ONI Systems announced Thursday that it has been supplying optical gear to telecom carrier PalmettoNet since the fourth quarter of last year. PalmettoNet, a so-called carrier's carrier that provides telecom lines to other carriers, has already plugged in ONI equipment in Raleigh and Charlotte, N.C., and Greenville, S.C. The company plans to install more ONI gear in the Carolinas by the end of this year.
ONI told investors last week that it will not make its earnings and revenue targets for the first quarter because of diminished customer spending, which has rocked the telecom equipment sector. ONI said last month that it aims to merge with Ciena, another beleaguered equipment maker that announced on Tuesday that it plans to lay off 650 employees, or 22 percent of its work force.