Yahoo Finance Viasat (VSAT) and Microsoft to Boost Satellite Connectivity
Viasat, Inc. VSAT recently collaborated with Microsoft Corporation MSFT and launched the global Viasat Real-Time Earth (RTE) ground service in the Azure marketplace. The service integrates five RTE Antenna sites with Microsoft’s Azure orbital to support satellite operators with high-speed connectivity.
Microsoft, one of the largest broad-based technology providers, also ensures support of the Azure cloud platform and private WAN (wide area network) that will provide secure end-to-end connectivity and greater resiliency.
Faster downlink rates improve satellite-to-ground station communication. There is a rising demand for cost-efficient higher downlink services among commercial satellite operators. The RTE antenna systems offer fully managed, cost-effective Ground-Station-as-a-Service (GSaaS) capabilities that provide fast, reliable connectivity to customers, reduce downlink time and enable the transfer of large amounts of data in real time. It enables satellite operators’ greater flexibility, enabling them to use S-, X- and Ka-band spectrums per their data requirements.
Remote sensing missions require greater bandwidth connectivity. Viasat’s extensive worldwide network of Ka-band antennas ensures 3x bandwidth connectivity compared with conventional X-band for remote-sensing applications. The recent innovation highlights Viasat’s commitment to delivering optimum service for the space community. The collaboration with Microsoft is likely to strengthen VSAT’s portfolio and ensure further business expansion.
Viasat’s Satellite Services business is progressing well with key metrics, including ARPU (average revenue per user) and revenues, showing impressive growth. ARPU is growing on the back of a solid retail distribution network, which accounts for a rising proportion of high-value and high bandwidth subscriber base. The growing adoption of in-flight Wi-Fi services in commercial aircraft is conducive to business growth.
Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. It has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation. The company is optimistic that mobile broadband will act as a profit churner and boost in-flight connectivity (IFC) revenues.
Viasat is ramping up investments in developing its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. These satellites will be capable of covering one-third of the world, including all Americas. The second ViaSat-3 will cover Europe, the Middle East and Africa region. The ViaSat-3 platform will help to form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. In a nutshell, Viasat has garnered enough economics of scale and scope to serve vast emerging markets in South America, Africa, the Middle East and Western Asia.
The stock has lost 23.9% in the past year compared with the industry's fall of 10.5%.
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Viasat currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Juniper Networks, Inc. JNPR, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 1.55%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.
Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. The company caters to the networking needs of enterprises, public sector organizations and service providers across the globe
Arista Networks, Inc. ANET, sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.85 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.
It continues 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. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.
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