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Ciena Partners With Telxius To Deploy WaveLogic Technology

Published 01/20/2020, 09:09 PM
Updated 07/09/2023, 06:31 AM

Ciena Corporation (NYSE:CIEN) recently announced that it has offered its WaveLogic technology, WaveLogic 5 Extreme (WL5e), to Telefonica (MC:TEF), S.A.’s (NYSE:TEF) global telecommunications infrastructure company — Telxius for deployment in subsea cable. The collaboration is likely to be beneficial for both the companies and strengthen their respective market positions.

The deployment of WL5e took place in the course of a trial wherein Telxius’ BRUSA cable achieved 550 Gbps single-wavelength channel speed. With a data transmission capacity of 138 Tbps, the Telxius-backed submarine cable covers nearly 10,200 kilometers and has landing stations that stretch from Rio de Janeiro, Brazil to Virginia Beach in the United States. Post the incorporation of Ciena’s cutting-edge technology, BRUSA’s transmission capacity surged beyond 160 Tbps.

BRUSA has been named as one of the highest-capacity subsea cable that provides low latency and high-throughput network connectivity between two of the largest economies in the Americas — Brazil and the United States. In addition, Ciena’s GeoMesh Extreme has exhibited its effectiveness in the trial by proactively addressing network faults via intelligent mesh protection coupled with software intelligence and automation, thereby equipping BRUSA cable systems with enhanced reliability, scalability and optimized network designs.

Ciena’s WaveLogic 5 Extreme technology is the fifth generation of coherent optical solutions that enables ubiquitous deployment of seamless optical networking with an unrivalled programmable capacity of 800G. This maximizes operational efficiencies and encourages cost savings and service agility in long haul infrastructure and submarine applications. With these benefits, Ciena’s WL5e helps network providers streamline their networking infrastructure to deliver data-heavy bandwidth services and manage unforeseeable traffic growth for its customers amid dynamic changing preferences.

Ciena is expected to benefit from rising demand for packet-optical transport and switching products, integrated network and service management software. Additionally, it is increasingly investing in the data and optical fiber market in order to cash in on the tremendous growth opportunities offered by rising bandwidth demand from network service providers. The company is also making efforts to expand 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 over the long run.

Ciena has long-term earnings growth expectation of 17.3%. The company topped earnings estimates thrice in the trailing four quarters, the positive surprise being 11.7%, on average.

The stock has gained 10.1% compared with the industry’s rise of 10.6% in the past year.

Ciena currently has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader industry are GoDaddy Inc. (NYSE:GDDY) and Perficient, Inc. (NASDAQ:PRFT) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GoDaddy has a long-term earnings expectation of 15%.

Perficient has a long-term earnings growth expectation of 11.8%.

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GoDaddy Inc. (GDDY): Free Stock Analysis Report

Telefonica SA (TEF): Free Stock Analysis Report

Perficient, Inc. (PRFT): Free Stock Analysis Report

Ciena Corporation (CIEN): Free Stock Analysis Report

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