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Avaya Holdings Corp. [AVYAW] a leading provider of business communications solutions, announced its financial results for the quarter ended December 31, 2022. The company reported a net loss of $164 million for the quarter, compared to a net loss of $66 million in the same period last year. Quarterly revenue stood at $418 million, a decrease from $713 million in the previous year.
Despite the decline in revenue, Avaya managed to maintain a gross profit of $148 million. However, the company continues to face challenges in reducing its operating expenses, with selling, general and administrative expenses amounting to $221 million and research and development expenses totaling $50 million. Additionally, the company incurred restructuring charges of $10 million during the quarter.
The decline in revenue can be attributed to lower sales in both products and services segments. Product revenue amounted to $136 million, a decrease from $231 million in the previous year, while service revenue stood at $282 million, down from $482 million in the same period last year. The company also reported higher costs of goods and services in both segments.
On the balance sheet front, Avaya's total stockholders' equity stands at a deficit of $1.64 billion as of December 31, 2022, compared to a deficit of $1.30 billion in the previous quarter. The company's liabilities amount to $5.35 billion, with $3.36 billion in short-term debt and $1.17 billion in noncurrent liabilities.
Avaya reported a loss per share of $1.89 for the quarter, both on a basic and diluted basis. This is compared to a loss per share of $0.79 in the same period last year. The increase in losses per share can be attributed to the decline in net income.
Looking ahead, Avaya remains focused on improving its financial performance and reducing costs. The company is actively pursuing opportunities to streamline its operations and enhance its product and service offerings. Avaya is also working to strengthen its balance sheet and manage its debt levels.
In conclusion, Avaya Holdings Corp reported a net loss of $164 million for the quarter, with revenue declining to $418 million. The company faces challenges in reducing its operating expenses and improving its financial performance. Avaya will continue to focus on cost reduction and enhancing its product and service offerings to drive future growth.