Viavi Solutions Launches New Optical Loss Test Set
Earlier this week, Viavi Solutions unveiled the DCX 700 tier 1 optical loss test set, a robust multifiber tester capable of supporting up to 24 fibers simultaneously. With native configurations available in 12-, 16-, and 24-fiber, this device is designed to streamline and expedite tier 1 certification in high-density data center settings.
By integrating the DCX 700 with its newly developed INX 700 probe microscopes and modular adapters, Viavi aims to enhance its testing portfolio to accommodate advancing data center connectivity types. This innovation also seeks to minimize setup complexity, reduce training time, and limit inspection downtime for hyperscale operators.
Impact on Data Center Testing
Next, we’ll explore how Viavi’s shift towards higher-density, automated multifiber testing may shape the company’s investment narrative regarding AI data centers and network timing security.
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Investing in Viavi Solutions requires a belief in the sustained demand for high-speed, fiber-rich, and AI-driven networks. Test, measurement, and timing tools will remain critical, even as the company navigates current losses and integrates its recent acquisitions. The launch of the DCX 700 provides a catalyst for data center upgrades in the short term; however, it does not mitigate existing risks associated with cyclical carrier spending and geopolitical influences affecting Viavi’s supply chain.
Among the recent developments, the new Cesium-less ePRTC360+ timing solution stands out alongside the DCX 700, as both are designed for AI data centers. They address the crucial intersection of timing security and high-density optical testing in purchasing decisions. These solutions are central to Viavi’s strategy that aims to enhance end-to-end instrumentation in data centers and advanced networks, potentially counterbalancing ongoing weaknesses in traditional wireless and service provider budgets.
Nevertheless, while the momentum from these new products is promising, investors should remain cautious of possible delays in spending from major carrier and cable customers.
Read the full narrative on Viavi Solutions (it’s free!)
Viavi Solutions anticipates a revenue projection of $1.3 billion and earnings of $227.3 million by 2028. Achieving this goal requires a consistent 5.8% annual revenue growth and a substantial increase of approximately $192.5 million in earnings from the current $34.8 million.
Discover how Viavi Solutions’ forecasts lead to a fair value estimate of $26.07, indicating a 12% downside to its current share price.
In conclusion, the introduction of the DCX 700 by Viavi Solutions marks a significant advancement in optical testing tools, aligning with the ongoing demands for enhanced data center capabilities. While the company faces challenges, its commitment to innovation and strategic positioning in the market suggests potential opportunities for growth. Investors should continue to monitor developments, balancing optimism with caution in their decisions.
