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Casa Systems, Inc. (CASA) Stock Surged 62.21% Current-Market, Here’s Why          

Casa Systems, Inc. (CASA) stock soared 62.21% in the current-market trading session at the price of $6.31 following a multi-year purchase deal with Verizon. 

Casa Systems offers future-proof solutions and advanced bandwidth for all access types to speed up 5G transformation. CASA technology formulates disruptive architectures to fulfill the demands of service-providing networks. The company’s suite of cloud-based network solutions unfurls new modes for service providers to build webs without limitations and maximizes revenue growth.  

CASA Acquired Multi-Year Contract

On 18th April 2022, CASA announced signing a multi-year purchase agreement with Verizon. CASA will deliver its 5G Core Network Functions to support Verizon’s Mobile Edge Compute service offering. MEC technology diverts computing resources onto cloud servers at the network edge. As part of the contract, Verizon will invest US$40 million in CASA common stock. The deal will result in an ownership stake of 9.9 percent. 

CASA Business Outlook  

For fiscal 2022, CASA expects its revenue to be from US$380M to US$430M. Operating income has expected to range from US$28M to US$48M. The company anticipates having adjusted EBITDA between US$58M and US$78M. Net income per share has expected to be from US$0.10 to US$0.28.  

CASA stock has focused on raising its software and cloud revenue. It will improve profitability and increase the stock’s margins for fiscal 2022. This current contract announcement is a significant landmark for CASA’s business growth. The deal validates the company’s leadership in MEC and positions CASA as a leader of 5G infrastructure in the U.S. The stock entered 2022 with the economic flexibility to navigate the supply chain headwinds while keep supporting its software growth. 

Conclusion   

Despite the supply chain problems during the second half of 2021, CASA made considerable advancements in its wireless products and delivered double-digit growth. The company acquired top-line growth, improved its working capital, earned a high cash balance, and lowered its debts during this period. 

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