Stock Alert: Avaya Holdings Climbs 18%

(RTTNews) - Shares of Avaya Holdings Corp. (AVYA), a provider of digital communications products and services, are gaining more than 18 percent or $1.95 in Monday's morning trade at $12.42. The stock has traded in a range of $6.13 to $15.30 in the past 52 weeks.

Monday, Avaya reported that its net loss for the second quarter widened to $672 million or $7.24 per share from $13 million or $0.12 per share in the year-ago period. The latest quarter's results include a non-cash goodwill impairment charge of $624 million. Revenue for the quarter declined to $682 million from $709 million in the prior-year quarter.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share for the quarter on revenues of $624.2 million. Analysts' estimates typically exclude special items.

Avaya said it signed 79 deals with a total contract value or TCV of over $1 million in the quarter. The company's spaces video and collaboration usage grew 2,100 percent as it delivered nearly 400,000 new licenses in the quarter. Subscription revenue grew about 200 percent quarter over quarter.

For the third quarter, Avaya projects reported revenue of $674 million to $704 million, and adjusted revenue of $675 million to $705 million.

The company also said is withdrawing its prior annual guidance for fiscal year 2020 due to the uncertainties arising from the impact of the COVID-19 pandemic.