Avaya Warns of Loss on Lower Sales
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Avaya Inc. said it will report a fiscal first-quarter loss, instead of a profit as expected by Wall Street analysts, sparking a sell-off of its stock.
Avaya, a leader in call centers and voice messaging and office telephone systems, said it will likely report revenue of $1.3 billion for the quarter, contrasted with the $1.41 billion analysts expected.
The company said its loss from ongoing operations will be 8 cents to 10 cents a share, after an accounting change related to goodwill amortization, for the quarter ended December. Analysts were expecting 4 cents, according to Thomson Financial/First Call.
Shares of Avaya fell 17%, or $2.12, to $10.35 on the New York Stock Exchange. In after-hours trading, however, the stock reversed direction, rising 11%, or $1.15, to hit $11.50.
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