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Ribbon Subsidiary Exhibits 5G Interoperability Capabilities

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Ribbon Communications Inc. (RBBN - Free Report) recently announced that its subsidiary — ECI Telecom — has successfully demonstrated the best-in-class 5G-backed transport network solutions capabilities by leveraging its much-acclaimed Neptune 1800 platform. Markedly, the demonstration took place at European Advanced Networking Test Center (“EANTC”) in Berlin. EANTC is considered to be one of the leading independent test centers for telecommunication technologies. This interoperability test seems to be the call of the hour when network operators seek to generate higher 5G-driven revenues with advanced synchronization technologies rather than just boosting their network capacity.

ECI is an Israel-based manufacturer of telecommunications equipment that provides avant-garde cybersecurity solutions and packet optical transport products with a wide range of professional services. Notably, the company is a global provider of ELASTIC network solutions to various data center operators and communication service providers. ECI aims to broaden service offerings to enhance top-line growth, while streamlining and automating operations to minimize costs. Its solutions are specifically designed to deliver 5G connectivity dynamically with ultra-low latency, reliability and availability. The company had also been a part of 5G collaborations with Viavi Solutions Inc. (VIAV - Free Report) and BT Technology.

Few months back, Ribbon successfully completed the acquisition of ECI for 32.5 million shares of Ribbon stock and $324 million in cash. According to the deal, the two companies are expected to create a leading-edge solutions provider with combined revenues of more than $900 million. Serving customers in more than 140 countries, Ribbon anticipates that the combination is likely to enhance its competitive strength by expanding its product portfolio to data applications and optical networking. With ECI’s proven expertise in 5G deployments, the acquisition will add customers in utilities and defense as well as broaden carrier relationships in Europe and Asia. Moreover, this will strengthen Ribbon’s global customer base.

Per the interoperability test, ECI exhibited its cutting-edge transport network solutions that are required to support 5G-backed wireless telecommunications services for better network provisioning and traffic management. Impressively, the test was possible with the help of ECI’s Neptune 1800 platform. Known for its compatibility for 5G network slicing, Neptune 1800 is a high-capacity multiservice packet transport platform that provides a flexible and efficient end-to-end solution for IoT, metro and mobile backhaul applications. With unrivalled multi-service support, it supports mission-critical networks and combines carrier-grade service assurance with packet efficiency for optimized delivery of 5G services. Apart from network slicing, ECI has also developed a secure 5G timing process that highlights its accuracy across multi-vendor networks. Notably, ECI participated in this showcase for the sixth time.

Ribbon is focused on delivering real-time and secure data and voice network capabilities for the cloud, network and enterprise edge with consistent investment in high-growth markets.

The Zacks Consensus Estimate for the company’s current-year earnings has been revised 50.8% downward in the past 60 days to 30 cents. The stock is currently trading with a forward P/E of 14.7X. Shares of Ribbon have gained 2.5% against the industry’s decline of 1.6% in the past year.

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks in the broader industry are ADTRAN, Inc. (ADTN - Free Report) and Bandwidth Inc. (BAND - Free Report) . While ADTRAN sports a Zacks Rank #1 (Strong Buy), Bandwidth carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ADTRAN’s bottom line surpassed the Zacks Consensus Estimate thrice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 8.5%, on average.

Bandwidth’s bottom line surpassed the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 89.4%, on average.

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