Ciena to Provide Switches to McLeodUSA in $200 Million Pact

Ciena (CIEN Quote - Cramer on CIEN - Stock Picks) agreed to provide optical core switches for McLeodUSA's (MCLD Quote - Cramer on MCLD - Stock Picks) One Functional Network in a deal worth about $200 million.

With the Ciena technology, McLeodUSA's voice and data network will be completely automated, and its design will reduce capital and operating costs, McLeodUSA said in a news release.

The switches will be delivered during the first quarter, and more than 50 will be installed by the end of 2001, according to McLeod, a local telecom provider based in Cedar Rapids, Iowa.

In recent Nasdaq trading, Ciena, Linthicum, Md., was down $3.19, or 3.9%, to $79.69. McLeodUSA lost 38 cents, or 2.3%, to $16.06.