Ciena’s CIEN coherent optics solutions were recently leveraged by Indonesia-based infrastructure company Biznet.
In collaboration with Ciena partner Terrabit Networks, Biznet will utilize Ciena's 6500 Packet Optical Platform, powered by WaveLogic coherent optics. This will aid Biznet in boosting the network capacity, coverage and adaptability of the New Biznet Fiber. Ciena's 6500 Packet Optical Platform is designed to deliver high-capacity networking to augment the bandwidth efficiency, capacity and flexibility of the entire network.
Biznet is looking to expand its network across 180 cities across Java, Bali, Sumatra, Batam and Bangka Islands.
In July 2022, Ciena’s Waveserver 5 platform, powered by WL5e coherent optics, was deployed by Brazil-based Alloha Fibra group’s subsidiary Mob Telecom (Mob). Mob will integrate Ciena’s platforms to provide bandwidth connectivity up to 800Gb/s per channel across several data centers and four cable landing stations in Fortaleza, Brazil.
Ciena’s 6500, WL5e coherent optical solution and Manage, Control and Plan (MCP) domain controller was leveraged by MSA Resources Sdn Bhd (“MSAR”) to build the Digital Super Highway Network. The integration will help MSAR to provide connectivity across long distances. It will help the company solidify its foundation to implement upcoming technologies like connecting key data centers and submarine cable landing stations.
Ciena Corporation Price and Consensus
Ciena Corporation price-consensus-chart | Ciena Corporation Quote
Opportunities Galore amid Higher Bandwidth Demand
Increasing cloud adoption, rising demand for higher capacity and bandwidth and proliferation of edge applications drive demand for Ciena’s diversified product portfolio.
Ciena is witnessing strong momentum for its WaveLogic 5 Extreme solution. In the last reported quarter, the company added 14 new customers for its WaveLogic 5 Extreme solution.
Also, the company continues to win deals for its solutions in next-gen metro and edge use cases. Incremental gains from the healthy performance of its software automation business, especially Blue Planet Software, are aiding the top-line growth.
However, lingering global supply chain disruptions, component shortages and related higher logistics costs are weighing down on revenue and margin performance. In the last reported quarter, total revenues were down 12.2% year over year to $868 million, owing to the negative impact of late delivery and significantly ‘lower-than-committed’ volume from a small number of suppliers for specific components, noted Ciena.
Owing to the prevailing supply chain woes and global macroeconomic uncertainty, the company provided muted revenue outlook for the fiscal fourth quarter. For the fiscal fourth quarter, the company expects revenues of $800-$880 million. The Zacks Consensus Estimate is pegged at $893.2 million, down 14.2% year over year.
The adjusted gross margin is estimated to be nearly 40%. Adjusted operating expenses are estimated to be in the range of $315 million.
At present, Ciena carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Some better-ranked stocks from the broader technology space are Cadence Design Systems CDNS, Keysight Technologies KEYS and Arista Networks ANET. Arista sports a Zacks Rank #1 (Strong Buy) while Cadence and Keysight carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have lost 0.3% in the past year.
The Zacks Consensus Estimate for Keysight’s fiscal 2022 earnings is pegged at $7.47 per share, up 4.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 11%.
Keysight’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average being 9.3%. Shares of KEYS have lost 6.6% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 10.1% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.3% in the past year.
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