Exhibit 99.1
Avaya Holdings Corp.
Reconciliation of ASC 606 to ASC 605 GAAP results
Three months ended December 31, 2018
(Unaudited; in millions)
Q1 FY19 results under ASC 606 | ASC 606 Impact | Q1 FY19 results under ASC 605 | ||||||||||
REVENUE | ||||||||||||
Products | $ | 324 | $ | 30 | $ | 294 | ||||||
Services | 414 | 20 | 394 | |||||||||
738 | 50 | 688 | ||||||||||
COSTS | ||||||||||||
Products: | ||||||||||||
Costs | 115 | 6 | 109 | |||||||||
Amortization of technology intangible assets | 43 | — | 43 | |||||||||
Services | 173 | 6 | 167 | |||||||||
331 | 12 | 319 | ||||||||||
GROSS PROFIT | 407 | 38 | 369 | |||||||||
OPERATING EXPENSES | ||||||||||||
Selling, general and administrative | 257 | (8 | ) | 265 | ||||||||
Research and development | 53 | — | 53 | |||||||||
Amortization of intangible assets | 40 | — | 40 | |||||||||
Restructuring charges, net | 7 | — | 7 | |||||||||
357 | (8 | ) | 365 | |||||||||
OPERATING INCOME | $ | 50 | $ | 46 | $ | 4 |