Ciena Corporation


CIEN

recently announced that The Eastern Africa Submarine Cable System or EASSy is deploying the company’s GeoMesh Extreme solution to boost the capacity of its submarine cable system to meet the increasing demand and improve connectivity to the Americas, the Middle East, Europe and Southeast Asia. EASSy’s submarine system extends from Africa’s east to south coast for about 10,000 kilomteres.

Ciena’s Manage, Control and Plan domain controller will manage the network. For EASSy, implementing a software-driven approach is expected to result in increasing operational proficiency and cost efficiency, added Ciena.

The GeoMesh solution will enable EASSy to double the network capacity from 18 terabit/second (or Tb/s) to 36Tb/s across the system. This will help to maintain speed, with continuing bandwidth growth.

EASSy will also be leveraging Ciena Services to execute hardware upgrades (like migration of legacy traffic) along with management and support of its network operations center in South Africa.

Ciena has been witnessing increasing demand for the GeoMesh Extreme solution. In February 2022, Ciena announced that NO-UK — the submarine cable system between Norway and the United Kingdom — achieved a record-breaking 800Gb/s line rate using its GeoMesh Extreme. This will allow NO-UK to offer customers enhanced capacity, greater speeds and a sustainable offering through reduced energy consumption.

Prior to that, Ciena

collaborated

with Gulf Bridge International to enhance the latter’s Smart Network capacity and performance on the back of its GeoMesh Extreme solution. The network revamp will enable the telco to leverage new technologies and augment design capacity by 10 Tb/s, with improved capabilities and faster delivery times.

Powered by WaveLogic 5 Extreme coherent optical technology, Ciena’s

GeoMesh Extreme

boasts a comprehensive network architecture (both overland and undersea) that enables submarine network operators to safeguard terabits of traffic from cable faults. The solution also boosts information-carrying capabilities and minimizes the total cost of network ownership, thereby managing submarine network assets with augmented margins and revenues.

Yet, the pandemic-triggered woes and industry-wide supply-chain disruptions are causes of concern for CIEN, which carries a Zacks Rank #4 (Sell). Shares of the company have gained 13.1% against the

industry

’s increase of 12.9%.

Key Picks

Some better-ranked stocks from the broader technology sector include

Broadcom


AVGO

,

Apple


AAPL

and

Arrow Electronics


ARW

. Arrow Electronics sports a Zacks Rank #1 (Strong Buy), while Broadcom and Apple carry a Zacks Rank of 2 (Buy) at present. You can see


the complete list of today’s Zacks #1 Rank stocks here

.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.49 per share up 7.4% over the past 60 days. The long-term earnings growth rate of AVGO is pegged at 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 38.3% in the past year.

The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.16 per share, up 0.8% over the past 60 days. The long-term earnings growth rate is pegged at 12.5%.

Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 20.3%. Shares of AAPL have rallied 46.5% in the past year.

The Zacks Consensus Estimate for Arrow Electronics 2022 earnings is pegged at $18.48 per share, up 18.8% over the past 60 days. The long-term earnings growth rate is 3.1%.

Arrow Electronics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 19.1%. Shares of ARW have gained 11.2% in the past year.

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