Don’t worry, it’s business as usual. The company needed to reduce debt, secure new financing, and borrow more money to grow.
According to Aspect’s press release and another report, $320 million of debt is to be eliminated. With revenue of $400 million, that’s a lot of debt to be carrying around. Looks like the balance sheet finally buckled under pressure.
Aspect is by far the most Microsoft-centric contact center software company, stemming from an investment by the software giant around 2008. The companies have close ties, and Aspect’s products integrate well with Microsoft’s.
It was pretty exciting to hear Aspect buyout Voxeo in 2013, but now it appears that the company has difficulties pivoting to cloud-based solutions to catch up with competitors. The money spent on acquiring Voxeo was 50% of the debt, in retrospect a gamble that may not have played out too well. Jonathan Taylor, a cofounder of Voxeo, chimed in via LinkedIn on his thoughts of how Aspect got itself in trouble.
Let’s hope the company will get over this bump on the road and emerge even stronger financially.