Shares of Avaya Holdings Corp. (AVYA) tumbled 12.46% to $15.52 Monday after the digital communications company missed its first-quarter sales guidance.
The Santa Clara, Calif.-based company reported income of $9 million, down from $3.2 billion a year ago. Avaya filed for bankruptcy protection under Chapter 11 in January 2017 and emerged during the first quarter of fiscal 2018.
Avaya posted revenue of $738 million, compared with $752 million a year ago, and down from previous guidance of $750 million to $775 million. Jim Chirico, president and CEO, said in statement that revenue was "was impacted by a few discrete items versus our outlook, which included the federal government shutdown."
"That said, our product portfolio has never been stronger, and our cloud solutions continue to win the support of our customers, who are choosing Avaya for the innovative solutions that we are bringing to market," Chirico said.
Total contract value increased 8% year over year to $2.4 billion.
Looking ahead, Avaya said that it expects second quarter revenue to range from $730 million to $760 million and full-year revenue to range from $3.01 billion to $3.12 billion.
Separately, the company said Kieran McGrath will become senior vice president and chief financial officer of Avaya effective Feb. 15, and Pat O'Malley will become senior vice president, growth initiatives.
McGrath has 30-plus years of technology industry financial, operational and transformational experience in software as a service, cloud computing, and technology services, the company said, was most recently executive vice president and chief financial officer at CA Technologies from July 2016 until the company's acquisition in November 2018.