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Infinera (INFN) to Enhance APRESIA's Access Network Portfolio
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Infinera Corporation (INFN - Free Report) is set to enhance the access network solutions portfolio of APRESIA Systems, Ltd. (APRESIA), a key player in Japanese network infrastructure, by integrating Infinera’s ICE-X coherent pluggables. This collaboration aims to provide APRESIA with advanced capabilities, enabling new revenue-generating services and reducing both capital and operational expenditures.
The inclusion of Infinera’s ICE-X pluggables, known for their software programmability, will allow APRESIA to offer high-speed point-to-point and 100G bidirectional transport applications. These capabilities are critical in addressing the increasing demand for network capacity, particularly at the network edge, driven by data-intensive applications and services. By utilizing Infinera’s digital subcarrier technology, APRESIA can extend the reach of high-speed optical services cost-effectively.
Kenta Watabiki, Director of Sales at APRESIA Systems Ltd., emphasized the growing need for innovative access solutions optimized for speed, flexibility and efficiency. The integration of Infinera’s ICE-X pluggables into APRESIA’s product lineup will offer new approaches to access and edge connectivity for service providers, data centers, cloud providers and cable operators as their networks scale.
APRESIA also plans to expand the application support of ICE-X to include point-to-multipoint functionality in the future, significantly enhancing network efficiency and reducing costs by up to 70%. This future expansion will further solidify APRESIA’s position in providing high-performance network solutions.
Image Source: Zacks Investment Research
Increasing Adoption of ICE Solutions
Infinera ICE portfolio's capabilities align with market trends toward higher bandwidth and more flexible, cost-effective network solutions. As service providers and data centers continue to face escalating traffic demands, Infinera's advanced optical technologies position the company as a key enabler of next-generation network infrastructure.
This sustained focus on innovation is expected to strengthen Infinera's competitive edge in the global market and drive customer growth. Infinera’s ICE-X coherent intelligent pluggable has been adopted by Australia’s NBN, Europe’s Aire Networks, a major Tier 1 service provider and a major U.S. cable operator.
This year, Infinera also rolled out ICE-X 800G Intelligent Coherent Pluggable during the Optical Fiber Communication Conference 2024 event. Infinera also demonstrated its ICE-X 400G Intelligent Coherent Pluggable in the host platforms of Arista Networks, Inc. (ANET - Free Report) and DZS in the event.
Arista Networks has been a long-term partner of Infinera in the field of optical networking. The two companies have a history of developing metro cloud networking solutions that combine data center switching with optical transport.
Infinera recently announced that its GX Series ICE6 800G solution has been selected by American Tower Corporation (AMT - Free Report) to connect Sao Paulo, Rio de Janeiro, Goias, Bahia and the Federal District. The partnership with American Tower has significantly expanded Infinera's footprint in Brazil.
Conclusion
The partnership between Infinera and APRESIA signifies a major advancement in access network technology. By integrating ICE-X coherent pluggables, APRESIA can offer enhanced, cost-effective solutions to meet the growing demands for network capacity, reinforcing both companies' positions as leaders in innovative network solutions.
However, Infinera’s near-term prospects look gloomy, considering the dim industry outlook for the optical transport equipment market. Per a report by Dell’Oro Group, the optical transport equipment market declined 13% year over year in the first quarter of 2024. The report further suggests that this segment is expected to decrease 2% in 2024 as customers are dealing with excess inventory.
The report also underscores that communication service providers worldwide, particularly in North America and Asia Pacific, are growing more cautious due to macroeconomic conditions. This caution leads them to postpone projects to future quarters and manage their capital expenditure carefully. This does not bode well for Infinera’s near-term prospects.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.52 billion, which indicates a year-over-year decline of 5.5%. The Zacks Consensus Estimate for earnings has been revised downward by approximately 92% to 2 cents per share and calls for a decrease of 91% year over year.
Shares of INFN have soared 28.6% year to date (YTD), outperforming the Zacks Computer - Networking Industry, which has registered a decline of 6.3% during the same time frame. Last week’s announcement of entering a definitive agreement to get acquired by Nokia Corporation (NOK - Free Report) has been the major contributor to the INFN stock’s YTD rally.
The acquisition of Infinera by Nokia could unlock substantial strategic and financial benefits, positioning the combined entity as a leader in the optical networking sector, capable of driving innovation, expanding market share and delivering long-term value to shareholders. The takeover transaction values Infinera’s common stock at $6.65 per share or an enterprise value of $2.3 billion.
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Infinera (INFN) to Enhance APRESIA's Access Network Portfolio
Infinera Corporation (INFN - Free Report) is set to enhance the access network solutions portfolio of APRESIA Systems, Ltd. (APRESIA), a key player in Japanese network infrastructure, by integrating Infinera’s ICE-X coherent pluggables. This collaboration aims to provide APRESIA with advanced capabilities, enabling new revenue-generating services and reducing both capital and operational expenditures.
The inclusion of Infinera’s ICE-X pluggables, known for their software programmability, will allow APRESIA to offer high-speed point-to-point and 100G bidirectional transport applications. These capabilities are critical in addressing the increasing demand for network capacity, particularly at the network edge, driven by data-intensive applications and services. By utilizing Infinera’s digital subcarrier technology, APRESIA can extend the reach of high-speed optical services cost-effectively.
Kenta Watabiki, Director of Sales at APRESIA Systems Ltd., emphasized the growing need for innovative access solutions optimized for speed, flexibility and efficiency. The integration of Infinera’s ICE-X pluggables into APRESIA’s product lineup will offer new approaches to access and edge connectivity for service providers, data centers, cloud providers and cable operators as their networks scale.
APRESIA also plans to expand the application support of ICE-X to include point-to-multipoint functionality in the future, significantly enhancing network efficiency and reducing costs by up to 70%. This future expansion will further solidify APRESIA’s position in providing high-performance network solutions.
Image Source: Zacks Investment Research
Increasing Adoption of ICE Solutions
Infinera ICE portfolio's capabilities align with market trends toward higher bandwidth and more flexible, cost-effective network solutions. As service providers and data centers continue to face escalating traffic demands, Infinera's advanced optical technologies position the company as a key enabler of next-generation network infrastructure.
This sustained focus on innovation is expected to strengthen Infinera's competitive edge in the global market and drive customer growth. Infinera’s ICE-X coherent intelligent pluggable has been adopted by Australia’s NBN, Europe’s Aire Networks, a major Tier 1 service provider and a major U.S. cable operator.
This year, Infinera also rolled out ICE-X 800G Intelligent Coherent Pluggable during the Optical Fiber Communication Conference 2024 event. Infinera also demonstrated its ICE-X 400G Intelligent Coherent Pluggable in the host platforms of Arista Networks, Inc. (ANET - Free Report) and DZS in the event.
Arista Networks has been a long-term partner of Infinera in the field of optical networking. The two companies have a history of developing metro cloud networking solutions that combine data center switching with optical transport.
Infinera recently announced that its GX Series ICE6 800G solution has been selected by American Tower Corporation (AMT - Free Report) to connect Sao Paulo, Rio de Janeiro, Goias, Bahia and the Federal District. The partnership with American Tower has significantly expanded Infinera's footprint in Brazil.
Conclusion
The partnership between Infinera and APRESIA signifies a major advancement in access network technology. By integrating ICE-X coherent pluggables, APRESIA can offer enhanced, cost-effective solutions to meet the growing demands for network capacity, reinforcing both companies' positions as leaders in innovative network solutions.
However, Infinera’s near-term prospects look gloomy, considering the dim industry outlook for the optical transport equipment market. Per a report by Dell’Oro Group, the optical transport equipment market declined 13% year over year in the first quarter of 2024. The report further suggests that this segment is expected to decrease 2% in 2024 as customers are dealing with excess inventory.
The report also underscores that communication service providers worldwide, particularly in North America and Asia Pacific, are growing more cautious due to macroeconomic conditions. This caution leads them to postpone projects to future quarters and manage their capital expenditure carefully. This does not bode well for Infinera’s near-term prospects.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.52 billion, which indicates a year-over-year decline of 5.5%. The Zacks Consensus Estimate for earnings has been revised downward by approximately 92% to 2 cents per share and calls for a decrease of 91% year over year.
Infinera carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of INFN have soared 28.6% year to date (YTD), outperforming the Zacks Computer - Networking Industry, which has registered a decline of 6.3% during the same time frame. Last week’s announcement of entering a definitive agreement to get acquired by Nokia Corporation (NOK - Free Report) has been the major contributor to the INFN stock’s YTD rally.
The acquisition of Infinera by Nokia could unlock substantial strategic and financial benefits, positioning the combined entity as a leader in the optical networking sector, capable of driving innovation, expanding market share and delivering long-term value to shareholders. The takeover transaction values Infinera’s common stock at $6.65 per share or an enterprise value of $2.3 billion.