ADTRAN Focuses on Fiber-Optic Technology to Boost Shares
ADTRAN, Inc. ADTN is actively focusing on fiber optic technology products to support high-speed network access solutions for use across Internet protocol (IP), asynchronous transfer mode (ATM) and time division multiplexed (TDM) architectures in both wireline and wireless network applications.
ADTRAN expects solid traction in domestic markets for ultra-broadband and fiber-to-the-home solutions along with software-defined (SD) access and ethernet passive optical network (EPON) solutions. Its global leadership in software-defined access is likely to ensure a steady stream of revenues as it helps clients reduce cost and accelerate service delivery and deployment. The increased customer engagements across its comprehensive portfolio of software-defined access, 10G solutions and G.fast products should translate to expanded relationships and revenue growth.
ADTN’s Business Efficiency Program
ADTRAN is undergoing a multi-year integration program to optimize its assets, business processes and information technology systems. The restructuring program is expected to maximize cost synergies by realizing operation scale, combining sales channels, streamlining corporate and general and administrative functions, including human capital resources and combining sourcing and production costs.
The company has also embarked on a Business Efficiency Program that expands upon its restructuring efforts to reduce operating expenses and focus on capital efficiency improvements. These include salary reductions, an early retirement program, a site consolidation plan, inventory write-downs from product discontinuances and suspension of quarterly dividends. Although ADTRAN has realized short-term costs related to inventory write-downs and severance charges, the Business Efficiency Program is likely to reap synergistic benefits in the long run to fuel sustainable growth.
Portfolio Strength: ADTN’s Key Growth Driver
ADTRAN’s comprehensive portfolio is a competitive differentiator with a wide array of flexible software and hardware network solutions and services that enable operators transition to a fully converged, scalable, highly automated, cloud-controlled voice, data, Internet and video network of the future.
To complement the Network Solutions portfolio and to enable customers to accelerate time to market, reduce costs and improve customer satisfaction, ADTRAN offers a complete portfolio of maintenance, turnkey network implementation, maintenance, solutions integration and managed services. The company’s network implementation services are a full spectrum related to engineering (pre-construction), installation/turn-up (construction) and provisioning (post-construction), partnering with customers to tailor a program to each specific service delivery need.
ADTRAN’s FSP 3000 open optical transport technology helps operators expand network capacity by facilitating parallel data transmission across multiple wavelengths, each supporting up to 800Gbit/s data speed. Its ALM fiber monitoring solution offers automated, real-time network oversight, minimizing downtime and ensuring service resilience to cater to the rising digital demands of businesses and public utilities. By addressing the unique challenges of fiber optic networks with such innovative products, ADTRAN aims to strengthen its position as a leader in fiber access solutions.
Key Players Operating in the Tech Space
Arista Networks, Inc. ANET is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista delivered an earnings surprise of 15%, on average, in the trailing four quarters. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
AudioCodes Ltd. AUDC delivered an earnings surprise of 10.1%, 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 multi-national enterprises and leading tier-1 operators around the world.
Airgain, Inc. AIRG offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve indoor and outdoor connectivity issues.
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ADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis Report
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