Ciena Corp. shares rose the most in more than four months after Verizon Communications Inc. announced plans to use Ciena switching technology in an expansion of the phone company’s fiber-optic network.
Ciena, a maker of networking-equipment in Linthicum, Maryland, advanced 8.6 percent to close at $13.10 in New York. The shares were little changed this year before today.
Verizon picked Ciena’s 5430 optical switch to help upgrade its network by increasing speeds and allowing it to be expanded more easily, according to a statement today. The move solidifies Ciena’s position as a top supplier of optical-networking equipment, which transmits data in the form of light over fiber strands. The deal also will help boost profit margins, said Kevin Dennean, an analyst at Citigroup Inc. in New York.
“The announcement is significant on multiple fronts,” he said in a research note. Similar deals at other carriers are now more probable, Dennean said.