Ciena lands another European contract French company buys network equipment; Telecommunications


Ciena Corp. said yesterday that it has won a contract to provide network equipment to French telecommunications company Telecom Developpement. Linthicum-based Ciena said the five-year deal is worth less than $10 million but would not disclose its exact value.

The contract marks another step in Ciena's growth in Europe. Since April, the company has landed three new European contracts to supply dense wavelength division multiplexing equipment, which expands the capacity of communications networks.

To support its European activity, Ciena is opening a technical and sales center in England.

Ciena, which is making final its $6.9 billion merger with Tellabs Inc., will fulfill the Telecom Developpement contract with another French company, CS Telecom France. Under the terms of the contract, Ciena will provide its MultiWave Sentry and MultiWave Firefly products.

The equipment has been shipped and will be deployed immediately. The system will begin handling traffic by fall. Ciena's equipment will be the first commercial dense wavelength division multiplexing system installed in France.

Ciena spokesman Denny Bilter said the contract is especially welcome because it gives Ciena a foothold in the home of Alcatel Alsthom SA, one of Ciena's rivals in the communications equipment market.

"This is Alcatel's backyard," Bilter said. "This is a huge moral victory for an American company."

Ciena shares fell $1.5625, to $70.0625, yesterday on the Nasdaq stock market.

Pub Date: 6/26/98

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