Until not so long ago, wireless communications was the wave of the future. Today, it is an inescapable necessity. One highly-regarded equipment provider was formed recently by the merger of two rivals. Now it is the largest independent supplier of wireless transmission systems in the world.

Harris Stratex Networks (NASDAQ: HSTX) makes wireless network products for mobile and fixed service providers and private networks. Specialties include microwave radios for access and trunking applications, Ethernet transmission systems and network management software. The firm serves mobile network operators, public safety agencies, utility and transportation companies, government agencies and broadcasters, in more than 135 countries. Harris Stratex was formed in January of this year, when Stratex Networks merged with Harris Corporation's (NYSE: HRS) Microwave Communication Division. Competitors include Alcatel-Lucent (NYSE: ALU), Motorola (NYSE: MOT), Nokia (NYSE: NOK), Nortel Networks (NYSE: NT) and Qualcomm (NASDAQ: QCOM).

The firm surprised the Street earlier in the month, when it reported Q2 EPS of 18 cents and revenues of $174.1 million. Analysts had been expecting 14 cents and $156 million. Management also guided FY08 EPS to $1.05-1.22 ($1.06 consensus) and FY08 revenues to $670-702 billion ($670.25M consensus). Ferris Baker Watts and Needham subsequently reiterated "buy" ratings on the issue.

MOST NOTEWORTHY: Genzyme Corp (NASDAQ: GENZ) and Sprint-Nextel Corp (S) topped today's list of initiations:

• Stifel initiated Genzyme Corp (NASDAQ: GENZ) with a Buy rating and $75 target, as the firm is positive on Genzyme's robust pipeline and growth.

• BMO Capital started Sprint Nextel Corp (NYSE: S) with a Market Perform rating.

OTHER INITIATIONS:

• Lehman Bros initiated Savvis Inc (NASDAQ: SVVS) with an Overweight rating and $52 target.

• Merriman initiated Harris Stratex Networks (NASDAQ: HSTX) with a Buy rating after the company posted strong December numbers; the key industry drivers are expected to continue to be robust while margin improvement is expected to continue. Share appreciation of Harris Stratex Networks is anticipated, as fundamental improvement is driven by industry growth and cost structure. Needham also started Harris Stratex Networks with a Buy rating and $27 target.

• Morgan Stanley resumed coverage of Cablevision Systems Corp (NYSE: CVC) with an Underweight rating and $29 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).