Calix, Inc.'s (NYSE:CALX) micro cap stock rose on Thursday after the telecommunications equipment manufacturer announced it had formed a deal with wireless device maker Ericsson to use its internet transmission lines.
According to Reuters, the agreement will include the sale of Ericsson's EDA 1500 GPON solution that was created to send high bandwidth data to users, who can use the solution to connect to the internet over a fiber optic network. No financial details of the agreement have been released.
Analysts saw the deal as a win for Calix, as it came soon after the company also announced it had inked another deal with Ericsson to be its preferred global partner for broadband access applications. Jefferies analyst George Notter said this could be a good time for Calix to move forward, according to Bloomberg.
"At face value, we like this deal as it jumpstarts Calix's international strategy in a thoughtful, low-risk way," he wrote in a note to clients.
As of 3:25 p.m. on Thursday, August 23, Calix shares were up 10 percent to $5.82 each.
