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Ciena's (CIEN) Packet-Optical Solutions Adopted by GTS Telecom

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Ciena Corporation’s (CIEN - Free Report) 6500 Packet-Optical Platforms is being utilized by Romania-based GTS Telecom to upgrade its network from 10G to 100G across the country amid increasing capacity demand.

GTS Telecom will be able to provide steady high-bandwidth connectivity across Romania by using WaveLogic coherent technology-powered 6500 Packet-Optical Platforms combined with flexible grid ROADMs (reconfigurable optical add/drop multiplexers). The telecom company will have the ability to upgrade the entire country-wide network to 200G, 400G and 800G.

The WaveLogic Encryption feature will aid GTS Telecom in integrating encryption services for customers in the public sector with heightened security requirements. GTS Telecom also will implement Ciena Services to execute remote service migration and commissioning.

Opportunities in the Telecom Space Augur Well

Ciena is a leading provider of optical networking equipment, software and services globally. The company benefits from increased network traffic, demand for bandwidth and the adoption of cloud architecture. Ciena’s focus on aiding carriers’ transition to next-generation networks places it within the fastest-growing segments of the telecom space.

In January 2022, Ciena coherent optical solutions were leveraged by India-based —Vodafone Idea Limited. The telecom operator uses Ciena’s 6500 packet-optical platform that runs on WaveLogic 5 Extreme solution for high speed 300G/400G services, which can be upgraded to 800G.

Prior to that, Ciena partnered with Gulf Bridge International to boost the latter’s Smart Network capacity and performance on the back of its WaveLogic 5 Extreme-powered GeoMesh Extreme solution. This will improve the capacity of GBI’s Smart Network by 10 Tb/s across its regional and global networks.

Ciena Corporation Price and Consensus

 

Ciena Corporation Price and Consensus

Ciena Corporation price-consensus-chart | Ciena Corporation Quote

 

In the last reported quarter, the company’s quarterly revenues soared 11.5% year over year to $844.4 million. The upside was driven by strength in Networking Platforms, Platform Software and Service and Blue Planet Automation Software and Services segments.

For the second quarter of fiscal 2022, the company expects revenues of $930-$970 million. The Zacks Consensus Estimate is pegged at $952.9 million. The company is slated to report fiscal second-quarter results on Jun 2, 2022.

The pandemic-triggered macroeconomic woes and industry-wide supply-chain disruptions are a concern for CIEN, which carries a Zacks Rank #3 (Hold). Shares of the company have gained 3.3% against the industry’s decline of 1.3%.

Stocks to Consider

A few better-ranked stocks from the broader technology sector worth consideration are InterDigital (IDCC - Free Report) , Flex (FLEX - Free Report) and Pure Storage (PSTG - Free Report) .  InterDigital sports a Zacks Rank #1 (Strong Buy) while Flex and Pure Storage carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Flex’s fiscal 2023 earnings is pegged at $2.16 per share, up 6.9% in the past 60 days. The long-term earnings growth rate is pegged at 14.9%.

Flex’s earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 21.1%. Shares of FLEX have declined 5.8% in the past year.

The Zacks Consensus Estimate for Pure Storage fiscal 2023 earnings is pegged at 86 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is 30.9%.

Pure Storage’s earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 99.2%. Shares of PSTG have gained 47.2% in the past year.

The Zacks Consensus Estimate for InterDigital 2022 earnings is pegged at $3.28 per share, up 5.1% in the past 60 days. IDCC’s long-term earnings growth rate is pegged at 15%.

InterDigital’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 141.1%. Shares of IDCC have lost 12.7% of their value in the past year.


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