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Ciena (CIEN) to Boost Converge ICT's Network in Philippines

Zacks Equity Research
·3 min read

Ciena Corp. CIEN has announced that Converge ICT Solutions is using its solutions to augment connectivity to expand customer base.

Converge ICT, a leading pure fiber data network and Internet service provider in the Philippines, is investing in its network to deliver better capacity to its customers that comprise content network providers, enterprises and consumers. The service provider is upgrading its network to drive greater levels of programmability, with the ability to scale to 800G wavelengths. Ciena’s 400G WaveLogic Ai coherent optical solution is likely to deliver a more scalable network in Greater Metro Manila.

Notably, Converge ICT is deploying Colorless-Directionless-Contentionless and flexible grid ROADMs as fundamental elements of its photonic layer. The framework reduces operating expenses and increases system optimization. Ciena is providing an end-to-end solution that includes design, installation and solution acceptance. The Hanover, MD-based networking systems and software company’s Liquid Spectrum innovative analytics apps provide real-time visibility into network efficiency.

The fundamental demand drivers of Ciena’s business that include increased network traffic, demand for bandwidth and the adoption of cloud architectures remain strong. The company has the largest optical R&D investment capacity in the industry, which enables it to deliver leading innovation with the best time to market.

Ciena is benefiting from diversification across customer segments and regions combined with its technology leadership, including the 5th-generation 800-gig WaveLogic modem. The company added several new products and capabilities to its 5G Network Solutions aimed at reducing network complexity and fueling operators’ migration from 4G to 5G. Ciena is boosting its Packet Networking portfolio with new Adaptive IP capabilities, coherent optics and purpose-built hardware platforms.

However, the company is witnessing a slowdown in orders due to the COVID-19 pandemic, which is expected to hurt revenues for a few quarters.

Shares of Ciena have added 12.3% in the past year compared with nearly the same growth of the industry.

Ciena has a Zacks Rank #4 (Sell), at present.

Some better-ranked stocks in the broader industry are Corning Incorporated GLW, Acacia Communications, Inc. ACIA and Harmonic Inc. HLIT, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Corning delivered a trailing four-quarter positive earnings surprise of 39.9%, on average.

Acacia delivered a trailing four-quarter positive earnings surprise of 17%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

Harmonic pulled off a trailing four-quarter positive earnings surprise of 4.4%, on average. The company’s earnings topped the consensus estimate in three of the last four quarters.

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