Avaya has scheduled an analyst call today to discuss its vision, strategy and completed acquisition of Nortel's Enterprise Solutions business unit and its Federal Government Systems subsidiary. The merged entities will have annual revenues of about $5.5 billion, an industry leading total, with strong financial ratios (22%-28% EBITDA/Revenues and 18%-22% operating margin). Though the past year has been difficult due to the economy, Avaya's fourth quarter financial results will end on a positive note.Kevin Kennedy, President & CEO, will review the key motivational drivers for its Nortel buy and how Nortel supports and enhances Avaya's competitive market position. He will stress that Avaya and Nortel ES both have had a common strategic vision focused on the enterprise communications market. According to Avaya, based on global published market research reports, the two companies have been either the leader or runner-up in each of the enterprise market segments they have served, except for data communications. Avaya will greatly benefit from a significant increase in the size of their customer base as measured by seats, with new opportunities to market its many value-added services to the Nortel base. The current channel-centric Go-to-Market model Avaya implemented within the past year will be accelerated, because an overwhelming majority of Nortel's sales were through third parties, such as Service Providers (SPs), system integrators, and resellers, greatly increasing the system supplier's scale of geographic operations and industry breadth. Also important to the company is Nortel ES R&D to accelerate innovation of new solutions.
More details will be discussed following the call.
