ADTRAN, Inc. (NASDAQ:ADTN) is celebrating a milestone after it recently demonstrated the first open and multi-vendor vCPE (virtual Customer Premise Equipment). The technology targets adoption in the telecommunications industry as an open software-defined access framework.
According to ADTRAN, its vCPE is a significant leap forward for telecom carriers and it hopes the product will generate significant buyer interest.
Renaissance Technologies is currently the hedge fund with the largest position in ADTRAN at 1.16 million shares.
Carrier class test
ADTRAN, Inc. (NASDAQ:ADTN) said that the European Advanced Networking Test Center (EANTC) provided a carrier class test bed for its vCPE. The testing saw participation of 12 vendors, who achieved significant success in infrastructure interoperability using the technology. According to ADTRAN, vendors were able to create advanced combinations of vCPE that enabled them to achieve deep packet inspection filters, virtualized firewalls and a host of other network add-ons.
The test was mainly focused on bringing out the interoperability of vCPE functions. As such, some of the configurations completed by the vCPE included point-to-point connectivity that involved two sites running the same vCPE functions for IPv4 connections.
The other successfully completed test was static bandwidth provisioning. The goal of this test was to show how virtual infrastructure is supposed to handle shared resources. Another test focused on managing of bandwidth on various demand plans.
ADTRAN, Inc. (NASDAQ:ADTN) is hoping to provide the standard open network tools that will enable carriers to successfully navigate today’s challenges to achieve true global interconnectivity. With the industry’s first vCPE, ADTRAN’s confidence about providing network solutions for the future has been bolstered.
ADTRAN doesn’t appear to be worried about its liquidity position as a reason it might have a challenge attaining its goals with vCPE. The company’s short-term liquidity improved to $120.9 million at the end of 1Q2016 compared to $118.9 million a year earlier.
Although ADTRAN’s sales pulled back 0.4% to $142.2 million in the latest quarter, continued cost curtailment saw net income increase to $5 million in the latest quarter compared to $3.3 million a year ago.
Note: This article is written by Andy Parker and originally published at Market Exclusive.