Ericsson (ERIC) Rolls Out AT&T FlexWare Across The Globe
Zacks Investment Research | May 22, 2017 08:45AM ET
Ericsson (BS:ERICAs) (NASDAQ:ERIC) announced that it is making AT&T (NYSE:T) FlexWareSM available across its global corporate network, covering geographies like the U.S., Latin America, Middle East, and Europe.
AT&T FlexWare will be virtualizing Ericsson’s network services, thus allowing it to adapt its network to changing business needs on an almost real-time basis. AT&T FlexWare is modular, and hence easy to install. This makes the roll-out to multiple global sites quicker than traditional appliances, and will also lower Ericsson’s total cost of network ownership.
In addition, Ericsson is expanding the reach of its AT&T managed VPN.
After a bearish run for most part of last year, Ericsson’s shares gained some momentum since the beginning of 2017, having gained 13%, in stark contrast to the Zacks categorized Ericsson Quote
The company’s CEO – Ekholm – has implemented a restructuring plan and is confident of “significant improvements” in the business next year, under stable market conditions. Ekholm’s restructuring plan will help streamline Ericsson’s focus areas, improve profitability and revitalize its technology and market leadership. The company also plans to explore options for the company’s media business and review “low-performing” contracts in its managed service business.
However, as of now, we have a Zacks Rank #5 (Strong Sell) on the stock, as we are apprehensive over the impact of the restructuring on the company’s profits and share price in the near term.
Stocks to Consider
Some better-ranked stocks in the same space include Ubiquiti Networks, Inc. (NASDAQ:UBNT) , Sonus Networks, Inc. (NASDAQ:SONS) and Sierra Wireless, Inc. (NASDAQ:SWIR) , each holding a Zacks Rank #2 (Buy).You can see Original post
Get The News You Want