Avaya cuts Q3 outlook, blames slow capital spending

SAN FRANCISCO: Communications equipment maker Avaya Inc. on Monday cut its
third-quarter revenue outlook, noting customers are holding back their capital
spending.

Avaya, a provider of voice and data networks, said it expected that
third-quarter revenues would be flat to moderately down from the second quarter
because customers concerned with corporate profits are hesitant to invest in
capital equipment and information technology.

The company repeated it saw a "modest increase" in fiscal
third-quarter earnings from the second quarter. Basking Ridge, New Jersey-based
Avaya, a former unit of Lucent Technologies Inc., said the increase in the
earnings per share would be subject to the final mix in revenues in the third
quarter.

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