Harmonic gains on AT&T deal

Jan. 2, 2002 4:43 p.m. PT

Harmonic Inc. (Nasdaq: HLIT) rose 20 percent Tuesday after announcing that AT&T's (NYSE: T) Broadband division will buy its optical nodes and DWDM transmission platforms from for use in cable plant upgrades throughout the United States.

Shares were up 1.81 to 11.81. The stock crumbled in early October after it warned third quarter revenue would be below expectations, and it would report a loss rather than a profit.

Harmonic's METROLink DWDM (dense wavelength division multiplexing) system, PWRBlazer nodes, and digital DWDM return transmitters enable AT&T Broadband to increase bandwidth capacity for two-way communication.

Financial details of the deal were not released.