Avaya's Reorganization Plan Filing: 10 Key Takeaways For Partners

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Revenue Declines Ahead

Avaya is predicting overall revenue will steadily drop over the next three fiscal years, which end Sept. 30, according to the filing. The vendor said it anticipates revenue to drop 14 percent in fiscal year 2017 to $3.17 billion, followed by a 12 percent decline in fiscal year 2018 to $2.77 billion, then hitting a low of $2.69 billion in fiscal year 2019.

The company also said in the filing that its expects gross margins to drop over the next few years from $2.27 billion in fiscal year 2016 to $1.69 billion in fiscal year 2019. Avaya expects revenue and gross margins to increase slightly starting in 2020, according to the filing. 

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