CHANDLER, Ariz. - Rohde & Schwarz (R&S) and Viavi Solutions Inc. (NASDAQ: NASDAQ:VIAV) today announced the enhancement of their collaborative testing solutions for Open Radio Unit (O-RU), aimed at assisting radio manufacturers with the United States Department of Commerce's National Telecommunications and Information Administration (NTIA) funding opportunities. These testing solutions support the interoperability and energy efficiency of O-RUs, which are vital for the commercial deployment of open radio networks.
The partnership offers a comprehensive O-RU Conformance Test, which includes the R&S SMW200A vector signal generator, R&S FSVA3000 signal and spectrum analyzer, and the R&S VSE signal analysis software, alongside VIAVI's TM500 O-RU Tester and O-RU Test Manager application. This integrated system allows for the emulation of real-world radio environments and simplifies the testing workflow for O-RU interoperability with O-RAN distributed units.
In a move to address the scalability needs of radio development testing, the companies have introduced the R&S PVT360A, a compact and cost-optimized solution that combines with VIAVI testing equipment. This setup is designed for research and development teams requiring multiple test lines, catering to a range of use cases and functionality tests to speed up the time to market for O-RAN radios.
Additionally, the partnership has developed a fully automated testbed to verify the energy efficiency of O-RUs. This is a response to the industry's focus on minimizing power consumption in 5G radio access networks without compromising performance. The testbed includes the R&S RTO6 oscilloscope and R&S NGP800 power supply, along with VIAVI's TM500 O-RU Tester, which collectively assess energy efficiency under various load conditions.
Alexander Pabst, Vice President Market Segment Wireless Communications at Rohde & Schwarz, highlighted the track record of their joint O-RU conformance test solution, which has been instrumental in the initial certifications of O-RUs in Asia and Europe. Ian Langley, Senior Vice President and General Manager at VIAVI's Wireless Business Unit, expressed pride in supporting the NTIA's Open RAN initiatives with their unified customer experience and best-of-breed approach.
This expansion of the partnership between Rohde & Schwarz and VIAVI is set to support the efforts of the NTIA to advance Open Radio technology, reflecting the evolution of open radios and the growing significance of test requirements in the field. This information is based on a press release statement.
In other recent news, Viavi Solutions Inc. has announced the release of its Automated Lab-as-a-Service for Open RAN (VALOR™), a suite of tests designed for Open Radio Unit conformance, performance, security, and subsystem interoperability.
The service is particularly tailored to radio manufacturers aiming to participate in the National Telecommunications and Information Administration (NTIA) Public Wireless Supply Chain Innovation Fund's second funding opportunity. This development comes as Viavi continues to contribute to the development of Open RAN specifications and global Open RAN PlugFests.
On the financial front, Viavi's Q3 FY2024 results displayed a net revenue of $246 million, hitting the lower end of their guidance. The company's operating margin exceeded expectations at 9.3%, while Network and Service Enablement (NSE) segment revenues fell short due to restrained spending by enterprise customers. The Optical Security and Performance (OSP) segment, however, outperformed its revenue guidance.
Looking ahead, Viavi anticipates a Q4 revenue range of $246 million to $258 million, with an operating margin around 10.6% and earnings per share between $0.06 and $0.08. These recent developments highlight Viavi's ongoing efforts to navigate a challenging market while focusing on strategic growth areas.
InvestingPro Insights
As Rohde & Schwarz and Viavi Solutions Inc. (NASDAQ: VIAV) bolster their collaborative efforts to enhance testing solutions for Open Radio Unit (O-RU), it's insightful to consider the financial health and market sentiment surrounding Viavi Solutions. Here are some key metrics from InvestingPro that may interest investors and stakeholders:
- The market capitalization of Viavi Solutions currently stands at $1.71 billion, reflecting the company's size and market presence within the tech sector.
- Viavi's price-to-earnings (P/E) ratio, as of the last twelve months leading up to Q3 2024, is a negative -114.09, indicating that the company has reported a loss per share during this period. This metric can be a point of consideration for investors looking at the company's profitability.
- The company's stock has experienced a significant drop over the last three months, with a -30.3% price total return, which may signal to investors a potential buying opportunity or a need for caution depending on their investment strategy.
InvestingPro Tips also provide valuable insights into Viavi's financial and operational stance:
- Viavi Solutions is expected to see net income growth this year, which could be a positive indicator for future profitability.
- Analysts predict a sales decline in the current year, which may impact the company's revenue streams and should be taken into account when assessing the company's performance.
For those interested in a deeper dive into Viavi Solutions' financials and market performance, InvestingPro offers additional tips that can be accessed through their platform. In fact, there are 11 InvestingPro Tips available for Viavi Solutions at https://www.investing.com/pro/VIAV, providing a comprehensive analysis of the company's financial health and market potential.
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