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Viavi (VIAV) Expands Tie-Up for Improved Network Testing

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Viavi Solutions Inc. (VIAV - Free Report) has announced an expanded partnership with Rohde & Schwarz to deliver advanced O-RU testing solutions. This collaboration aims to support the U.S. Department of Commerce's NTIA Public Wireless Supply Chain Innovation Fund Second Notice of Funding Opportunity, focusing on Open Radio Commercialization and Innovation.

The enhanced partnership combines the strengths of both companies to provide comprehensive and flexible network test solutions. These solutions cater to the evolving needs of radio manufacturers, enabling them to meet the stringent requirements for interoperability and performance. Viavi’s TM500 O-RU Tester and O-RU Test Manager Application, alongside Rohde & Schwarz's R&S SMW200A vector signal generator and R&S FSVA3000 signal and spectrum analyzer, offer a powerful, integrated system for O-RU conformance testing.

This joint solution supports the conformance tests defined by the O-RAN ALLIANCE, ensuring that O-RUs are compatible with the O-RAN distributed unit (O-DU). Additionally, it can perform conformance cases for 5G/LTE base stations as defined by 3GPP TS 38.141/36.141, providing a versatile tool for manufacturers.

The partnership also addresses the need for scalable testing solutions as O-RAN radios move from lab validation to commercial deployment. The R&S PVT360A vector signal analyzer and generator, combined with Viavi’s TM500 O-RU Tester, offer a cost-effective, scalable solution that accelerates time to market for R&D teams.

Energy efficiency in O-RU is another focus area for this collaboration. The automated testbed developed by Rohde & Schwarz and Viavi includes tools like the R&S RTO6 oscilloscope and R&S NGP800 power supply, ensuring efficient power consumption without compromising performance.

With a track record of successful global plugfests and certifications, the expanded partnership positions Viavi and Rohde & Schwarz to support NTIA’s efforts to advance Open Radio technology. This collaboration not only enhances joint network test solutions but also strengthens Viavi’s market position and innovation capabilities in the evolving landscape of wireless communications.

Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. The convergence of network technologies requires significant investments from both traditional carriers (telecom and cable) and cloud service providers. Viavi’s solutions are well-positioned to meet these rapidly changing industry trends, given its technology prowess, product depth and wide customer base.

The stock has lost 22.7% in the past year against the industry’s growth of 53%.

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Zacks Rank & Key Picks

Viavi currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, 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 experience. Arista has a long-term earnings growth expectation of 15.7% and delivered an earnings surprise of 15.4%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

NVIDIA Corporation (NVDA - Free Report) , currently flaunting a Zacks Rank #1, is another key pick in the broader industry. It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit or GPU. Over the years, the company’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.

The company’s GPU platforms are playing major roles in developing multi-billion-dollar end-markets like robotics and self-driving vehicles. NVIDIA has a long-term earnings growth expectation of 30.9% and delivered an earnings surprise of 18.4%, on average, in the trailing four quarters.

Motorola Solutions, Inc. (MSI - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 7.5%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 9.5%.

Motorola provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure service providers. It develops and services both analog and digital two-way radio, voice and data communications products, and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.

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