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Ciena to Buy DonRiver to Boost Blue Planet Software Strategy
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Ciena Corporation (CIEN - Free Report) recently announced that it has inked a definitive agreement to acquire DonRiver for an undisclosed amount. DonRiver is a privately-owned software company specialized in federated network and service inventory management systems within Operational Support Systems (OSS) environment. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close during Ciena’s fourth-quarter fiscal 2018.
The strategic move will involve DonRiver’s OSS software, integration and consulting experts. The deal will likely bring new capabilities to Ciena’s Blue Planet software and services portfolio, which in turn, will boost its ability to deliver on Adaptive Network vision through intelligent, closed-loop automation. Notably, Blue Planet will be able to provide an inventory view of all elements across a provider’s network supported by the addition of DonRiver’s federated network and service inventory management systems.
Further, the DonRiver team of specialized OSS software, integration and consulting experts will complement and scale the Blue Planet organization to form a unique and specialized services group. The group will, in turn, be able to manage modernization projects across IT and network operations.
Ciena plans to help customers realize the full benefits of network automation by helping them move away from highly complex and fragmented OSS environments to those that accurately reflect the real-time state and utilization of network resources.
The latest buyout will help Ciena accelerate its software strategy and contribute toward its long-term financial goal of growing Blue Planet and associated services business. The expansion of Blue Planet software business and network automation capabilities will provide the company competitive differentiation and improve its profitability.
Over the past three months, shares of Ciena have gained 28.6% compared with 17.6% growth for the industry.
Ciena currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader industry include Ribbon Communications Inc. (RBBN - Free Report) , Clearfield, Inc. (CLFD - Free Report) and QUALCOMM Incorporated (QCOM - Free Report) . While Ribbon Communications sports a Zacks Rank #1 (Strong Buy), Clearfield and QUALCOMM carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ribbon Communications has a long-term earnings growth expectation of 12%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 168.1%.
Clearfield beat earnings estimates in each of the trailing four quarters, the average surprise being 52.8%.
QUALCOMM has a long-term earnings growth expectation of 10.9%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 19.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Ciena to Buy DonRiver to Boost Blue Planet Software Strategy
Ciena Corporation (CIEN - Free Report) recently announced that it has inked a definitive agreement to acquire DonRiver for an undisclosed amount. DonRiver is a privately-owned software company specialized in federated network and service inventory management systems within Operational Support Systems (OSS) environment. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close during Ciena’s fourth-quarter fiscal 2018.
The strategic move will involve DonRiver’s OSS software, integration and consulting experts. The deal will likely bring new capabilities to Ciena’s Blue Planet software and services portfolio, which in turn, will boost its ability to deliver on Adaptive Network vision through intelligent, closed-loop automation. Notably, Blue Planet will be able to provide an inventory view of all elements across a provider’s network supported by the addition of DonRiver’s federated network and service inventory management systems.
Further, the DonRiver team of specialized OSS software, integration and consulting experts will complement and scale the Blue Planet organization to form a unique and specialized services group. The group will, in turn, be able to manage modernization projects across IT and network operations.
Ciena plans to help customers realize the full benefits of network automation by helping them move away from highly complex and fragmented OSS environments to those that accurately reflect the real-time state and utilization of network resources.
The latest buyout will help Ciena accelerate its software strategy and contribute toward its long-term financial goal of growing Blue Planet and associated services business. The expansion of Blue Planet software business and network automation capabilities will provide the company competitive differentiation and improve its profitability.
Over the past three months, shares of Ciena have gained 28.6% compared with 17.6% growth for the industry.
Ciena currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader industry include Ribbon Communications Inc. (RBBN - Free Report) , Clearfield, Inc. (CLFD - Free Report) and QUALCOMM Incorporated (QCOM - Free Report) . While Ribbon Communications sports a Zacks Rank #1 (Strong Buy), Clearfield and QUALCOMM carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ribbon Communications has a long-term earnings growth expectation of 12%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 168.1%.
Clearfield beat earnings estimates in each of the trailing four quarters, the average surprise being 52.8%.
QUALCOMM has a long-term earnings growth expectation of 10.9%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 19.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>