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Ciena (CIEN) Spurs Trans-Atlantic Channels With Aqua Comms Tie-Up

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Ciena Corporation (CIEN - Free Report) recently announced its partnership with a major communications provider company — Aqua Comms — to modernize the latter’s Trans-Atlantic submarine cable routes with the best-in-class capabilities of AI (artificial intelligence). Also, Ciena will upgrade two subsea networks — AEC-1 (America Europe Connect-1) and AEC-2 (America Europe Connect-2) — by leveraging its GeoMesh Extreme submarine network solution.

Of late, service providers are transitioning toward a more adaptive network that harnesses state-of-the-art technological innovation for customizable service delivery while catering to dynamic customer preferences with smarter analytics and simplified operations. Hence, the latest move is expected to be highly beneficial for Aqua Comms.

Headquartered in Ireland, Aqua Comms specializes in the delivery of low-latency and scalable connectivity, focusing on its continued investments in subsea cables to ensure optimum customer experience with seamless operations. Notably, the company supports the crucial requirements of web-scale providers that form the crux of today’s global cloud industry.

Apart from web-scale providers, Aqua Comms caters to the connectivity needs of various cloud-based networks, IT companies and data centers with innovative services. In addition to AEC-1 and AEC-2, it owns CC-1 (CeltixConnect-1), CC-2 (CeltixConnect-2) and North Sea Connect cable routes, thereby establishing a reliable network infrastructure connecting key markets.

Markedly, the modernization initiative is primarily aimed at enhancing Aqua Comms’ submarine network capacity while meeting the peak traffic and digital connectivity requirements between the United States and Europe.

Ciena’s GeoMesh Extreme submarine network solution is an integral part of WaveLogic 5 Extreme (WL5e) coherent optics. The WL5e technology enables ubiquitous deployment of seamless optical networking with an unrivalled programmable capacity of 800G. Impressively, it is the fifth generation of coherent optical solutions that encourages cost savings and service agility in long haul infrastructure and submarine applications.

It is worth mentioning that submarine networks manage more than 99% of the world’s intercontinental electronic communications traffic and Ciena’s GeoMesh Extreme aptly serves the purpose with greater network velocity, along with AI and software intelligence.

Apart from the deployment of GeoMesh Extreme in the upgraded network, the partnership enables Aqua Comms to accelerate its end-to-end operational workflows through software-defined control and solve network complexities. This was made possible with the help of Ciena’s Manage, Control and Plan domain controller and Insights Service. That said, the Hanover, MD-based company is likely to be an ideal partner for Aqua Comms to bolster network transformation with its industry-leading portfolio of intelligent optical networking solutions supported by better implementation capabilities.

Markedly, Ciena is confident about its business model and is expected to benefit from growing demand for packet-optical transport and switching products 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 boosting its Packet Networking portfolio to capitalize on 5G.

Fueled by its technology leadership, it is 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 delivered a trailing four-quarter positive earnings surprise of 21.5%, on average. The stock has returned 37.2% compared with the industry’s growth of 37.3% in the past six months.

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

Some better-ranked stocks in the broader industry are Aviat Networks, Inc. (AVNW - Free Report) , Ubiquiti Inc. (UI - Free Report) and Clearfield, Inc. (CLFD - Free Report) . While Aviat Networks and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Clearfield carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat Networks delivered a trailing four-quarter positive earnings surprise of 61.7%, on average.

Ubiquiti delivered a trailing four-quarter positive earnings surprise of 37.1%, on average.

Clearfield delivered a trailing four-quarter positive earnings surprise of 62.6%, on average.

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