Bloomberg:
Ciena Shares Rise on Expectations of New Contract Announcement
Ciena Shares Rise on Expectations of New Contract Announcement
Linthicum, Maryland, Oct. 30 (Bloomberg) -- Ciena Corp. shares rose as much as 14 percent amid expectations the top seller of equipment to boost capacity of phone networks will unveil a contract with a new customer next week.
Ciena rose 2 1/16 to 17 1/2 in late morning trading of 16.2 million, making it the most-active U.S. stock. Earlier, the shares touched 17 9/16.
Ciena is slowly rebuilding earnings expectations by signing up new customers, after a profit warning and the loss of two contracts led Tellabs Inc. last month to call off its plan to buy Ciena for as much as $7.1 billion. Since then the Linthicum, Maryland-based company has unveiled two new contracts, and analysts expect another could come as soon as next week. ''The company has landed a new carrier relationship they are excited about,'' said Kevin Slocum, an analyst at SoundView Technology Group, who rates Ciena ''hold.''
Ciena spokesman Denny Bilter declined to comment, other than to say the company's always looking for new customers.
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