Avaya has endured a number of financial and internal upsets, which could spell the beginning of the end.
The communication and collaboration platform's revenues have declined for the past year, dropping from $732 million to $577 million.
The news of Avaya's struggling financial situation came at around the same time as the company's decision to 'remove' CEO Jim Chirico.
The new CEO and President of Avaya, Alan Masarek, released a statement alongside the additional preliminary Q3 results, which said:
"Our preliminary financial results for the quarter reflect operational and execution shortcomings, amplified against the backdrop of a volatile economic environment.
"We are taking aggressive actions to right-size Avaya's cost structure to align with our contractual, recurring revenue business model."
Avaya's share price has been following suit, dropping over 90 per cent since the start of last year.
The company has now announced its Q3 revenues have sunk by 20 per cent year-over-year. Its share price fell by 37.5% the same day.
As if things couldn't get any worse at the Avaya camp, the $600 million deal that the company struck with lenders, clients of Goldman and JP Morgan, may have been done under false pretences.
According to the Wall Street Journal, the company cut its earnings forecast by more than 60% weeks after borrowing the money, and it alleged that there were no explanations provided for the difference in earnings reports.
It has been reported that lenders are now threatening to default on the loan if Avaya does not file its quarterly results.
The Avaya Audit Committee has opened an internal investigation following its quarterly earnings results and a whistle-blower letter which has negatively implicated the company.
