Ciena (CIEN) to Upgrade Hawaiki's Network for More Capacity

Ciena Corporation’s CIEN WaveLogic 5 Extreme technology will be implemented by Hawaiki Submarine Cable LP in a significant network upgrade. This will enable Hawaiki to support its customers who are facing burgeoning demand for more capacity and speed, resulting from the COVID-19 situation.

Headquartered in Auckland, New Zealand, Hawaiki owns and operates the 15,000-kilometer Hawaiki Transpacific Cable. The submarine cable connects Australia, New Zealand, American Samoa, Hawaii and the U.S. west coast.  In June, Hawaiki deployed Ciena’s GeoMesh Extreme solution to improve reliability and deliver lower latency between Oregon and Hawaii.

Part of Ciena’s fifth-generation coherent optical solutions, WaveLogic 5 Extreme integrates cutting-edge innovation to deliver fiber capacity with less equipment. With a programmable capacity from 200G to 800G, the solution provides a step-function improvement in scale and economics. It provides benefits in single-span Data Center Interconnect, metro or long haul infrastructure and submarine applications.

Installed on the Waveserver 5 platform, the technology substantially reduces cost per bit with fewer wavelengths. Hawaiki will also deploy Ciena’s Manage, Control and Plan domain controller, which delivers greater control and visibility of the network.

The fundamental demand drivers of Ciena’s business that include increased network traffic, demand for bandwidth and the adoption of cloud architectures remain strong. The company has the largest optical R&D investment capacity in the industry, which enables it to deliver leading innovation with the best time to market.

Ciena is benefiting from diversification across customer segments and regions along with its technology leadership, including the 5th-generation 800-gig WaveLogic modem. The company added several new products and capabilities to its 5G Network Solutions aimed at reducing network complexity and fueling operators’ migration from 4G to 5G. Ciena is boosting its Packet Networking portfolio with new Adaptive IP capabilities, coherent optics and purpose-built hardware platforms.

That said, the company is witnessing a slowdown in orders due to the pandemic, which is expected to hurt revenues for a few quarters. Ciena operates in an intensely competitive market for the sale of communications networking equipment, software and services.

The stock has gained 16.8% in the past year compared with 59.6% growth of the industry.


Ciena currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader industry are Plantronics PLT, United States Cellular USM and NIC EGOV, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Plantronics delivered a trailing four-quarter earnings surprise of 568.2%, on average.

U.S. Cellular delivered a trailing four-quarter earnings surprise of 231.1%, on average.

NIC delivered a trailing four-quarter earnings surprise of 27.5%, on average. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.

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