Market Update: LR Index Creeps Forward
The Light Reading Index had another light day of trading as investors await the Federal Reserve’s decision tomorrow on whether or not to lower interest rates. The Index closed up 7.68 (1.03%) to 751.06.
Leading the news today was Redback Networks Inc.'s (Nasdaq: RBAK) anouncement of a new metro box, the SmartEdge 100 (see Redback's Got a Mini-Me, Too). The product is an add-drop Sonet multiplexer that is designed to extend the reach of high-capacity networks farther out from the central office to smaller telco offices and office buildings. Despite the news, Redback closed down 1.37 (2.95%) to 45.25, possibly on profit-taking after yesterday's 10 percent run-up.
In other news: Brocade Communications Systems Inc. (Nasdaq: BRCD) took a hit as Goldman Sachs & Co. (NYSE: GS) analyst Laura Conigliaro said its high growth rate will be trending down, according to Briefing.com. Brocade will report its earnings on February 8. The stock closed down 6.44 (6.13%) to 98.50.
Ciena Corp. (Nasdaq: CIEN) announced a deal with MetroRED Telecom Group in Brazil for its CoreStream DWDM transport gear (see Ciena Goes Brazilian). The equipment will be used to connect MetroRED POPs in São Paulo and Rio de Janeiro. The deal could have potential for bigger wins for Ciena as MetroRED has POPs in Mexico and Argentina as well. Ciena would not disclose the terms of the deal.
MetroRED is Ciena’s second announced customer in South America since it opened its office in Miami last year to target the Latin American market. Ciena closed up 3.88 (4.12%) to 98.00.
Lucent Technologies Inc. (NYSE: LU) announced today that it had completed the installation of its DWDM equipment and amplifiers at NTT Corp. of Japan (see Lucent Installs C&L-Band System for NTT). The WaveStar OLS 400GL DWDM system coupled with Lucent’s L-Band amplifier allows NTT to transmit signal across both the C and L bands, thereby increasing the capacity of its networks. It is the first such system lit up by Lucent. The company closed up 0.58 (3.22%) to 18.57.
After the markets closed New Focus Inc. (Nasdaq: NUFO) reported stellar earnings and raised guidance on revenues for 2001 to $240 million from $150 million (seeNew Focus Ups Forecast). Revenues were $33.9 million for the quarter, up 52 percent from $22.2 million last quarter. Pro forma net income was $2.6 million or 4 cents per share, much better than the expected loss of 3 cents per share. Shares were up 5.93 (12%) to 55.31, in after-hours trading on Island ECN.
-- Matt Malina, research associate, Light Reading http://www.lightreading.com