Viavi Solutions Inc. ( VIAV Quick Quote VIAV - Free Report) recently inked a technology partnership with a leading China-based manufacturer of biometric and infrared cut off filters — Hubei W-OLF Photoelectric Technology. The precision photoelectric film components distributor will leverage Viavi’s proprietary low angle shift (LAS) filters. The alliance is likely to fortify Viavi’s Optical Security and Performance Products segment, on the back of its technology prowess and accretive customer base. Shares of Viavi have inched up slightly to close at $13.21 as of Aug 28, instilling optimistic investor sentiments on the news. Recognized as a forerunner in the field of 3D sensing technology, Viavi offers high-performance thin film optical coatings that are used in anti-counterfeiting, 3D sensing, electronics, automotive, defense and instrumentation markets. The 3D sensing optical filters utilizes proprietary printing platform for consumer-electronics markets. They are also used in smartphones for facial recognition biometric authentication. It is worth mentioning that optical filters and sensors installed in autonomous vehicles and IoT devices offer lucrative growth opportunities for the company. As part of the collaboration, the China-based company will capitalize on Viavi’s advanced LAS filters to expand its portfolio of 3D sensing applications, thereby creating a win-win situation for both the companies. Viavi’s LAS filters are better known for enhancing the signal-to-noise ratio of various devices while delivering best-in-class customer experience. Markedly, the 3D sensing filters has reinforced Viavi’s operational and technical strengths. As a result, the company emerged as a leader in thin film optical coatings across global markets. Details of this licensing agreement have not yet been disclosed. Few days back, Viavi acquired a France-based network monitoring solutions provider — Expandium — for an undisclosed amount. Reportedly, the acquisition will enable Viavi to help carriers move away from proprietary hardware to software-defined services running on off-the-shelf servers, making it more dynamic and evolving according to the changing demand patterns. This, in turn, will help address the coronavirus-induced social-distancing norms by gradually replacing hardware-based solutions with containerized virtual machines. Viavi will also gain cloud-native and 5G-ready mobile core assurance technologies of Expandium, which are likely to add value to its virtualized solution offerings. The San Jose, CA-based company boasts a comprehensive product portfolio of fiber testing products and state-of-the-art leakage solutions that offers end-to-end network visibility and analytics. Given its product depth, Viavi’s solutions are well positioned to meet the dynamic industry trends. Impressively, with the industry’s complete range of fiber test solutions, Viavi reduces the complexity around new network architectures and ensures the delivery of high-speed services and applications to enterprises, government and network equipment manufacturers. Further, strength in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets is likely to boost its revenues in the long run. Shares of Viavi have gained 7.3% compared with the industry’s growth of 13.5% in the past three months. Viavi currently has a Zacks Rank #3 (Hold). Some other better-ranked stocks in the industry are Harmonic Inc. ( HLIT Quick Quote HLIT - Free Report) , Acacia Communications, Inc. ( ACIA Quick Quote ACIA - Free Report) and Ooma, Inc. ( OOMA Quick Quote OOMA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Harmonic has a trailing four-quarter earnings surprise of 4.4%, on average. Acacia has a trailing four-quarter earnings surprise of 17%, on average. Ooma has a trailing four-quarter earnings surprise of 238.9%, on average. 5 Stocks Set to Double
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