Shifting into fiber-optic overdrive
With an eye toward the future of fiber optics, Cisco Systems said it is spending about $100 million on its new Salem, N.H. plant that makes gear for fiber-optic networks.
The company also plans eventually to share the space with parts suppliers to speed up production, Cisco officials said. Cisco, which unveiled the plant purchase in May without disclosing the price, said it's spending about $45 million to buy the land and $55 million for capital improvements.
Cisco's optical-networking equipment business is growing fast, as reflected by last year's $7.15 billion acquisition of Cerent.
Cisco also announced this week that its order backlog more than quadrupled to $3.83 billion from a year-earlier $922 million blamed on component shortages.