Calix, Inc. (CALX - Free Report) recently collaborated with a leading electric cooperative — Cumberland Connect — to deploy its avant-garde range of networking solutions for seamless broadband connectivity in Tennessee. The partnership will aim to capitalize on Calix Intelligent Access EDGE platform to establish a robust network infrastructure to deliver best-in-class customer experience to the unserved communities in the region. Impressively, shares of Calix increased 7.4% to close at $21.92 as on Aug 28, thereby reinforcing positive investor sentiments on the news.
As a subsidiary of the Cumberland Electric Member Corporation (“CEMC”), Cumberland Connect provides high-speed, reliable Internet, phone and video services to its members. The non-profit organization offers both business and residential services with state-of-the-art fiber optic network. With more than 80,000 members, CEMC supports fiber services with top-notch networking equipment like Wi-Fi 6 supported GigaSpire router. Apart from leveraging Intelligent Access EDGE platform, Cumberland Connect will also utilize Calix’s Revenue EDGE, Deployment Enablement and Remote Monitoring Services to install next-gen Fiber-to-the-home network for streamlined connectivity.
The Intelligent Access EDGE is an innovative solution that supports Calix with simplified network architecture. This enables service providers to automate their network operations and minimize operational costs, while boosting time-to-revenue capabilities. It is powered by the AXOS Services Management Connector (SMx) which is a cloud-ready software application for network management. The SMx simplifies network operations with reduced time-to-market for new service introductions. It automates the service lifecycle to improve the overall network experience for Cumberland Connect customers. The San Jose, CA-based company completed the end-to-end network integration which enhanced the functioning of fiber connections by 83%.
Equipped with cutting-edge technology, Calix’s Revenue EDGE platform delivers advanced analytics and enables service providers to offer customized solutions. Markedly, the solution is better known for opening up new avenues for revenue generation. Deployment Enablement Services minimize truck rolls to lower operational costs and streamline network implementation projects to accelerate the deployment of next-gen solutions. Meanwhile, Remote Monitoring Services reduce technician intervention by up to 90% and drives operational efficiency to enhance subscriber visibility. Notably, this partnership has enabled Cumberland Connect to gain more than 130 subscribers on a weekly basis.
Calix is well-positioned to benefit from customer base expansion and strong execution amid coronavirus-induced disruptions. The company is focused on providing the platforms that enable service providers to create services at a DevOps pace. In the second quarter, the company added 18 new customers from all segments of the market. Its near-term focus is on catering to the needs of service provider customers, while finding like-minded customers regardless of their type, size or location in the long term. Calix is committed to aligning investments to its strategy and maintaining strong discipline over operating expenses.
Shares of Calix have soared 264.7% compared with the industry’s growth of 57.9% in the past year.
Calix currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader industry are ADTRAN, Inc. (ADTN - Free Report) , Harmonic Inc. (HLIT - Free Report) and Acacia Communications, Inc. (ACIA - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ADTRAN has a trailing four-quarter earnings surprise of 50.2%, on average.
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.
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