Communication networking solution provider,
) is improvising its Channel Partner Program to enhance financial
incentives and rewards in partnership deals to support its
ADTRAN's channel partners remain vital to the company's growth
given their contribution to investments and expanded sales
coverage. The company's channel partner program provides new
benefits like special discounts, specialized training in ADTRAN
solutions and pre and post sales support.
Other than the company's channel partnerships, we believe its
organic growth will largely be based on recovery in the spending
pattern of tiered carriers and the enterprise segment as well as
the increased penetration of TA 5000. Professional services at
domestic and international levels, mobile broadband
infrastructure upgrade and funds generated through Broadband
Stimulus projects will also aid growth.
The company has also registered significant growth in its
professional service activities that provide deployment of the
Total Access System components in telecommunication companies.
The company projects that professional service capabilities will
remain accretive, as both domestic and international carriers
seek cost-effective methods to accelerate network deployment.
However, ADTRAN's near-term growth will be under pressure due
to weak performances by the company's traditional products,
mainly HDSL. Regulatory factors, heavy reliance on key customers
) as well as high spending on expansion could also restrict the
company's revenue stream and profitability.
Acme Packet, Inc.
), which has a Zacks Rank #1 (Strong Buy) is another company in
this sector, which we believe is worth considering.
ADTRAN has a Zacks Rank #3 (Hold) rating.
ADTRAN INC (ADTN): Free Stock Analysis Report
ACME PACKET INC (APKT): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.