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Ciena & REDIMadrid Collaborate on Next-Generation Data Transport
Read MoreHide Full Article
Key Takeaways
Ciena and REDIMadrid deploy QKD with the 6500 system, enabling quantum and DWDM traffic on one fiber.
CIEN sees demand surge from AI-driven traffic, boosting Systems and Interconnects opportunities.
Navigator Suite orders rose 30% in 1H 2025, supporting CIEN's 17% revenue growth outlook for fiscal 2026.
Ciena Corporation ((CIEN - Free Report) ) recently partnered with REDIMadrid, the research and higher education network of the Comunidad de Madrid, managed by IMDEA Software. The collaboration is aimed at advancing the End-to-End Quantum Secure Data Transport Project, a cutting-edge initiative that brings Quantum Key Distribution (“QKD”) into existing optical infrastructures.
The initiative employs Ciena’s 6500 photonic line system to enable a quantum channel to operate smoothly alongside existing Dense Wavelength Division Multiplexing (“DWDM”) traffic on the same fiber. This showcases the successful deployment of QKD technology over current optical fiber networks, advancing quantum-secure data transfer. Ciena’s innovation shifts the paradigm.
By providing spectral isolation between quantum and DWDM channels, Ciena allows both quantum and classical data traffic to coexist on the same fiber. This method not only reduces infrastructure costs but also accelerates the adoption of quantum-secure solutions without requiring a complete network overhaul.
The collaboration shows how customers can stay ahead of quantum computing threats by using CIEN’s photonic line systems to eliminate the need for extra fiber for quantum channels, and its Waveserver 5 encryption solutions that work with any QKD system and support Post-Quantum Cryptography. Ciena and REDIMadrid are also partnering with Axians, a specialist in digital and network infrastructures, to ensure smooth implementation and integration of the project.
Ciena Thrives on Cloud and Bandwidth Boom
Ciena is seeing positive signs in the market, such as increased customer spending driven by the rapid growth of AI applications. It continues to benefit from increased network traffic and demand for bandwidth, primarily due to the growing adoption of AI technology. Ciena’s Cloud and Service Provider clients are prioritizing network investments to support AI-related traffic growth, emphasizing long-term opportunities for its Systems and Interconnects divisions.
To take advantage of this, the company is focusing R&D efforts on Coherent Optical Systems, Interconnects, Coherent Routing, and solutions like DCOM, while reducing investments in residential broadband. Existing broadband products will still be sold and supported. Its Navigator Network Control Suite experienced over 30% year-over-year order growth in the first half of fiscal 2025, driven by its advanced, microservices-based features. Blue Planet plays a vital role in major provider projects, supporting digital transformation with AI and data-driven tools. Building on fiscal 2025 momentum, Ciena expects approximately 17% revenue growth in fiscal 2026, aligning with 2025 projections and reaching the high end of its three-year CAGR target a year early.
Increased network traffic, higher demand for bandwidth, and the adoption of cloud architectures remain key drivers of growth as the company aims to boost its profitability through a balanced mix of new and existing customers. Ciena’s portfolio, including WaveLogic, RLS, Navigator, and Interconnect Solutions, continues to be a recognized industry standard, with WaveLogic 6 and RLS providing an 18-24 month technology lead and a strong position to serve global AI network opportunities.
WaveLogic 6 Extreme is seeing strong market adoption, attracting customers who seek greater capacity while reducing space and power requirements in their networks. Ciena is currently the only provider offering a 1.6 terabit WAN solution and expects to maintain this leadership in next-generation optical technology for at least two years. The company is making progress with industry-first wins with cloud providers.
CIEN’s Zacks Rank & Stock Price Performance
Ciena currently carries a Zacks Rank #1 (Strong Buy). Shares of the company have risen 131.3% in the past year compared with the Zacks Communication-Components industry's growth of 82.4%.
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti invests significantly in research and development activities to develop innovative products and state-of-the-art technology, expanding its addressable market and staying at the cutting edge of networking technology. The company believes its new product pipeline will help increase average selling prices for high-performance, best-value products, thus boosting the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Headquartered in Carlsbad, CA, Viasat Inc. ((VSAT - Free Report) ) carries a Zacks Rank #2 (Buy). It designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. It provides high-bandwidth, high-performance communication solutions to the public, as well as to military, enterprise, and government agencies. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models.
InterDigital, Inc. ((IDCC - Free Report) ) currently carries a Zacks Rank #2. The company delivered an average earnings surprise of 54.27% in the trailing four quarters.
InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive significant value, considering the massive size of the market it licenses.
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Ciena & REDIMadrid Collaborate on Next-Generation Data Transport
Key Takeaways
Ciena Corporation ((CIEN - Free Report) ) recently partnered with REDIMadrid, the research and higher education network of the Comunidad de Madrid, managed by IMDEA Software. The collaboration is aimed at advancing the End-to-End Quantum Secure Data Transport Project, a cutting-edge initiative that brings Quantum Key Distribution (“QKD”) into existing optical infrastructures.
The initiative employs Ciena’s 6500 photonic line system to enable a quantum channel to operate smoothly alongside existing Dense Wavelength Division Multiplexing (“DWDM”) traffic on the same fiber. This showcases the successful deployment of QKD technology over current optical fiber networks, advancing quantum-secure data transfer. Ciena’s innovation shifts the paradigm.
By providing spectral isolation between quantum and DWDM channels, Ciena allows both quantum and classical data traffic to coexist on the same fiber. This method not only reduces infrastructure costs but also accelerates the adoption of quantum-secure solutions without requiring a complete network overhaul.
The collaboration shows how customers can stay ahead of quantum computing threats by using CIEN’s photonic line systems to eliminate the need for extra fiber for quantum channels, and its Waveserver 5 encryption solutions that work with any QKD system and support Post-Quantum Cryptography. Ciena and REDIMadrid are also partnering with Axians, a specialist in digital and network infrastructures, to ensure smooth implementation and integration of the project.
Ciena Thrives on Cloud and Bandwidth Boom
Ciena is seeing positive signs in the market, such as increased customer spending driven by the rapid growth of AI applications. It continues to benefit from increased network traffic and demand for bandwidth, primarily due to the growing adoption of AI technology. Ciena’s Cloud and Service Provider clients are prioritizing network investments to support AI-related traffic growth, emphasizing long-term opportunities for its Systems and Interconnects divisions.
To take advantage of this, the company is focusing R&D efforts on Coherent Optical Systems, Interconnects, Coherent Routing, and solutions like DCOM, while reducing investments in residential broadband. Existing broadband products will still be sold and supported. Its Navigator Network Control Suite experienced over 30% year-over-year order growth in the first half of fiscal 2025, driven by its advanced, microservices-based features. Blue Planet plays a vital role in major provider projects, supporting digital transformation with AI and data-driven tools. Building on fiscal 2025 momentum, Ciena expects approximately 17% revenue growth in fiscal 2026, aligning with 2025 projections and reaching the high end of its three-year CAGR target a year early.
Increased network traffic, higher demand for bandwidth, and the adoption of cloud architectures remain key drivers of growth as the company aims to boost its profitability through a balanced mix of new and existing customers. Ciena’s portfolio, including WaveLogic, RLS, Navigator, and Interconnect Solutions, continues to be a recognized industry standard, with WaveLogic 6 and RLS providing an 18-24 month technology lead and a strong position to serve global AI network opportunities.
WaveLogic 6 Extreme is seeing strong market adoption, attracting customers who seek greater capacity while reducing space and power requirements in their networks. Ciena is currently the only provider offering a 1.6 terabit WAN solution and expects to maintain this leadership in next-generation optical technology for at least two years. The company is making progress with industry-first wins with cloud providers.
CIEN’s Zacks Rank & Stock Price Performance
Ciena currently carries a Zacks Rank #1 (Strong Buy). Shares of the company have risen 131.3% in the past year compared with the Zacks Communication-Components industry's growth of 82.4%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Ubiquiti Inc. ((UI - Free Report) ) carries a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti invests significantly in research and development activities to develop innovative products and state-of-the-art technology, expanding its addressable market and staying at the cutting edge of networking technology. The company believes its new product pipeline will help increase average selling prices for high-performance, best-value products, thus boosting the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Headquartered in Carlsbad, CA, Viasat Inc. ((VSAT - Free Report) ) carries a Zacks Rank #2 (Buy). It designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. It provides high-bandwidth, high-performance communication solutions to the public, as well as to military, enterprise, and government agencies. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models.
InterDigital, Inc. ((IDCC - Free Report) ) currently carries a Zacks Rank #2. The company delivered an average earnings surprise of 54.27% in the trailing four quarters.
InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive significant value, considering the massive size of the market it licenses.