Avaya reported financial results for the first fiscal quarter ended December 31, 2014. Total revenue was $1,079 million, down $47 million compared to the prior quarter.
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On a year over year basis revenue was down $52 million compared to the first quarter of fiscal 2014. After adjusting for fluctuations in foreign exchange rates, revenue was down 3 percent sequentially and year-over-year, in line with historical quarterly sequential patterns.
For the quarter, adjusted EBITDA was $239 million which compares to adjusted EBITDA of $253 million for the prior quarter and $237 million for the first quarter of fiscal 2014. GAAP operating income was $104 million and non-GAAP operating income was $193 million which compares to non-GAAP operating income of $212 million for the prior quarter and $193 million for the first quarter of fiscal 2014.
The company was free cash flow positive for the quarter, with cash and cash equivalents totaling $328 million as of December 31, 2014.
Product bookings were up year-over-year, while product book-to-bill was below 1.0, consistent with typical first fiscal quarter patterns.
The total future contracted value for private cloud and managed services increased 20 percent from the first quarter of fiscal 2014, ending the quarter at over $800 million.
Revenue of $1,079 million, down by $47 million when compared to the prior quarter, of which $13 million was due to exchange rate fluctuations, and also down by $52 million when compared to the first quarter of fiscal 2014, of which $19 million was due to exchange rate fluctuations.
Gross margin 59.1% compared to 58.2% for the prior quarter and 56.6% for the first quarter of fiscal 2014.
Non-GAAP gross margin was 60.1% compared to 59.7% for the prior quarter and 58.1% for the first quarter of fiscal 2014.
Operating income was $104 million which compares to operating income of $62 million for the prior quarter and operating income of $87 million for the first quarter of fiscal 2014.
Non-GAAP operating income was $193 million compared to non-GAAP operating income of $212 million for the prior quarter and $193 million for the first quarter of fiscal 2014.
Adjusted EBITDA was $239 million or 22.2% of revenue compared to $253 million or 22.5% of revenue for the prior quarter and $237 million or 21% of revenue for the first quarter of fiscal 2014 ■