In a concerted effort to maintain its dominant position in long-haul transport network, Ciena Corporation (CIEN - Free Report) recently inked a deal with a Sweden-based telecommunications giant — Telia Carrier — for the deployment of its C&L-Band photonic line system in the United States. Financial terms of the agreement were undisclosed. Markedly, Ciena continues to benefit from market share gains on the back of technology leadership and diversified customer base in high-growth markets.
Considered as the backbone of Sweden’s telecommunications infrastructure, Telia Carrier is a wholly-owned subsidiary of Telia Company that provides a suite of enterprise, networking and mobile data solutions in more than 120 countries. Equipped with approximately 450 local access partners around the globe, it provides secure and stable Internet connectivity to customers and businesses with unparalleled bandwidth. The company also provides direct access to its Cloud Connect service with the help of major partners like Amazon.com, Inc.’s (AMZN - Free Report) cloud computing platform Amazon Web Services, Oracle Corporation (ORCL - Free Report) and Alphabet Inc.’s (GOOGL - Free Report) Google Cloud.
Per the partnership, Telia Carrier will leverage Ciena’s avant-garde 6500 Reconfigurable Line System (RLS) to provide seamless connectivity solutions across the United States and efficiently address the highest-capacity networking requirements while maximizing operational efficiencies. Specifically designed to operate in multi-vendor environments, the new-age long-haul network is a compact and simple-to-deploy connectivity solution that improves scalability and addresses unpredictable traffic requirements with minimal footprint. The 6500 RLS optimizes C&L-band architecture and solves engineering challenges, thereby elevating end-customers’ experience.
Apart from 6500 RLS, Telia Carrier will also capitalize on Ciena’s Manage, Control and Plan (MCP) domain controllers and Waveserver transponsders. Markedly, MCP is a cloud-native platform which accelerates end-to-end operational workflows through SDN software control and automation. Meanwhile, the Waveserver family of interconnect platforms are powered by WaveLogic 5 Extreme and WaveLogic Ai, which are considered as the fifth generation of coherent optical solutions that enables ubiquitous deployment of seamless optical networking with an unrivalled programmable capacity of 800G. With that, the innovative core transport network infrastructure will deliver data-heavy bandwidth services and provide flexible long-haul fiber connectivity to enhance the connectivity requirements of enterprise and web-scale customers based in the United States.
Notably, Ciena is expected to benefit from rising demand for packet-optical transport and switching products, integrated network and service management software. Additionally, it is investing in the data and optical fiber market to cash in on tremendous growth opportunities offered by rising bandwidth demand from network service providers. The company is also 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’s strong product portfolio is likely to boost its top-line growth in the long run.
Ciena has long-term earnings growth expectation of 16.3%. The company topped earnings estimates thrice in the last four quarters. It has a trailing four-quarter positive earnings surprise of 18.4%, on average. Backed by efficient operational strategies, the Zacks Rank #2 (Buy) stock has returned 46.3% compared with the industry’s growth of 45.5% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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