Ribbon (RBBN) Solution to Power DoD's Communications Network

Ribbon Communications Inc. RBBN recently announced that its Session Border Controller 5400 (SBC 5400) has been accredited by the U.S. Department of Defense (“DoD”) and is currently available for deployment. The Westford, MA-based company, which has a history of delivering carrier-grade solutions in the DoD communications network, continues to benefit from its investments in software.

Ribbon’s SBC 5400 is designed to deliver high performance and scale while protecting large enterprise networks. The solution allows the DoD and its agencies to protect critical communications infrastructure from cyber-attacks using the latest encryption technology. The company is upgrading its portfolio of Joint Interoperability Test Command (JITC)-certified solutions with key software upgrades to the Application Server and G5 Media Gateway.

The DoD has leveraged Ribbon’s Application Server for one of the largest VoIP deployments. Ribbon is committed to helping improve DoD’s communications network with its advanced real-time communications and security solutions. The SBC 5400 provides complete security through encryption, Distributed Denial of Service attack detection and dynamic black-listing of rogue endpoints. It provides large enterprises with support for high scale media and transcoding sessions while providing support for multi-media traffic.

On Mar 3, Ribbon announced the completion of merger with ECI Telecom. In addition to enhancing its solutions portfolio into adjacent markets, the merger progresses Ribbon’s strategy of expanding into the service provider 5G data domain with bundled network analytics, intelligence and security offerings. It allows Ribbon to broaden existing customer offerings with ECI’s industry-leading packet optical transport solutions.

The integration aids Ribbon to increase its scale, total addressable market and global footprint in service provider networks, enterprises and critical infrastructure companies. It helps Ribbon to expand its relationships with fixed and mobile service providers, while enabling it to capitalize on high-growth 5G market.

The Zacks Consensus Estimate for the company’s current-year earnings has been revised 17.3% upward over the past 60 days to 61 cents. The stock is currently trading with a forward P/E of 3.54X. Shares of Ribbon have lost 19.4% compared with 34.5% decline recorded by the industry in the past three months.

Ribbon currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A.

A few other top-ranked stocks in the broader industry are PCTEL, Inc. PCTI, Motorola Solutions, Inc. MSI and Qualcomm Incorporated QCOM. While PCTEL sports a Zacks Rank #1 (Strong Buy), Motorola and Qualcomm carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PCTEL surpassed earnings estimates in the trailing four quarters, the beat being 108.9%, on average.

Motorola topped earnings estimates in the trailing four quarters, the surprise being 6.6%, on average.

Qualcomm surpassed earnings estimates in the trailing four quarters, the beat being 10%, on average.

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