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VIAV to Boost SKY Perfect JSAT's Satellite Testing Lab: Stock to Gain?

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Viavi Solutions Inc. (VIAV - Free Report) and Rohde & Schwarz recently announced that SKY Perfect JSAT Corporation, the largest multichannel pay TV broadcast services provider in Japan, has selected their joint Non-Terrestrial Network (NTN) testbed to support its Universal NTN Innovation Lab (NTN Lab). Launched in November 2024, the NTN Lab is designed as a high-tech environment for the testing and development of NTN technology that integrates both Geosynchronous Earth Orbit (GEO) satellites and non-GEO satellites, along with High-Altitude Platform Stations to create a dynamic and automatic routing system.

Digging Deep Into VIAV-SKY Collaboration

As part of this deal, Viavi has delivered an advanced NTN testbed that covers satellite orbits across Low Earth Orbit, Medium Earth Orbit and GEO. This setup will facilitate comprehensive testing, including the validation of end-to-end connectivity, performance metrics and quality of service across various user equipment types. It also involves measuring end-user application performance while addressing challenges such as distance, speed, mobility and the inherent characteristics of satellite communications. 

Key equipment used in the NTN testbed includes the VIAVI TM500-AS2, a compact version of its flagship platform designed for base station testing, and Rohde & Schwarz’s cutting-edge CMX500 mobile communication network tester, which supports advanced channel emulation and fading profiles. The TeraVM Real Data Applications engine from Viavi will also play a crucial role in simulating realistic application and traffic scenarios to assess system performance under various conditions. In the early stages, the NTN Lab will concentrate on GEO satellites operating in the Ku-band, facilitating high-capacity, wide-bandwidth communications.

Will This Deal Aid VIAV’s Prospects?

With the industry’s complete range of fiber test solutions, the San Jose-based company reduces the complexity around new network architectures. Viavi ensures the delivery of high-speed services and applications to enterprises, government and network equipment manufacturers. Strength in wireless & fiber testing, 3D sensing products, optical transport, Ethernet, broadband access, video testing and storage network testing markets are likely to augment the company’s revenues in the long run.

The SKY Perfect JSAT deal is likely to propel VIAV stock on the back of incremental revenue generation from state-of-the-art product innovations. The agreement is also expected to strengthen Viavi’s position as a leading provider of network test, monitoring and service enablement solutions in the region.

VIAV’s Stock Price Performance

Shares of Viavi have gained 24% over the past year compared with the industry’s growth of 83.6%.

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VIAV’s Zacks Rank and Key Picks

Viavi currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Celestica Inc. (CLS - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 10.64%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. 

InterDigital, Inc. (IDCC - Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. 

Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

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