CommScope-TESSCO Partner To Offer Safety Wireless Solutions
Zacks Investment Research | Oct 16, 2019 08:18AM ET
Reinforcing its long-term partnership, TESSCO Technologies Incorporated (NASDAQ:TESS) has secured the first-year production capacity from CommScope Holding Company, Inc. (NASDAQ:COMM) for its new public safety product — Bi-Directional Amplifier. Addressing the primary need for reliable and cost-effective public safety wireless systems, the product is expected to be shipped in late fourth-quarter 2019 or early first-quarter 2020.
The Collaboration
The alliance has primarily been undertaken as the State and local building authorities mandated public safety wireless systems in new and existing commercial structures during fires, floods and other emergencies. The available products in the market mostly offered no direct return on investments and often led to higher operating costs. This, in turn, provided an opportunity to both CommScope and TESSCO to jointly develop such products that will cater to the demand-supply gap.
CommScope’s new technology has been specifically designed to intercept signals over the air, creating minimal footprint within the building. It is software upgradeable and comes in a range of frequency band and power options, supports battery backup, and is fully compliant with National Fire Protection Association and National Electrical Manufacturers Association standards.
With CommScope expanding the product line in this category, TESSCO continues to build a competitive and robust public safety offering, leveraging on the strength of the long-standing partnership.
Core Focus
With the acquisition of ARRIS and Ruckus Networks, CommScope is well positioned to capitalize on the industry growth trends, including network convergence, fiber and mobility, IoT, demand for additional bandwidth, low latency and ultra-high reliability.
The company is making the best use of customer relationships and competitive position, paving the way for healthy mobility solutions business as communication service providers continue to establish their networks to increase capacity and coverage. It is expected to benefit from favorable networking market dynamics, while creating shareholder value.
Notably, given CommScope’s focus on sound technology, highly efficient supply chain and continuous improvement, it has emerged as a preferred partner for telecommunications businesses, as the industry shifts to 5G. With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, CommScope is actively developing solutions designed to support wireline and wireless network convergence, which is crucial for the success of 5G.
CommScope has long-term earnings growth expectation of 16.3%. The company topped earnings estimates thrice in the trailing four quarters, delivering average positive surprise of 11.3%. The stock has lost 26.2% compared with the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.