Ciena (Nasdaq: CIEN) jumped US$4.41 to $59.69 in morning trading Tuesday, after the company said it sold more than$150 million worth of optical systems to broadband communications companyTycom, which is building an undersea network.
Ciena said the two-year agreement covers Tycom’s purchase of Ciena’sMultiWave CoreDirector and MultiWave CoreStream systems for use in the newnetwork, which will link all six inhabited continents. Tycom also may useCiena systems to further increase its network’s capacity and efficiency.
Tycom president and chief executive officer Neil Garvey said the decision touse Ciena’s optical networking systems was “driven by Ciena’s leading-edgetechnology and our continual push to provide greater value” to customers.
In February, Ciena reported strongresults for the quarter ended in January and boosted its outlook for thenext quarter.
The company said revenue rose more than 130 percent from a year earlier to$352.0 million, while income before payroll tax on stock-option exercisestotaled $54.1 million, or 18 cents per fully diluted share, up from $9.1million, or 3 cents, a year earlier and ahead of analyst per-shareestimate of 15 cents.
“Ciena continues to see robust growth opportunities across its family ofnext-generation intelligent optical networking products,” Ciena chairman andchief executive officer Patrick Nettles said.
Ciena also raised its revenue growth projection for the current year to 85percent over 2000 from 75 percent.
“We expect our business will continue togrow faster than the overall market, provided we execute successfully,” saidNettles.