ADTRAN, Inc. ADTN recently announced that the Turin and Piedmont Internet Exchange (TOP-IX), a non-profit consortium of Italy, has rolled out the country’s first time-as-a-service (TaaS) solution, utilizing its Oscilloquartz technology. Deployed across TOP-IX’s dedicated fiber network, the service aims to provide precise timing and synchronization to sectors like finance, healthcare and logistics, which require accurate timing to ensure smooth and reliable operations.

How ADTN’s Solution Could Prove Beneficial?

As industries increasingly rely on accurate timing for critical operations, ensuring uninterrupted and precise synchronization has become essential. However, establishing dedicated timing infrastructure can be complex and costly, limiting accessibility for many organizations. TOP-IX’s new TaaS offering, built on ADTRAN’s Oscilloquartz technology, addresses these challenges. As a secure and reliable alternative to traditional global navigation satellite systems, this innovative solution is set to provide a highly cost-effective way for businesses to access the precision synchronization necessary for demanding applications. 

At the heart of the TaaS solution lies ADTRAN’s state-of-the-art OSA 5410XG and OSA 5412 grandmaster clocks, which provide the necessary timing backbone. The OSA 5410 Precision Time Protocol (PTP) access grandmaster devices are optimized for synchronization distribution, testing and assurance at the network edge. Along with its high-speed capabilities, the solution’s multiple 10Gbit/s ports will likely enable TOP-IX to meet the rising demands of high-bandwidth applications, maintaining scalability. On the other hand, with its integrated organic light-emitting diode display, the OSA 5412 handles essential control locally efficiently. 

Both devices are equipped with comprehensive Syncjack technology, which provides real-time performance monitoring to ensure uninterrupted synchronization and seamless integration into modern and legacy networks. In addition, the easy deployment of these devices through low-touch provisioning will enable TOP-IX to offer a secure and efficient solution that replaces the need for building private timing infrastructures.

Increasing Client Base to Drive ADTN Performance

ADTRAN’s comprehensive portfolio is a competitive differentiator with a wide array of flexible software and hardware network solutions and services that enable operators to transition to a fully converged, scalable, highly automated, cloud-controlled voice, data, Internet and video network of the future. The company expects solid traction in domestic markets for ultra-broadband and fiber-to-the-home solutions, along with Software-Defined access and Ethernet passive optical network solutions. Its global leadership in software-defined access is likely to ensure a steady stream of revenues as it helps clients reduce costs and accelerate service delivery and deployment. 
 
ADTRAN’s flexible mid-size PTP grandmaster solution suite supports a wide range of applications and deployment scenarios, from mobile backhaul to professional broadcasting, ensuring that the network remains synchronized and operationally efficient. This deployment marks a significant development in Italy’s digital infrastructure, providing organizations with precise and secure timing solutions without the need for costly infrastructure investments.

With a strong presence in more than 60 countries, ADTRAN is expected to benefit from the increasing customer base. This will likely enable the company to generate higher revenues in the upcoming quarters. Its improved financial performance is likely to propel the stock upward.

ADTN’s Stock Price Performance

Shares of ADTRAN have gained 70.8% over the past year compared with the industry’s growth of 53.8%.

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ADTN’s Zacks Rank and Stocks to Consider

ADTRAN currently carries a Zacks Rank #4 (Sell).
 
Some better-ranked stocks in the broader industry have been discussed below:

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Celestica Inc. CLS carries a Zacks Rank #2 (Buy) at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.

Arista Networks, Inc. ANET, carrying a Zacks Rank of 2 at present, supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.

Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%. 

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ADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis Report

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