Avaya is being restricted by two key factors after seeing growth stall for a second consecutive quarter, its CEO has said.
Sales for the vendor’s Q2 were $716m, down three percent from the same quarter last year.
Chief Exec Jim Chirico said the vendor’s top line has been hampered by “two temporary dynamics”.
The first is a delay in several deals, including a huge $400m CCaaS deal with a financial Institution that Avaya revealed in February.
“It is significant, not just because of the size of the deal, one of the largest in the history of the company, but also because it leverages a significant number of our latest innovations, including AI, biometric security and advanced analytics and represents a displacement of several incumbent competitors,” Chirico said.
“Because of the nature of the CCaaS deal, we were unable to recognize revenue we had assumed would be realized in Q1, which will now materialize beginning in the second half of FY '22.”
Chirico said the second factor was continuing lockdowns, particularly in the US and western Europe. He added that deal approvals and contract activities stalled with many customers.
“What's important to note is that these deals were not lost, and projects have not been canceled, but we did see a number of deals slip by a few weeks, many of which have since been closed,” the CEO explained.
