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Ciena to Support Nationwide Optical Network With Windstream

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Ciena Corporation (CIEN - Free Report) teamed up with Windstream, a leading communications services provider, to build a new nationwide network. The National Converged Optical Network (NCON) will leverage Ciena’s avant-garde portfolio of optical networking solutions to enhance network capacity and reinforce digital disruption, while addressing the accretive networking demands of customers.

Based in Little Rock, AR, Windstream provides residential broadband and digital TV services to various customers with utmost security and compliance. The company also offers streamlined connectivity solutions to optimize performance with adequate bandwidth and reliability required to support IT transformation. Windstream’s NCON will connect Tier 1, 2 and 3 cities with U.S.-based cable landing stations and data centers to deploy a next-gen network infrastructure with reduced operational costs and high-speed connectivity.

It is worth mentioning that NCON will capitalize on Ciena’s Waveserver 5 modular platform and 6500 Reconfigurable Line System (RLS) to achieve enhanced network. Notably, the Waveserver 5 modular platform, which is powered by WaveLogic 5 Extreme, is a coherent optical solution that enables ubiquitous deployment of seamless optical networking with an unrivalled single wavelength capacity of 800G. This maximizes operational efficiencies as well as encourages cost savings and service agility in long-haul infrastructure.

Ciena’s 6500 RLS has been designed to operate in multi-vendor environments with faster deployment options. The new-age long-haul network is a compact connectivity solution that improves scalability and addresses unpredictable traffic requirements with minimal footprint. It optimizes C&L-band architecture and solves engineering challenges, thereby improving end-customers’ experience. Windstream will also leverage Ciena’s Manage, Control and Plan (MCP) domain controller and Liquid Spectrum predictive analysis. MCP is a cloud-native platform that accelerates end-to-end operational workflows through SDN software control and automation. Liquid Spectrum will benefit Windstream with simplified capacity planning, while providing network efficiency on a real-time basis.

Backed by seamless software control and open connectivity, the NCON architecture will assist customers with best-in-class capabilities of remote working and cloud connectivity. The network will support Windstream’s enterprise, wholesale and SMB customers with a modernized optical networking infrastructure that will efficiently scale optimal capacity by re-routing network traffic based on available resources. The core network is expected to be deployed in the third quarter of 2020. Ciena will likely be a perfect choice for Windstream to accelerate nationwide network transformation with its industry-leading portfolio of intelligent optical networking solutions. This will strengthen the company’s global scale of operations and technology leadership.

Ciena is confident about its business model and is likely to benefit from growing demand for packet-optical transport and switching products, integrated network as well as service management software. It is investing in the data and optical fiber market to capitalize on the tremendous growth opportunities offered by bandwidth demand from network service providers, while augmenting its Packet Networking portfolio to capitalize on 5G. It is also focused on the expansion of its Web Scale IT Architecture in the enterprise market by launching products like chipsets, metro architecture and mobile backhaul solutions.

Ciena has a long-term earnings growth expectation of 16%. The company topped earnings estimates thrice in the last four quarters. It has a trailing four-quarter earnings surprise of 25.6%, on average. The stock has returned 40.6% compared with the industry’s growth of 40.2% in the past year.



Ciena currently has a Zacks Rank #3 (Hold).

Some other better-ranked stocks in the broader industry are Calix, Inc. (CALX - Free Report) , Cambium Networks Corporation (CMBM - Free Report) and Turtle Beach Corporation (HEAR - Free Report) . While Calix sports a Zacks Rank #1 (Strong Buy), Cambium and Turtle Beach carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Calix’s bottom line surpassed the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter earnings surprise of 59.7%, on average.

Cambium’s bottom line surpassed the Zacks Consensus Estimate thrice in the last four quarters. The company has a trailing four-quarter earnings surprise of 111.4%, on average.

Turtle Beach’s bottom line surpassed the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter earnings surprise of 41%, on average.

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