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Byline: MIKE ANGELL
Is optical telecom gear maker Sycamore Networks Inc. ready to branch out?
A highflying stock in 1999, Sycamore enjoyed early success with customers like Williams Communications Group Inc., 360networks Corp. and Enron Corp.
Those companies hoped to create a new industry: bandwidth trading. Basically, they would buy and sell high-speed optical connections needed for the broadband boom. Sycamore supplied the gear to build those networks.
The boom went bust. Enron and 360networks filed for bankruptcy protection. Williams has not turned a profit since it began.
Sycamore did grab healthy overseas customers, such as Japan's biggest phone company, NTT Communications, Dutch firm KPNQwest and U.K. mobile firm Vodafone Group. It also got a deal with a big U.S. customer, BellSouth Corp.
But Sycamore will have to land more big customers to pump up sales and earnings again.