Distribution, a leading South African based value-added distributor of unified communication, telecom, video conferencing, wireless and networking technology, to bring its solutions to market. Even Flow Distribution will supply and support Avaya’s contact center and unified communications solutions, with a particular focus on Avaya IP Office. |
• | Announced
that Avaya IX Workplace unified communications solutions for the enterprise can now deliver emergency data to public safety agencies through an integration with 911 Secure SENTRY™ and RapidSOS. |
• | Announced partnership with Standard Chartered Bank to deliver a multi-year client experience transformation project that will enable the bank to more fully align its services with clients’ fast-paced, digitally connected lives. Using the Avaya OneCloud Private solution enables Standard Chartered Bank to enhance its customers’ experience by using Avaya’s unified communications and contact center solutions being delivered on their own private cloud. |
• | Received
the 2019 Contact Center Vendor of the Year Award at the Frost & Sullivan 2019 India ICT Awards. |
• | GAAP revenue of $735 million to $755 million;
non-GAAP revenue of $738 million to $758 million |
• | GAAP operating income of $37 million to $52 million; GAAP operating margin of ~5% to ~7% |
• | Non-GAAP operating income of $162 million to
$177 million; non-GAAP operating margin of ~22% to ~23% |
• | Adjusted EBITDA of $183 million to $198 million; Adjusted EBITDA margin of ~25% to ~26% |
• | Approximately 111 million
weighted average shares outstanding |
• | GAAP revenue of $2.90 billion to $2.92 billion; non-GAAP revenue of $2.92 billion to $2.94 billion |
◦ | Cloud and innovation
~11% of non-GAAP revenue |
• | GAAP operating loss of $488 million to $473 million; GAAP operating margin of ~(17)% to ~(16)% |
• | Non-GAAP operating income of $626 million to $641 million; non-GAAP operating margin of
~21% to ~22% |
• | Adjusted EBITDA of $705 million to $720 million; Adjusted EBITDA margin of ~24% |
• | Cash flow from operations of ~7% of non-GAAP revenue |
• | Approximately
111 million weighted average shares outstanding |
• | Cash requirements for restructuring, pension & OPEB, cash taxes, capital spending and net cash interest payments for fiscal year 2019 are expected to be: |
◦ | Restructuring: $50 million to $55 million |
◦ | Pension/OPEB:
~$65 million |
◦ | Cash Taxes: $55 million to $65 million |
◦ | Capital Expenditures: ~$120 million |
◦ | Net
Cash Interest Payments: ~$200 million |
Successor | Predecessor | Non- GAAP
Combined(1) | |||||||||||||||||||||||
Three months ended June 30, 2019 | Three months ended June 30, 2018 | Nine months ended June 30, 2019 | Nine months ended June 30, 2018 | ||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||||
Products | $ | 297 | $ | 300 | $ | 908 | $ | 664 | $ | 253 | $ | 917 | |||||||||||||
Services | 420 | 392 | 1,256 | 848 | 351 | 1,199 | |||||||||||||||||||
717 | 692 | 2,164 | 1,512 | 604 | 2,116 | ||||||||||||||||||||
COSTS | |||||||||||||||||||||||||
Products: | |||||||||||||||||||||||||
Costs | 109 | 114 | 329 | 257 | 84 | 341 | |||||||||||||||||||
Amortization
of technology intangible assets | 43 | 44 | 130 | 92 | 3 | 95 | |||||||||||||||||||
Services | 175 | 182 | 522 | 410 | 155 | 565 | |||||||||||||||||||
327 | 340 | 981 | 759 | 242 | 1,001 | ||||||||||||||||||||
GROSS
PROFIT | 390 | 352 | 1,183 | 753 | 362 | 1,115 | |||||||||||||||||||
OPERATING
EXPENSES | |||||||||||||||||||||||||
Selling,
general and administrative | 253 | 281 | 761 | 613 | 264 | 877 | |||||||||||||||||||
Research
and development | 49 | 51 | 154 | 110 | 38 | 148 | |||||||||||||||||||
Amortization
of intangible assets | 41 | 39 | 122 | 86 | 10 | 96 | |||||||||||||||||||
Impairment
charges | 659 | — | 659 | — | — | — | |||||||||||||||||||
Restructuring
charges, net | 1 | 30 | 12 | 80 | 14 | 94 | |||||||||||||||||||
1,003 | 401 | 1,708 | 889 | 326 | 1,215 | ||||||||||||||||||||
OPERATING
(LOSS) INCOME | (613 | ) | (49 | ) | (525 | ) | (136 | ) | 36 | (100 | ) | ||||||||||||||
Interest
expense | (59 | ) | (56 | ) | (177 | ) | (112 | ) | (14 | ) | (126 | ) | |||||||||||||
Other
income (expense), net | 12 | 37 | 35 | 32 | (2 | ) | 30 | ||||||||||||||||||
Reorganization
items, net | — | — | — | — | 3,416 | 3,416 | |||||||||||||||||||
(LOSS)
INCOME BEFORE INCOME TAXES | (660 | ) | (68 | ) | (667 | ) | (216 | ) | 3,436 | 3,220 | |||||||||||||||
Benefit
from (provision for) income taxes | 27 | (20 | ) | 30 | 235 | (459 | ) | (224 | ) | ||||||||||||||||
NET
(LOSS) INCOME | $ | (633 | ) | $ | (88 | ) | $ | (637 | ) | $ | 19 | $ | 2,977 | $ | 2,996 | ||||||||||
(LOSS)
EARNINGS PER SHARE | |||||||||||||||||||||||||
Basic | $ | (5.70 | ) | $ | (0.80 | ) | $ | (5.75 | ) | $ | 0.17 | $ | 5.19 | ||||||||||||
Diluted | $ | (5.70 | ) | $ | (0.80 | ) | $ | (5.75 | ) | $ | 0.17 | $ | 5.19 | ||||||||||||
Weighted
average shares outstanding | |||||||||||||||||||||||||
Basic | 111.0 | 109.8 | 110.7 | 109.8 | 497.3 | ||||||||||||||||||||
Diluted | 111.0 | 109.8 | 110.7 | 111.0 | 497.3 | ||||||||||||||||||||
(1) See
"Use of non-GAAP (Adjusted) Financial Measures" below. |
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 729 | $ | 700 | |||
Accounts
receivable, net | 276 | 377 | |||||
Inventory | 71 | 81 | |||||
Contract
assets | 178 | — | |||||
Contract costs | 128 | — | |||||
Other current
assets | 149 | 170 | |||||
TOTAL CURRENT ASSETS | 1,531 | 1,328 | |||||
Property, plant and equipment, net | 243 | 250 | |||||
Deferred
income taxes, net | 25 | 29 | |||||
Intangible assets, net | 2,978 | 3,234 | |||||
Goodwill, net | 2,105 | 2,764 | |||||
Other
assets | 109 | 74 | |||||
TOTAL ASSETS | $ | 6,991 | $ | 7,679 | |||
LIABILITIES | |||||||
Current
liabilities: | |||||||
Debt maturing within one year | $ | 29 | $ | 29 | |||
Accounts payable | 292 | 266 | |||||
Payroll
and benefit obligations | 126 | 145 | |||||
Contract liabilities | 470 | 484 | |||||
Business
restructuring reserve | 36 | 51 | |||||
Other current liabilities | 130 | 148 | |||||
TOTAL CURRENT LIABILITIES | 1,083 | 1,123 | |||||
Non-current
liabilities: | |||||||
Long-term debt, net of current portion | 3,091 | 3,097 | |||||
Pension obligations | 619 | 671 | |||||
Other
post-retirement obligations | 181 | 176 | |||||
Deferred income taxes, net | 120 | 140 | |||||
Business restructuring reserve | 37 | 47 | |||||
Other
liabilities | 390 | 374 | |||||
TOTAL NON-CURRENT LIABILITIES | 4,438 | 4,505 | |||||
TOTAL LIABILITIES | 5,521 | 5,628 | |||||
Commitments
and contingencies | |||||||
STOCKHOLDERS' EQUITY | |||||||
Preferred stock, $0.01 par value; 55,000,000 shares authorized, no shares issued or outstanding at June 30, 2019 and September 30, 2018 | — | — | |||||
Common
stock, $0.01 par value; 550,000,000 shares authorized; 110,887,967 shares issued and 110,875,287 shares outstanding at June 30, 2019; and 110,218,653 shares issued and 110,012,790 shares outstanding at September 30, 2018 | 1 | 1 | |||||
Additional paid-in capital | 1,756 | 1,745 | |||||
(Accumulated
deficit) retained earnings | (255 | ) | 287 | ||||
Accumulated other comprehensive (loss) income | (32 | ) | 18 | ||||
TOTAL STOCKHOLDERS' EQUITY | 1,470 | 2,051 | |||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,991 | $ | 7,679 |
Successor | Predecessor | Non-GAAP
Combined(1) | |||||||||||||||
Nine months ended June 30, 2019 | Nine months ended June 30, 2018 | ||||||||||||||||
Net cash provided by (used for): | |||||||||||||||||
Operating
activities | $ | 175 | $ | 177 | $ | (414 | ) | $ | (237 | ) | |||||||
Investing
activities | (95 | ) | (192 | ) | (13 | ) | (205 | ) | |||||||||
Financing
activities | (51 | ) | 284 | (102 | ) | 182 | |||||||||||
Effect
of exchange rate changes on cash, cash equivalents, and restricted cash | 1 | (5 | ) | (2 | ) | (7 | ) | ||||||||||
Net
increase (decrease) in cash, cash equivalents, and restricted cash | 30 | 264 | (531 | ) | (267 | ) | |||||||||||
Cash,
cash equivalents, and restricted cash at beginning of period | 704 | 435 | 966 | 966 | |||||||||||||
Cash,
cash equivalents, and restricted cash at end of period | $ | 734 | $ | 699 | $ | 435 | $ | 699 | |||||||||
(1) See
"Use of non-GAAP (Adjusted) Financial Measures" below. |
Successor | Predecessor | Non-GAAP
Combined | |||||||||||||||||||||||
Three months ended June 30, 2019 | Three months ended June 30, 2018 | Nine months ended June 30, 2019 | Nine months ended June 30, 2018 | ||||||||||||||||||||||
Net (loss) income | $ | (633 | ) | $ | (88 | ) | $ | (637 | ) | $ | 19 | $ | 2,977 | $ | 2,996 | ||||||||||
Interest
expense | 59 | 56 | 177 | 112 | 14 | 126 | |||||||||||||||||||
Interest
income | (4 | ) | (1 | ) | (11 | ) | (2 | ) | (2 | ) | (4 | ) | |||||||||||||
(Benefit
from) provision for income taxes | (27 | ) | 20 | (30 | ) | (235 | ) | 459 | 224 | ||||||||||||||||
Depreciation
and amortization | 110 | 119 | 335 | 264 | 31 | 295 | |||||||||||||||||||
EBITDA | (495 | ) | 106 | (166 | ) | 158 | 3,479 | 3,637 | |||||||||||||||||
Impact
of fresh start accounting adjustments | (2 | ) | 54 | 7 | 167 | — | 167 | ||||||||||||||||||
Restructuring
charges, net | 1 | 30 | 12 | 80 | 14 | 94 | |||||||||||||||||||
Advisory
fees | 1 | 3 | 3 | 15 | 3 | 18 | |||||||||||||||||||
Acquisition-related
costs | 1 | 4 | 8 | 11 | — | 11 | |||||||||||||||||||
Reorganization
items, net | — | — | — | — | (3,416 | ) | (3,416 | ) | |||||||||||||||||
Non-cash
share-based compensation | 8 | 7 | 19 | 13 | — | 13 | |||||||||||||||||||
Impairment
charges | 659 | — | 659 | — | — | — | |||||||||||||||||||
Loss
on sale/disposal of long-lived assets, net | — | 2 | — | 4 | 1 | 5 | |||||||||||||||||||
Resolution
of certain legal matters | — | — | — | — | 37 | 37 | |||||||||||||||||||
Change
in fair value of Emergence Date Warrants | (7 | ) | (6 | ) | (28 | ) | 9 | — | 9 | ||||||||||||||||
Loss
(gain) on foreign currency transactions | 1 | (25 | ) | 8 | (24 | ) | — | (24 | ) | ||||||||||||||||
Pension/OPEB/nonretirement
postemployment benefits and long-term disability costs | — | — | — | — | 17 | 17 | |||||||||||||||||||
Adjusted
EBITDA | $ | 167 | $ | 175 | $ | 522 | $ | 433 | $ | 135 | $ | 568 |
Three
Months Ended | Change | Three Months Ended | ||||||||||||||||||||||||||||||||||||
Adj. for Fresh Start Accounting | Non-GAAP June 30, 2019 | Non-GAAP
June 30, 2018 (4) | Amount | Pct. | Pct., net of fx impact | Non-GAAP Mar. 31, 2019 (1) | Non-GAAP Dec.
31, 2018 (2) | Non-GAAP Sept. 30, 2018 (3) | ||||||||||||||||||||||||||||||
Revenue by Segment | ||||||||||||||||||||||||||||||||||||||
Products
& Solutions | $ | 298 | $ | — | $ | 298 | $ | 322 | $ | (24 | ) | (7 | )% | (7 | )% | $ | 289 | $ | 326 | $ | 336 | |||||||||||||||||
Services | 422 | — | 422 | 433 | (11 | ) | (3 | )% | (1 | )% | 425 | 422 | 434 | |||||||||||||||||||||||||
Unallocated
amounts | (3 | ) | 3 | — | — | — | n/a | n/a | — | — | — | |||||||||||||||||||||||||||
Total
revenue | $ | 717 | $ | 3 | $ | 720 | $ | 755 | $ | (35 | ) | (5 | )% | (3 | )% | $ | 714 | $ | 748 | $ | 770 | |||||||||||||||||
Revenue
by Geography | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 392 | $ | 2 | $ | 394 | $ | 399 | $ | (5 | ) | (1 | )% | (1 | )% | $ | 378 | $ | 401 | $ | 417 | |||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||||
EMEA | 183 | — | 183 | 202 | (19 | ) | (9 | )% | (6 | )% | 189 | 200 | 202 | |||||||||||||||||||||||||
APAC
- Asia Pacific | 85 | — | 85 | 86 | (1 | ) | (1 | )% | 1 | % | 80 | 79 | 81 | |||||||||||||||||||||||||
Americas
International | 57 | 1 | 58 | 68 | (10 | ) | (15 | )% | (12 | )% | 67 | 68 | 70 | |||||||||||||||||||||||||
Total
International | 325 | 1 | 326 | 356 | (30 | ) | (8 | )% | (6 | )% | 336 | 347 | 353 | |||||||||||||||||||||||||
Total
revenue | $ | 717 | $ | 3 | $ | 720 | $ | 755 | $ | (35 | ) | (5 | )% | (3 | )% | $ | 714 | $ | 748 | $ | 770 |
(1)
- (4) Reconciliation of Non-GAAP measures above: | ||||||||||||||||||||||||
(1) Q219 Non-GAAP Results | (2) Q119 Non-GAAP Results | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
Adj. for Fresh Start Accounting | Non-GAAP Mar. 31, 2019 | Adj. for Fresh Start Accounting | Non-GAAP Dec. 31, 2018 | |||||||||||||||||||||
Revenue
by Segment | ||||||||||||||||||||||||
Products & Solutions | $ | 289 | $ | — | $ | 289 | $ | 326 | $ | — | $ | 326 | ||||||||||||
Services | 425 | — | 425 | 422 | — | 422 | ||||||||||||||||||
Unallocated
amounts | (5 | ) | 5 | — | (10 | ) | 10 | — | ||||||||||||||||
Total
revenue | $ | 709 | $ | 5 | $ | 714 | $ | 738 | $ | 10 | $ | 748 | ||||||||||||
Revenue
by Geography | ||||||||||||||||||||||||
U.S. | $ | 375 | $ | 3 | $ | 378 | $ | 394 | $ | 7 | $ | 401 | ||||||||||||
International: | ||||||||||||||||||||||||
EMEA | 188 | 1 | 189 | 199 | 1 | 200 | ||||||||||||||||||
APAC
- Asia Pacific | 79 | 1 | 80 | 78 | 1 | 79 | ||||||||||||||||||
Americas
International | 67 | — | 67 | 67 | 1 | 68 | ||||||||||||||||||
Total
International | 334 | 2 | 336 | 344 | 3 | 347 | ||||||||||||||||||
Total
revenue | $ | 709 | $ | 5 | $ | 714 | $ | 738 | $ | 10 | $ | 748 |
(3) Q418
Non-GAAP Results | (4) Q318 Non-GAAP Results | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
Adj.
for Fresh Start Accounting | Non-GAAP Sept. 30, 2018 | Adj. for Fresh Start Accounting | Non-GAAP June 30, 2018 | |||||||||||||||||||||
Revenue by Segment | ||||||||||||||||||||||||
Products
& Solutions | $ | 336 | $ | — | $ | 336 | $ | 322 | — | $ | 322 | |||||||||||||
Services | 434 | — | 434 | 433 | — | 433 | ||||||||||||||||||
Unallocated
amounts | (35 | ) | 35 | — | (63 | ) | 63 | — | ||||||||||||||||
Total
revenue | $ | 735 | $ | 35 | $ | 770 | $ | 692 | $ | 63 | $ | 755 | ||||||||||||
Revenue
by Geography | ||||||||||||||||||||||||
U.S. | $ | 393 | $ | 24 | $ | 417 | $ | 356 | $ | 43 | $ | 399 | ||||||||||||
International: | ||||||||||||||||||||||||
EMEA | 196 | 6 | 202 | 193 | 9 | 202 | ||||||||||||||||||
APAC
- Asia Pacific | 78 | 3 | 81 | 81 | 5 | 86 | ||||||||||||||||||
Americas
International | 68 | 2 | 70 | 62 | 6 | 68 | ||||||||||||||||||
Total
International | 342 | 11 | 353 | 336 | 20 | 356 | ||||||||||||||||||
Total
revenue | $ | 735 | $ | 35 | $ | 770 | $ | 692 | $ | 63 | $ | 755 |
Three Months Ended | ||||||||||||||||||||
Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin | ||||||||||||||||||||
Gross
Profit | $ | 390 | $ | 386 | $ | 407 | $ | 390 | $ | 352 | ||||||||||
Items
excluded: | ||||||||||||||||||||
Adj. for fresh start accounting | 5 | 9 | 19 | 54 | 69 | |||||||||||||||
Amortization
of technology intangible assets | 43 | 44 | 43 | 43 | 44 | |||||||||||||||
Loss
on disposal of long-lived assets | — | — | — | — | 2 | |||||||||||||||
Non-cash
share-based compensation | — | — | — | 1 | — | |||||||||||||||
Non-GAAP
Gross Profit | $ | 438 | $ | 439 | $ | 469 | $ | 488 | $ | 467 | ||||||||||
GAAP
Gross Margin | 54.4 | % | 54.4 | % | 55.1 | % | 53.1 | % | 50.9 | % | ||||||||||
Non-GAAP
Gross Margin | 60.8 | % | 61.5 | % | 62.7 | % | 63.4 | % | 61.9 | % | ||||||||||
Reconciliation
of Non-GAAP Operating Income | ||||||||||||||||||||
Operating (Loss) Income | $ | (613 | ) | $ | 38 | $ | 50 | $ | 11 | $ | (49 | ) | ||||||||
Items
excluded: | ||||||||||||||||||||
Adj. for fresh start accounting | 4 | 12 | 20 | 48 | 71 | |||||||||||||||
Amortization
of intangible assets | 84 | 85 | 83 | 84 | 83 | |||||||||||||||
Impairment
charges | 659 | — | — | — | — | |||||||||||||||
Restructuring
charges, net | 1 | 4 | 7 | 1 | 30 | |||||||||||||||
Acquisition-related
costs | 1 | 4 | 3 | 4 | 4 | |||||||||||||||
Loss
on disposal of long-lived assets | — | — | — | — | 2 | |||||||||||||||
Advisory
fees | 1 | 1 | 1 | 3 | 3 | |||||||||||||||
Non-cash
share-based compensation | 8 | 5 | 6 | 6 | 7 | |||||||||||||||
Non-GAAP
Operating Income | $ | 145 | $ | 149 | $ | 170 | $ | 157 | $ | 151 | ||||||||||
GAAP
Operating Margin | -85.5 | % | 5.4 | % | 6.8 | % | 1.5 | % | -7.1 | % | ||||||||||
Non-GAAP
Operating Margin | 20.1 | % | 20.9 | % | 22.7 | % | 20.4 | % | 20.0 | % |
Three
months ended | ||||||||||||||||||||
Reconciliation of Non-GAAP
Gross Profit and Non-GAAP Gross Margin - Products | ||||||||||||||||||||
Revenue | $ | 297 | $ | 287 | $ | 324 | $ | 325 | $ | 300 | ||||||||||
Costs | 109 | 105 | 115 | 115 | 114 | |||||||||||||||
Amortization
of technology intangible assets | 43 | 44 | 43 | 43 | 44 | |||||||||||||||
GAAP
Gross Profit | 145 | 138 | 166 | 167 | 142 | |||||||||||||||
Items
excluded: | ||||||||||||||||||||
Adj. for fresh start accounting | 2 | 2 | 5 | 16 | 24 | |||||||||||||||
Amortization
of technology intangible assets | 43 | 44 | 43 | 43 | 44 | |||||||||||||||
Loss
on disposal of long-lived assets | — | — | — | — | 1 | |||||||||||||||
Non-GAAP
Gross Profit | $ | 190 | $ | 184 | $ | 214 | $ | 226 | $ | 211 | ||||||||||
GAAP
Gross Margin | 48.8 | % | 48.1 | % | 51.2 | % | 51.4 | % | 47.3 | % | ||||||||||
Non-GAAP
Gross Margin | 63.8 | % | 63.7 | % | 65.6 | % | 67.3 | % | 65.5 | % | ||||||||||
Reconciliation
of Non-GAAP Gross Profit and Non-GAAP Gross Margin - Services | ||||||||||||||||||||
Revenue | $ | 420 | $ | 422 | $ | 414 | $ | 410 | $ | 392 | ||||||||||
Costs | 175 | 174 | 173 | 187 | 182 | |||||||||||||||
GAAP
Gross Profit | 245 | 248 | 241 | 223 | 210 | |||||||||||||||
Items
excluded: | ||||||||||||||||||||
Adj. for fresh start accounting | 3 | 7 | 14 | 38 | 45 | |||||||||||||||
Loss
on disposal of long-lived assets | — | — | — | — | 1 | |||||||||||||||
Share-based
comp | — | — | — | 1 | — | |||||||||||||||
Non-GAAP
Gross Profit | $ | 248 | $ | 255 | $ | 255 | $ | 262 | $ | 256 | ||||||||||
GAAP
Gross Margin | 58.3 | % | 58.8 | % | 58.2 | % | 54.4 | % | 53.6 | % | ||||||||||
Non-GAAP
Gross Margin | 58.8 | % | 60.0 | % | 60.4 | % | 60.4 | % | 59.1 | % |
Q3 FY19 results under ASC 606 | ASC
606 Impact | Q3 FY19 results under ASC 605 | ||||||||||
REVENUE | ||||||||||||
Products | $ | 297 | $ | (26 | ) | $ | 271 | |||||
Services | 420 | (19 | ) | 401 | ||||||||
717 | (45 | ) | 672 | |||||||||
COSTS | ||||||||||||
Products: | ||||||||||||
Costs | 109 | (4 | ) | 105 | ||||||||
Amortization
of technology intangible assets | 43 | — | 43 | |||||||||
Services | 175 | (7 | ) | 168 | ||||||||
327 | (11 | ) | 316 | |||||||||
GROSS
PROFIT | 390 | (34 | ) | 356 | ||||||||
OPERATING EXPENSES | ||||||||||||
Selling,
general and administrative | 253 | (1 | ) | 252 | ||||||||
Research and development | 49 | — | 49 | |||||||||
Amortization
of intangible assets | 41 | — | 41 | |||||||||
Impairment charges | 659 | — | 659 | |||||||||
Restructuring
charges, net | 1 | — | 1 | |||||||||
1,003 | (1 | ) | 1,002 | |||||||||
OPERATING
LOSS | (613 | ) | (33 | ) | (646 | ) | ||||||
Interest expense | (59 | ) | — | (59 | ) | |||||||
Other
income, net | 12 | — | 12 | |||||||||
LOSS BEFORE INCOME TAXES | (660 | ) | (33 | ) | (693 | ) | ||||||
Benefit
from (provision for) income taxes | 27 | (37 | ) | (10 | ) | |||||||
NET LOSS | $ | (633 | ) | $ | (70 | ) | $ | (703 | ) |
Three months ended | ||||||||||||||||||||
Net cash provided by operating
activities | $ | 52 | $ | 37 | $ | 86 | $ | 25 | $ | 83 | ||||||||||
Less: | ||||||||||||||||||||
Capital
expenditures | (37 | ) | (26 | ) | (21 | ) | (25 | ) | (18 | ) | ||||||||||
Free
cash flow | $ | 15 | $ | 11 | $ | 65 | $ | — | $ | 65 |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on / For Period end: | 8/13/19 | |||
6/30/19 | 4 | |||
3/31/19 | 10-Q, 4 | |||
12/31/18 | 10-Q, NT 10-Q, SD | |||
10/1/18 | ||||
9/30/18 | 10-K, 10-K/A | |||
6/30/18 | 10-Q | |||
12/16/17 | ||||
12/15/17 | 10-12B/A | |||
10/1/17 | ||||
List all Filings |