Communication networking solution provider,
) has collaborated with Ireland-based Accuris Networks to offer
networking solutions for cloud-based mobile offload and roaming.
Accuris Networks provides Wi-Fi Offload and Roaming Inter-Working
solutions and will facilitate ADTRAN's Total Solution Alliance
Given the new partnership, ADTRAN will be able to tap
opportunities in the cloud-based market and enhance networking
solutions for mobile data transmit.
With Mobile data offload support from ADTRAN, operators will
now be able to manage their heavy data traffic on 3G and LTE
networks and support a data session on Wi-Fi networks, reducing
the burden on cellular networks. We believe the new partnership
will increase revenues from broadband access and IP networking
equipment, and make it more competitive.
Apart from this partnership, the company also gained from its
acquisition of Nokia Siemens Network (NSN) fixed-line Broadband
Access business in May 2012. The company has already begun
working on manufacturing NSN's selected products using its supply
chain and believes the new business will add to ADTRAN's global
presence given its established business in the international
The company is also moving into virtual wireless LAN solutions
with the buyout of Bluesocket, a privately held U.S. company that
specializes in wireless network solutions with virtual control
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Besides the company's strategic collaborations, we believe
organic growth for the company will be largely based on a
recovery in the spending pattern of tiered carriers and the
enterprise segment, increased penetration of TA 5000,
professional services at domestic and international levels,
mobile broadband infrastructure upgrade and funds generated
through Broadband Stimulus projects.
The company has also registered significant growth in its
professional services that provide deployment of the Total Access
System components in telecommunication companies. The company
projects that professional services capabilities will remain
accretive as both domestic and international carriers will seek
cost-effective methods to accelerate network deployments.
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 its 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 stock in
this sector worth considering.
ADTRAN has a Zacks Rank #3 (Hold) rating.