Light Reading Index Closes Up
The Light Reading Index moved up 6.7 percent today, to 697.00, as traders snapped up bargains before the holiday.
Leading today’s news was New Focus Inc.'s (Nasdaq: NUFO) announcement that it was adjusting the terms of its merger agreement with JCA Technology Inc. to compensate for the recent downturn in its stock price (see New Focus, JCA Amend Merger Terms). The amended terms increase the number of shares New Focus will offer JCA to 10,033,556, or 13.5 percent of New Focus’s equity. New Focus shares traded up 12.32 percent to $29.63.
Ciena Corp. (Nasdaq: CIEN), up 19.52 percent to $71.66, recovered some of the losses it suffered earlier in the week when it announced it would acquire Cyras Systems. (see Ciena To Buy Cyras for $2.6 Billion). Extreme Networks Inc. (Nasdaq: EXTR) also bounced back from hits it took earlier in the week due to analyst downgrades. Also hurting Extreme was the announcement by Foundry Networks Inc. (Nasdaq: FDRY) that it was lowering its earnings estimates, (see Foundry Slammed After Warning), citing a softening in demand for its products. Extreme and Foundry compete in the same space for Layer 3 switches. Extreme was up 15.44 percent to $39.25.
Juniper Networks Inc. (Nasdaq: JNPR) moved up 18.83 percent to $111.63 on news that it continues to erode Cisco’s market share for high-end routers (see Juniper Eats Into Cisco's Lunch).
Brocade Communications Systems Inc. (Nasdaq: BRCD), up 21.64 percent to $83.25, began trading today on a split-adjusted basis and was up 20.37 percent to $82.38. The split was originally announced on November 29.
Other big winners today were MRV Communications Inc. (Nasdaq: MRVC), up 16.38 percent to $12.88; Redback Networks Inc. (Nasdaq: RBAK) up 20.64 percent to $44.94; and Sycamore Networks Inc. (Nasdaq: SCMR), up 15.02 percent to $33.50.
-- Matt Malina, research associate, Light Reading http://www.lightreading.com