Avaya reported financial results for the third fiscal quarter ended June 30, 2017. Total revenue for the third quarter was USD 803 million, down USD 1 million compared to the prior quarter and down USD 79 million year-over-year (y-o-y) primarily as a result of lower demand for products and services primarily due to extended procurement cycles resulting from the chapter 11 filing. Non-GAAP gross margin was 61.6 percent, which compares to 60.6 percent for the prior quarter and 62.4 percent for the third quarter of fiscal 2016. GAAP operating loss was USD 44 million, inclusive of USD 52 million of goodwill impairment and USD 53 million of costs in connection with certain legal matters, which compares to operating income of USD 64 million for the prior quarter and USD 58 million for the third quarter of fiscal 2016.
Non-GAAP operating income was USD 156 million which compares to USD 148 million for the prior quarter and USD 180 million for the third quarter of fiscal 2016. For the third quarter, adjusted EBITDA was USD 204 million or 25.4 percent of revenue, a record percentage of revenue for a third fiscal quarter, and compares to adjusted EBITDA of USD 199 million for the prior quarter and USD 223 million for the third quarter of fiscal 2016.
Cash provided by operating activities was USD 72 million for the third fiscal quarter 2017, compared to USD 97 million during the second fiscal quarter 2017 and USD 23 cash used from operations during the third fiscal quarter 2016. Cash and cash equivalents totaled USD 729 million as of June 30, 2017.