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.