Avaya Files IPO: S-1 Paints a Bleak Picture

I just took a peek at Avaya’s S-1 filing with the SEC.

To these admittedly non-financial eyes, this ain’t pretty.

We learn that this legacy PBX vendor, which had pinned its hopes on something called unified communications, ended its 2010 fiscal year last September with a net loss of over $800 million.

And it appears from their income performance for the first six months of 2011 that they are ahead of schedule: dripping red ink at the rate of $600 million.

On the balance sheet, they’ve accumulated around $6 billion in debt, a result of the pricey private equity buyout by Silver Lake and TPG in 2007 and then the purchase of Nortel’s Enterprise Solutions business in 2009.

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