Lucent Runs a Verizon Victory Lap - TheStreet

Lucent Runs a Verizon Victory Lap

The company is one of three suppliers named on a big metro-optical upgrade contract.
Publish date:

Lucent (LU) has taken another leg of the Verizon (VZ) - Get Report network-modernization triathlon.

The hexed gearmaker has now put together an actual winning streak, ringing up its second metro-optical deal in two years with the New York phone giant.


and one other (as yet unnamed) supplier shared the latest prize. No terms were disclosed, but Lucent said the value was "significant."

The victory comes just a week after Lucent surprised Wall Street with a

fourth-quarter profit, at last putting a cork in a three-year-plus geyser of red ink. On Monday Lucent rose 8 cents to $2.74.

The Lucent gear, called Metropolis DMX and LambdaUnite, will be used to upgrade Verizon's synchronous optical network, or Sonet, systems that make up the core of Verizon's inner city networks. This so-called next generation Sonet equipment opens the old phone networks to data traffic. Two years ago,

Lucent won a similar contract with Verizon that was to help add optical capacity to the old and overburdened local network.

While many industry observers note that the Murray Hill, N.J., equipment maker was the inside favorite for the contract, given that most of Verizon's original Sonet gear is from Lucent, some question how much business may have gone to the other suppliers.

Perhaps a clear loser in the deal is



, which has failed to gain traction in Verizon's metro-optical work. On Monday, Tellabs rose a dime to $7.10.

Lucent is also

in line for more of Verizon's business as a multibillion-dollar wireless equipment contract comes due for renewal in the next few months.