Yahoo Finance Cambium (CMBM) Upgrades FWA Software for Reduced Latency
Cambium Networks Corporation CMBM recently introduced a software upgrade to its PMP 450 Fixed Wireless Access (FWA) platform to help boost throughput speeds for customers. This is likely to make it easy for service providers to offer more than 100 Mbps services using existing equipment to increase capacity and reduce network latency during peak periods.
The software upgrade reduces the need to install costly hardware and/or replace existing ones. Leveraging new product innovations and software advancement, Cambium has reduced the cost per Mbps delivered per user by 96% over the last decade from $50.62 per user in 2008 to $2.24 per user at present.
The company capitalizes on its cloud-based network management software that enables operators to seamlessly design, deploy and manage their networks from cloud to tower to edge. These streamlined operations minimize several network performance complexities with utmost agility. Cambium also offers a variety of other network management tools, such as cnMaestro, XMS Cloud, cnHeat and cnArcher, to enhance ease of use and network performance.
Its solutions have been particularly designed to function under harsh conditions while remaining aligned with demanding performance specifications required by various industries. These avant-garde solutions enhance economies of scale for network operators by supporting a large number of customer premise equipment per fixed wireless access point and reduce ongoing management costs through embedded software and device reliability. Despite challenging market conditions stemming from the COVID-19 pandemic, increased demand for wireless infrastructure projects owing to higher requirements for work-from-home connectivity solutions bolsters Cambium’s robust business model.
The company is well-positioned to benefit from proprietary software and product ramp-ups, which will likely enable it to deliver a compelling combination of price, performance and spectrum efficiency. One of the major advantages of Cambium is its fixed wireless broadband networking infrastructure solutions, which are distinguished by embedded intelligence and scalability. Markedly, the majority of its revenues are derived from PTP and PMP solutions.
PTP solutions are connected to high-bandwidth wireline networks in a bid to transport wireless broadband backhaul to facilities. PMP solutions are mainly used to backhaul video surveillance systems. The company believes that growth in data traffic is likely to be primarily driven by the addition of applications and connected devices used for both enterprise and service provider use cases. Moreover, with the rapid transition to Wi-Fi 6 solutions, Cambium witnessed major improvements in enterprise Wi-Fi solutions supported by improved field deployments.
Some of its competitive strengths are advanced RF signal algorithms that boost network performance with evolving technologies like noise filtering and frequency reuse and efficient wireless fabric that enables operators to strengthen their networks with incremental fixed wireless access points. Its cloud-based network management software acts as a major tailwind that simplifies the overall deployment process through hassle-free configuration and monitoring. Continued investments in wireless fabric and embedded software capabilities with expanded channel partner relationships are the cornerstones of its long-term growth across a diverse set of markets.
The stock has lost 9.7% in the past year compared with the industry’s decline of 12.6%.
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Cambium currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Arista Networks, Inc. ANET, sporting a Zacks Rank #1, is likely to benefit from the strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 12.7%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Juniper Networks, Inc. JNPR carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 7% and delivered an earnings surprise of 1.6%, on average, in the trailing four quarters.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence.
Viavi Solutions Inc. VIAV, carrying a Zacks Rank #2, is another key pick. Headquartered in Scottsdale, AZ, Viavi is a leading provider of network test, monitoring and service enablement solutions to diverse sectors across the globe. The product portfolio of the company offers end-to-end network visibility and analytics that help build, test, certify, maintain, and optimize complex physical and virtual networks.
Viavi also offers high-performance thin film optical coatings for light-management solutions used in anti-counterfeiting, 3D sensing, electronics, automotive, defense and instrumentation markets. It delivered an earnings surprise of 9.1%, on average, in the trailing four quarters.
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