CommScope Holding Company, Inc. recently upgraded its SYSTIMAX portfolio to launch SYSTIMAX 2.0 to provide improved solutions to better handle the evolving network infrastructure challenges. The portfolio improvement is likely to give the company an edge over other players in the market.
SYSTIMAX 2.0 Enhancements
SYSTIMAX solutions have been known for providing high-performance connectivity solutions for data centers, enterprise networks, and telecommunications over the past four decades. The brand offers a wide range of structured cabling solutions, including copper and fiber-optic cabling systems for applications such as Ethernet networking, which is essential for long-distance high-speed data transmission.
The technology has gained the trust of business enterprises by supporting critical networking infrastructure. SYSTIMAX 2.0 solutions are expected to carry this legacy forward with the inclusion of copper, fiber, intelligent management, edge architecture, and extended reach solutions, all of which are programmed to address the biggest connectivity disruptions faced by core customers.
Apart from featuring SYSTIMAX legacy solutions, the upgraded version has incorporated a few other additions, such as GigaSPEED XL5, VisiPORT, Propel, Constellation, and SYSTIMAX Assurance.
GigaSPEED XL5, which is likely to be available in the second quarter of 2024, is a premium solution that supports 2.5/5 GbE applications up to 100 meters. It is ideally designed for multigigabit applications like backhaul for next-gen wireless access points. The VisiPORT patch panels, which are available for immediate installation, are an easy-to-manage solution that monitors the status and capacity of all copper and fiber ports in real time.
CommScope is developing additional solutions for the SYSTIMAX portfolio and is planning to launch them in 2024 and 2025, closer to their target availability dates. The company values its partners’ contribution to the success of SYSTIMAX 2.0 solutions and continued portfolio evaluation.
Market Expectations
SYSTIMAX 2.0 can serve as a ground-breaking development for CommScope in the technology market. Upon the launch of the new solution, it is expected to witness a surge in revenue through increased sales, upgrades, and expansion of the customer base as more and more customers invest in advanced solutions.
The stock has lost 71.5% over the past year compared with the industry’s decline of 54.4%.
Image Source: Zacks Investment Research
CommScope presently has a Zacks Rank #3 (Hold).
Key Picks
Juniper Networks Inc., sporting a Zacks Rank #1, is a leading provider of networking solutions and communication devices. It delivered an earnings surprise of 6.5%, on average, in the trailing four quarters. Juniper has a long-term earnings growth expectation of 9.9%. It has a VGM Score of A.
NVIDIA Corporation, currently carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 18.99% and is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit.
Arista Networks, Inc., sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment.
