Investopedia: Ciena On A Roll With Carrier Spending Picking Up

It looks like the good times have arrived for Ciena (Nasdaq:CIEN), as this optical telecom equipment company delivered another beat-and-raise quarter with its fiscal third quarter results. Although carrier spending is not uniformly strong, Ciena shares could move higher as telcos loosen up their purse strings and move forward with badly needed capacity upgrades.

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http://www.investopedia.com/stock-analysis/090413/ciena-roll-carrier-spending-picking-cien-csco-vz-cyni.aspx

Seeking Alpha: Cyan Looks To Bring The Green

Talking about increasing carrier network traffic may border on the cliché at this point, but it's a real problem for network operators. If Cisco's (CSCO) prior estimates of compound annual traffic growth of 23% between 2012 and 2017 are even close to accurate, carriers badly need new strategies for coping with traffic growth, as boosting capex by 23% a year for five years isn't much of an option.

This is where Cyan (CYNI) comes into the picture. Cyan is unproven (less than $100 million in revenue), but the company has two separate approaches to help carriers meet their network needs - packet-optical transport systems that can help manage traffic at the metro edge and reduce the need for expensive routers, and a purpose-built SDN solution for carriers that offers the promise of more efficient network utilization.

Cyan is going up against numerous well-established equipment vendors and alternative approaches to managing network traffic. What's more, I have some concerns that the company's position in carrier SDN isn't as unique as hoped. Even so, I believe there is an argument to be made that Cyan shares are trading meaningfully below fair value. While this is a company/stock with above-average risks, a fair value in the range of $12.00 seems reasonable and that range could expand well into the high teens.

Please read the full Seeking Alpha article here:
Cyan Looks To Bring The Green