ADTRAN (ADTN) & BT Group Perform Groundbreaking Network Trial

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ADTRAN Holdings Inc. ADTN and BT Group have completed a field trial of optical transport over a live research fiber network for the first time in Europe.

BT Group is a leading telecommunications company headquartered in London, the United Kingdom. It offers a wide range of telecommunications services, including fixed-line and mobile voice services and IT infrastructure services to customers across 180 countries.

Leveraging Adtran’s Coherent 100ZR pluggable transceiver, the trial showcased its ability to validate the transport of 100Gbit/s wavelengths across a wide range of metro routes and edge aggregation networks. The trial also achieved high spectral efficiency with low power consumption, thereby paving the way for the development of next-generation (more scalable and effective) solutions.

It is becoming imperative to boost the transport capacity of access and edge aggregation networks amid a singular increase in demand for speed and bandwidth. To avoid making expensive changes to existing infrastructure, operators require low-cost and easy-to-implement solutions to upgrade networks.

As a result, the Adtran Coherent 100ZR transceiver comes in handy. It is small in size and can be directly plugged into an operator’s transmission unit. It is a QSFP28-compatible transceiver with a digital signal processor, which is optimized for data rates of 100Gbit/s. This makes it easy to integrate with deployed infrastructure.  It also facilitates easy adoption of 100ZR coherent technology at the network edge.

ADTN highlighted that the demonstration shows that the network infrastructure can be reshaped with highly efficient and low-power solutions. Instead of deploying multiple amplifiers within each transceiver module, the deployment of a single amplifier in the optical line system has proved beneficial. Along with augmented network performance, the approach has cut down on operational spending and carbon footprint.

Headquartered in Huntsville, AL, ADTN designs, manufactures, markets and services network access solutions for communication networks. Its innovative solutions and services are utilized by a diverse global customer base of network operators.

However, the company reported a decline in net sales from $358.3 million in the prior-year quarter to $225.4 million. The top line missed the consensus estimate of $232 million. The downtick was due to soft demand trends coupled with unfavorable macro conditions and forex volatility in the international market.

The stock has lost 66% in the past year against the industry's growth of 58%.

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Zacks Rank & Key Picks

ADTRAN currently carries a Zacks Rank #5 (Strong Sell).

NVIDIA Corporation NVDA, currently sporting a Zacks Rank #1 (Strong Buy), delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVDA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

Pinterest PINS, carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 37.42%. In the last reported quarter, PINS delivered an earnings surprise of 3.92%.

The company is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets.

AudioCodes Ltd. AUDC currently carries a Zacks Rank #2. The company has a long-term earnings growth expectation of 24.8%. It delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.

Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multinational enterprises and leading tier-1 operators around the world.

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