) and Ciena (CIEN
) with buy.
Analyst Richard Schafer says the optical networking area of switching presents the greatest value proposition to carriers as they re-architect their networks. He suggests focusing on these next-generation optical networking companies: Ciena, a long-term winner in his view with its end-to-end optical strategy; Tellium (TELM
) (continues his buy rating), a pure-play on high growth core optical switch segment; Corvis Corp. (CORV
) (continues his buy rating), the leading next-generation optical transport company; and ONI Systems, the No. 2 overall player in the nascent/booming segment. For longer term, Schafer likes Sycamore Networks (SCMR