Yahoo Finance Ciena's (CIEN) WaveLogic 5 Extreme Used by Conterra Networks
Ciena CIEN recently announced that Conterra Networks will be implementing its premium WaveLogic 5 Extreme (WL5e) to supply 400Gb/s wavelength services to network clients in Texas, North Carolina and Louisiana.
Conterra Networks has been at the forefront of designing, building and operating cutting-edge telecom networks that cater to a wide range of industries, including education, healthcare, enterprise and carrier services across the United States. Its commitment to innovation and excellence has positioned it as a national leader in fiber-optic network-based infrastructure and services.
Ciena’s innovative solution plays an integral part in the business of its premium clients like Conterra Networks. The network is managed via Ciena's Navigator Network Control Suite, offering end-to-end visibility and assurance from a single control point, ensuring seamless operations and optimal performance, added Ciena.
Ciena is a global provider of networking systems, services and software. Its WL5e is embedded with updated features, such as providing a minimum of 50% more capacity per wavelength and a 30% increase in fiber capacity compared to previous technologies, highlights CIEN. Further, the company added that It is instrumental in lowering footprint and energy usage by more than 50% of prior-generation technologies. Along with WL5e, products such as 6500 and Waveserver are available.
Ciena continues to drive growth with acquisitions and innovative product mix. Ciena teamed up with Toshiba to showcase the validity of quantum keys generated by Toshiba QKD devices to encrypt data, leveraging Ciena’s Waveserver 5 solution.
Also, its GeoMesh Extreme submarine network solution was selected by SEA-ME-WE 4 (South East Asia – Middle East – Western Europe 4) to support the increasing demand for seamless connectivity across the circuit.
However, volatile macro conditions are weighing on its performance. Order volumes are decreasing in several overseas markets, due to which management anticipates revenues in the range of $4 billion-$4.3 billion for fiscal 2024 compared with the fiscal 2023 figure of $4.38 billion. Intense competition and customer concentration remain additional headwinds. In the first quarter, two customers represented about 26.5% of total revenues.
CIEN currently carries a Zacks Rank #5 (Strong Sell). The stock has gained 10.2% compared with the sub-industry’s growth of 9.8% in the past year.
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Key Picks
Arista Networks, Inc. ANET, sporting a Zacks Rank #1, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience.
Arista has a long-term earnings growth expectation of 15.7% and delivered an earnings surprise of 15.4%, on average, in the trailing four quarters.
Ubiquiti Inc. UI, carrying a Zacks Rank #2 (Buy) at present, is a key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.
UI boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.
NVIDIA Corporation NVDA, sporting a Zacks Rank #1, is another key pick in the broader industry. It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
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