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Avaya shares fell 45 percent today after the firm said there’s significant doubt about its ability to continue to function as a concern. Various factors impacted Avaya’s decline.

The firm, which provides workplace communications software, reported preliminary financial results that came up short compared to earlier projections.

Avaya’s board of directors also announced the start of two internal investigations. Meanwhile, the Wall Street Journal published a story concerning Avaya’s debt funding, which was raised in late June.

The losses

According to the report’s citations of analyst opinion and market statistics, investors who loaned Avaya money have incurred paper losses exceeding $100 million.

The NYSE-listed company develops enterprise communications software that other companies utilize to manage their contact centers and corporate communication. Avaya also provides complementary tech, including a chatbot tool that helps contact center workers automatically handle frequent client queries.

The corporation recently released the preliminary financial statements for Q3, which ended June 30. Avaya’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $54 million, well below the $140 million to $150 million projections from May.

Avaya’s plans going forward

Avaya’s quarterly sales of $577 million fell short of the company’s May target by more than $100 million. The early findings were released at the same time as an update on the company’s newly raised debt funding.

According to Avaya, it’s presently engaged with consultants to explore alternatives for resolving the 2023 convertible notes. The company cautions there can be no guarantee as to the outcome of that examination.

On July 28, Avaya launched a cost-cutting strategy aimed at reducing its yearly expenditures by $225 million to $250 million. Avaya said today it has already begun executing the project and expects to see “quantifiable savings” in Q1 of the fiscal year 2023.