IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
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41

Avaya

(NYSE: AV)

USA

The 3.1 million soccer fans attending the FIFA 2006 World Cup games in Germany might not have heard of U.S. telecom equipment maker Avaya, but they won't help but take notice of the up-and-comer. A Lucent spinoff, Avaya built the combined Internet and phone network for the games and spent $100 million as a long-term sponsor. Just six years on its own, Avaya, which pulled $963 million in profits on just over $5 billion in sales last year, is in prime position snap up competitors as the industry consolidates. The company is the leading player in the emerging market that combines voice and data networks, providing the hardware, software, and maintaining IT telephony systems across the globe. German soccer fans, in fact, may be hearing a lot more of Avaya after the games. The company is rumored to be in talks to buy its significantly bigger and more diverse rival in Germany, Siemens.

Company Info

2005 Rank

Not Ranked

Sales*
($ Millions)

5,019.0

Sales Growth
(over prev. year)

12 %

Profits*
($ Millions)

963.0

Return on Equity

50.4 %

Total Return on Sales (12-mo.)

29.1

Share Price
As of 5/31/06

11.81

CURRENT
MARKET INFO

NYSE: AV

No. of Employees

18,107

Industry Communications Equipment
COMPANY WEB SITE >
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Avaya provides communication systems, applications, and services. The company operates in two segments, Global Communications Solutions and Avaya Global Services. The Global Communications Solutions segment provides Internet protocol (IP) telephony offerings, such as Communication Manager, a voice application software; media servers; media gateways; a suite of management tools to support voice and data network infrastructures; Avaya Extension to Cellular solution; Session Initiation Protocol enablement services solution; and an Application Enablement platform that allows enterprises and call centers to combine various applications to the telephony and call center infrastructure. It also offers enterprise communications applications; hardware systems and software applications for customer contact centers; unified communications; a line of digital and IP devices and in-building wireless handsets, and software that extend the reach of enterprise communications by residing on alternative devices. In addition, the segment provides Communication Server Integral, traditional voice systems, and Avaya IP Office to deliver converged voice and data communications solutions. The Avaya Global Services segment provides business communications strategy development and planning, applications design and integration, migrating to IP, securing communications networks and ensuring continuity, day-to-day communications support and network monitoring, and managing business communications solutions. The company serves enterprises operating in financial, manufacturing, media and communications, professional services, health care, education, and governmental industries through distributors, dealers, value-added resellers, telecommunications service providers and system integrators worldwide. Avaya was incorporated under the name Lucent EN in February, 2000, and changed its name to Avaya in June, 2000. The company is headquartered in Basking Ridge, N.J.


Data provided by Capital IQ
 
Donald K. Peterson

Donald K. Peterson, 55

President, Chief Executive Officer and Chairman

Total Compensation

$1,239,737

Value of Options

$12,089,605

Worcester Polytechnic Institute - BS, Dartmouth - MBA

Donald Peterson has been president and chief executive officer of Avaya since September, 2000, and has been its chairman since January, 2002. Peterson served as an executive vice-president and CEO of Lucent Technologies' enterprise networks group from March, 2000, until September, 2000. He served as executive vice-president and chief financial officer for Lucent from February, 1996, to March, 2000, following his employment with AT&T. Starting in 1995, he served as chief financial officer of AT&T's communications services group. He began his career in 1973 as a senior analyst at State Mutual Life Assurance in Worcester, Mass. He joined Nortel Networks in 1976 and advanced through a number of financial, sales, and general management positions in the U.S. and Canada, including CFO from 1986-87. In 1994, he was appointed president of Nortel Communications Systems in Nashville. Peterson served as vice-chairman of Avaya from September, 2000, to January, 2002. Peterson has been a director of Avaya since September, 2000. He served as a director of Reynolds & Reynolds from 1998 to February, 2005. He currently serves as chairman of the Worcester Polytechnic Institute board of trustees. He is a member of the Council on Foreign Relations, the World Economic Forum, the board of overseers of the Amos Tuck School of Business Administration, the board of Teachers Insurance & Annuity Association of America, and is a trustee for the Committee for Economic Development. He attended Worcester Polytechnic Institute, earning his bachelor's of science degree in mechanical engineering in 1971. He was granted an MBA from Dartmouth in 1973.



Executive Data provided by Capital IQ