I haven't seen the contract, but if it's anything
like the State of Louisiana and the State of Texas
contracts Larscom has enjoyed ,it will be like a mail run
of orders for the duration of the network expansion.
It's all good news. What it does is build good base
business and free up time for the salespeople to go out
and get new customers. It's not quite like getting
awarded a contract for building airplanes or power plants
where there is some huge project to manage profitably.
It means the products are specified for certain
functions in new and upgraded installations and that
Larscom will get the orders as the installations require.
PS somebody traded a large block (50K shares?) when
it dipped below 2 today. Could be loading up for a
positive earnings announcement for 3rd quarter.