Sycamore Networks

(SCMR)

was up 7.5% in preopen

Island

trading.

After the close Tuesday, it

posted second-quarter earnings of 6 cents per share, beating the Street's estimate of 5 cents and a year-ago loss of 1 cent.

The company said sales of its network equipment increased five-fold over the same period a year earlier. But Sycamore warned that it expects its sequential growth rate to slow in the second half of 2001 and the company said it would not raise its revenue and earnings outlook for the year.

Lehman Brothers

slashed its price target for the stock to $75 from $150.