Avaya's Q1 unaudited results to December 31st 2015 were below expectations with total revenues of $958m, down $50m compared to the prior quarter, down $121m year-over-year, and below the company's expected range.
For the quarter, adjusted EBITDA was $228m which compares to adjusted EBITDA of $246m for the prior quarter and $239m for the first quarter of fiscal 2015.
GAAP operating income was $91m and non-GAAP operating income was $185m which compares to non-GAAP operating income of $202m for the prior quarter and $193m for the first quarter of fiscal 2015.
Kevin Kennedy, President and CEO, said: "In the first fiscal quarter, the company's business model advanced, continuing the transition to a software and services platform.
"Estimated total contract value increased sequentially and year-over-year to record levels and key metrics, such as non-GAAP gross margins, non-GAAP operating margin, and adjusted EBITDA as a percentage of revenue increased year-over-year.
"Revenue declined year-over-year and was below our expectations while free cash flow was positive and we continued to execute on our cost reduction initiatives."