The networking gearmaker says it will supply optical equipment to be used in the long-distance portions of MCI's network. The deal is for transport systems, leaving open the possibility that Ciena has yet to get the full switching component. There has been recent industry speculation that Ciena's once-leading CoreDirector optical switch is falling out of favor among buyers as rival
Shares of the Linthicum, Md. tech shop fell 8 cents, or 1%, to $5.98 in midday trading.
In a note to clients, J.P. Morgan analyst Ehud Gelblum estimated the contract could be worth as much as $100 million over two years.
Ciena was expected to announce the MCI deal as long ago as late last year, but the Ashburn, Va. phone giant has been late in its efforts to restructure the business and emerge from Chapter 11 protection. MCI recently filed for a 60-day extension on its bankruptcy reorganization plan.
On Thursday, Ciena
posted first-quarter financial results and announced plans to acquire two smaller equipment makers in hopes of priming its sputtering sales pump.