Nokia Corporation (NOK - Free Report) sold its Gainspeed portfolio along with all supporting technology and assets to Vecima Networks. Headquartered in Victoria, Canada, Vecima holds a leading position in developing integrated hardware and scalable software solutions for broadband access, content delivery and telematics. Financial terms of the transaction were not disclosed by the parties.
According to the deal, the technology and product portfolio will be integrated with Vecima’s existing Entra Distributed Access product suite. Nokia’s employees associated with these key technologies will transition to Vecima. Nokia intends to maintain an ongoing business relationship with Vecima that includes enabling technologies to address unified cable access opportunities.
Nokia’s Gainspeed cable access portfolio is perfectly aligned with Vecima’s Entra family, which addresses the shift to cable’s 10G platform and comprises Distributed Access Architecture and 10G-Ethernet Passive Optical Network. The company, however, will retain its cable-related products and solutions. This includes mobile, routing, transport, fiber and fixed wireless access technology as well as network operations and customer experience-related solutions.
Meanwhile, the Finland-based telecom equipment maker is making progress in its Mobile Access business while improving cash generation. The company aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments in 2020. Nokia is witnessing healthy underlying momentum in its focus areas of software and enterprise, which augurs well for its licensing business.
The company is positioned to benefit from copper and fiber deployments of passive optical networking. It is the only global supplier committed to O-RAN with commercial 5G Cloud-RAN networks. Nokia also expanded its IP routing business into the data center market. The company intends to accelerate strategy execution, sharpen customer focus and reduce long-term costs.
Nokia has a long-term earnings growth expectation of 15.6% compared with 15.1% of the industry. The stock has rallied 37.5% compared with the industry’s growth of 30.6% in the past three months.
Currently, Nokia carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
Some other top-ranked stocks in the broader industry are Turtle Beach Corporation (HEAR - Free Report) , Plantronics, Inc. (PLT - Free Report) and Clearfield, Inc. (CLFD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter earnings surprise of 41%, on average.
Plantronics has a trailing four-quarter earnings surprise of 540%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Clearfield has a trailing four-quarter earnings surprise of 45.6%, on average. The company’s earnings topped the consensus estimate in two of the last four quarters.
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