NEW YORK (TheStreet) -- Cisco Systems (CSCO) - Get Report won a Verizon (VZ) - Get Report contract to help the telecom company modernize its U.S. network by incorporating 100G optical technology.

Verizon wants to modernize its optical network by replacing its legacy infrastructure with packet-based optical transport capabilities.

Verizon said that it will be using the new technology to "advance and scale its network while maintaining existing services and reducing service-activation times as well as network operation and maintenance costs."

Analysts at Cowen believe that between Cisco and Ciena (CIEN) - Get Report, who also won a piece of the contract, the companies could see between $200 million and $300 million in revenue over two years.

Cisco shares are up 0.11% to $28.03 in after-hours trading after closing intraday trading down 1.43% to $28.

TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• CSCO's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
• Powered by its strong earnings growth of 70.37% and other important driving factors, this stock has surged by 30.65% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CSCO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, CISCO SYSTEMS INC's return on equity exceeds that of both the industry average and the S&P 500.
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 67.5% when compared to the same quarter one year prior, rising from $1,426.00 million to $2,389.00 million.
• You can view the full analysis from the report here: CSCO Ratings Report

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