ONI Systems gains on Qwest deal

ONI Systems Corp. (Nasdaq: ONIS) jumped 13 percent Thursday after it announced a multi-year contract win with Qwest Communications International Inc. (NYSE: Q).

Shares were up 12 7/8 to 108 3/8. ONI's stock has been faring well since it beat estimates in the first quarter. Qwest shares rose 1/8 to 48 11/16.

The deal gives Qwest optical networking equipment that will support the delivery of high-speed, local broadband connectivity to customers in a major metro market. Qwest intends to build 25 city networks by the end of 2001.

Qwest will use ONI's Dynamic Transport System (DTS), the first systems of which will ship this quarter.