Avaya Holdings Corp. (NYSE: AVYA) reported fourth quarter and fiscal 2018 financials. For the fourth quarter revenue was USD 735 million. Public Cloud MRR grew 165% year over year. “Our strong finish to the fiscal year was the direct result of accelerating business momentum driven by our forward facing investment strategy,” said Jim Chirico, President and CEO, Avaya. “Our public cloud solutions are gaining traction as we leverage the strong Avaya brand and our enterprise installed base. Additionally, we are investing in technology that complements our core solutions, including artificial intelligence and mobility. Our foundation is solid and we are well positioned for the growth in 2019 and beyond.”
Gross margin for the combined fiscal 2018 periods was 52.8%. Non-GAAP gross margin for the combined fiscal 2018 periods was 62.5%, which compares to 62.0% for fiscal 2017. Operating loss for the combined fiscal 2018 periods was $89 million, primarily a result of $275 million for the amortization of intangible assets as well as $95 million of restructuring charges, compared to operating income of $171 million for fiscal 2017. Non-GAAP operating income was $637 million, or 20.8% of revenue, for the combined fiscal 2018 periods, compared to $703 million, or 21.5% of revenue for fiscal 2017. Net income for the combined fiscal 2018 periods was $3,264 million compared to a net loss of $182 million in the prior year. Combined fiscal 2018 adjusted EBITDA of $746 million represented 24.4% of non-GAAP revenue, compared to $866 million for fiscal 2017.