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Sycamore, Ciena, Juniper Rise on Pentagon Pact

Six firms will share in the $386 million GIG-BE project.
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Ciena

(CIEN) - Get Ciena Corporation Report

,

Juniper

(JNPR) - Get Juniper Networks, Inc. Report

and

Sycamore

(SCMR)

were surging in Wednesday's premarket after being chosen for a government networking contract that could mean revenue streams to each for years to come.

Ciena was up 43 cents, or 7%, to $6.53 after confirming it was one of several optical networking companies to get a piece of the military's so-called global information grid bandwidth-expansion, or GIG-BE, project. Ciena will supply an optical transport and switching platform for the initiative, which is supposed to bring the Pentagon's global network infrastructure for voice, data, video and services up to 10 gigabits per second among 100 worldwide locations.

The project's deployment is expected to begin next year. While the initial estimate of the contracts' total value is only about $386 million, the selection of providers could have significance in years to come for each company's ability to do business with the military and federal government.

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Meanwhile, Juniper was up 49 cents, or 2.6%, to $19 after being awarded a contract to provide core routers for the project, which is overseen by the government's Science Applications International Corp. Juniper said it expects to deploy its M- and T- series routing platforms in early 2004.

Sycamore was up 45 cents, or 10%, to $5.10 after being tapped to provide optical switches for the project. Other companies named in the contract's announcement Tuesday night were

Sprint

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,

Qwest

(Q)

and

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

.

Cisco's failure to win a slice of the contract's routing component is being viewed by some Wall Street brokerages Wednesday as a loss for the country's biggest networking company. Overall, however, analysts think the parceling went as expected, with the major beneficiaries being Sycamore and Ciena.