Windstream Corporation
(
WIN
) has recently unveiled its latest Internet security solution,
Endpoint Security Protection. The latest offering will expand the
company's product portfolio, primarily in the enterprise segment
and we expect it to propel customer accretion alongside revenue
growth.
Endpoint Security Protection, a product of McAfee, provides
simple security option for small business organizations. It
provides a single solution against multiple Internet security
threats like virus, spyware, spam, hacking and phishing.
Windstream remains focused on expanding its service offerings
to businesses with VoIP services, data bundles, cloud and managed
services. In addition, Windstream has re-branded its consumer
offerings with advanced Internet and entertainment services.
The company gained significant traction in the enterprise
market by acquiring PAETEC Holding Corp in December 2011. Besides
financial benefits, the acquisition has catapulted significant
growth in enterprise market with nationwide coverage of fiber
network cables.
The acquisition increased opportunities in cloud computing and
managed services and attracted business customers across many
locations. Windstream is also planning to introduce customized
business solutions that will help improve its competitive
position in the industry. We believe the launch of Endpoint
Security Protection is concurrent with the company's plan to tap
opportunities arising from IT needs within small and medium
business segments.
However, Windstream faces the major risk of access line losses
that are negatively affecting its revenue in the wireline
business unit. Regulatory issues coupled with the constant
pressure of technology innovation and next-generation product and
service offerings are the other headwinds. Further, the company
faces stiff competition from peers like
Frontier Communications
(
FTR
).
Windstream has a Zacks Rank #4 (Sell). For the long term, we
have our Neutral recommendation on the stock.
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