Avaya stock dropped more than 13% to $15.94 on the New York Stock Exchange after the Santa Clara-based company posted a loss of $13 million, or 12 cents a share, in its fiscal second quarter vs. a loss of $130 million, or $1.18 a share, in the year-earlier quarter.
Analysts polled by FactSet had been expecting the company to post earnings of 75 cents a share. Revenue rose to $709 million from $672 million a year ago.
"Our top-line results and earnings fell short of expectations," CEO Jim Chirico said in a statement. "In response, we have implemented a number of corrective actions to drive improved performance."
Among the corrective actions is engaging JPMorgan "to evaluate strategic alternatives to maximize shareholder value," the company said - suggesting that previous indications of interest from a private equity firm may no longer be on the table.
Reuters in late March reported that Avaya's board was evaluating an offer from a private-equity firm that valued it at more than $20 a share.
Avaya emerged from bankruptcy protection in late 2017. It was spun off from Lucent Technologies in 2000, which used to be part of AT&T.