CHANDLER, Ariz. - Viavi Solutions Inc. (NASDAQ: NASDAQ:VIAV) announced today the release of its Automated Lab-as-a-Service for Open RAN (VALOR™), which includes a suite of tests for Open Radio Unit (O-RU) conformance, performance, security and subsystem interoperability that align with O-RAN ALLIANCE specifications.
The release 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, emphasizing O-RU Commercialization and Innovation.
VALOR offers an on-demand testing environment featuring a comprehensive set of O-RAN compliant components provided by various partners, including golden O-RUs, O-DUs, and O-CUs. It also boasts a large RF anechoic chamber for over-the-air validation, such as system-level Massive MIMO performance testing for up to 16 parallel spatial layers. The service is designed to help vendors meet the demanding performance requirements of mobile network operators (MNOs) for large-scale equipment deployment.
With a $21.7 million grant from the first NTIA funding opportunity, VALOR aims to provide an unbiased, automated testing and integration platform for Open RAN, facilitating certification processes in the U.S., especially for new market entrants, startups, and academic institutions. Academic institutions and NTIA co-grantees can access VALOR at no cost, subject to availability.
The service is built on VIAVI's NITRO® Wireless Open RAN Test Suite, which includes the TM500 and TeraVM test platforms. The TM500 O-RU Tester, for instance, is an enhancement of legacy conformance test tools, offering direct performance testing capabilities. VIAVI also provides Test-as-a-Service (TaaS) for short-term and time-sensitive 5G and Open RAN projects, catering to peaks in lab demand for major network equipment manufacturers (NEMs) and communication service providers (CSPs).
VIAVI, with over a century of experience in network testing and assurance, has been an active participant in the development of Open RAN specifications and has contributed to global Open RAN PlugFests for five years.
This announcement is based on a press release statement from VIAVI Solutions.
InvestingPro Insights
As Viavi Solutions Inc. (NASDAQ: VIAV) takes significant strides in the Open RAN space with its VALOR™ service, investors are closely watching the company's financial health and market position. Here are some key metrics and insights from InvestingPro that provide a broader context to VIAV's latest initiatives:
InvestingPro Data shows a market capitalization of $1.7 billion, reflecting the company's size and investor valuation in the market. Despite a challenging environment with a revenue decline of 14.08% in the last twelve months as of Q3 2024, VIAV maintains a strong gross profit margin of 58.59%. This margin indicates that while top-line growth is under pressure, the company is effectively managing its cost of goods sold, retaining a healthy level of profitability on its products and services.
However, the P/E Ratio (Adjusted) stands at -113.35, highlighting that investors may have concerns about the company's earnings relative to its share price. This could signal cautious sentiment around VIAV's future profitability or reflect the impact of non-recurring charges that have affected recent earnings.
InvestingPro Tips suggest that while analysts expect net income growth this year, they also anticipate a sales decline in the current year. This juxtaposition of metrics indicates that while VIAV is managing to improve its bottom line, it may be facing headwinds in expanding its revenue streams. Additionally, the company is seen to be trading at a high EBITDA valuation multiple, which could suggest that the market is pricing in future growth expectations or potential strategic value in VIAV's Open RAN initiatives.
For investors looking to delve deeper into Viavi Solutions' financials and market potential, there are additional InvestingPro Tips available at https://www.investing.com/pro/VIAV. These tips can provide more nuanced insights into VIAV's shareholder value, liquidity position, and profitability outlook.
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