Infinera INFN has completed the demonstration of xHaul’s multi-vendor handling capability in the European Open Test & Integration Center in Torino. The xHaul is a flexible and unified transport network architecture that supports 5G mobile broadband.
The xHaul networking architecture used XR optics point-to-multipoint optical transmission to achieve the multi-vendor demonstration of 5G. This technology will cut the costs of operating 5G by minimizing the number of optical transceivers used in the networking.
The testing was conducted in collaboration with DZS DZSI and Calnex. The equipment used in this project included DZS Saber 2200 and Calnex Paragon-NEO. Telecom Italia Mobile and EU project ALLEGRO also collaborated on this project.
The networking solution also contains Infinera’s ICE-X pluggable. INFN’s ICE-X or Infinite Capacity Engines are optical engines featuring improved transmission, efficiency and performance.
Infinera planted the seeds of the ICE portfolio through the acquisition of Telecom Holding Parent LLC in 2018, which specializes in optical networking equipment. Eventually, Infinera started developing coherent optical pluggable in 2021.
Infinera Corporation Price and Consensus 
Infinera Corporation price-consensus-chart | Infinera Corporation Quote
Infinera Benefits From Its ICE Portfolio
Shares of INFN have returned 11.8% year to date against the Zacks Computer - Network Industry’s decline of 10%.
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, the company also rolled out ICE-X 800G Intelligent Coherent Pluggable during the OFC 2024. Infinera also demonstrated its ICE-X 400G Intelligent Coherent Pluggable in the host platforms of Arista Networks ANET 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. Recently, ANET became a member of INFN’s XR Forum, a consortium that promotes XR optics.
Infinera recently announced that its GX Series ICE6 800G solution has been selected by American Tower AMT to connect Sao Paulo, Rio de Janeiro, Goias, Bahia and the Federal District. This partnership has significantly expanded INFN's footprint in Brazil.
The project will extend the fibre optic network to more than 30,000 kilometers, making AMT and Infinera the first to provide low-latency infrastructure to the region's network, Internet and 5G providers.
Gloomy Industry Outlook Affects Infinera
Per a report by Dell’Oro Group, the optical transport equipment market has declined 13% year over year in the first quarter of 2024. The report further suggests that this segment is expected to decline 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 $1.53 billion, indicating a year-over-year decline of 5.5%. The Zacks Consensus Estimate for earnings is pegged at 2 cents per share, indicating a decline 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.
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