By Laura Andrews
The building hiatus at Cisco's office park in Boxborough that started in April 2001 is ending, according to Mojgan Khalili, regional spokesperson for Cisco Systems. Khalili said that the exterior and foundations of the buildings are complete so the buildings may look finished, but that work continues on the plumbing, interior work, and all final steps to build out the interiors. She said that the buildings are scheduled to be complete by mid-2003 or early 2004.
A Boston Globe article on February 10 reported that Cisco "halted work on the three buildings last April as a result of losses and stock market hits," and that Cisco's decision to restart construction was another sign that the high-tech sector is preparing for a comeback this year.
However, Cisco is not out of the woods yet, and that could affect its construction plans. According to Khalili, Cisco plans to occupy all of its buildings in Boxborough, although final decisions will depend on what happens in the economy during the next two years. She was not aware of a plan to sublet any of the facilities, or make a business park out of the area. Cisco has facilities in Chelmsford, Acton, Lowell, and Lexington, but according to Khalili, they have not yet decided which employees at which facilities will move to Boxborough. That decision will be made as the time grows closer, she said.
Cisco reported on its first half of fiscal year 2002 on February 19, and the results compare unfavorably to the same period last year. Its recently released financials state, "Actual net income for the first six months of fiscal 2002 was $392 million or $0.05 per share, compared with actual net income of $1.7 billion or $0.22 per share for the first six months of fiscal 2001."
CBS Market Watch reported on February 18 that "Cisco Systems led volumes among the many decliners, slipping 2.6 percent to $16.70." Market Watch also said, "a report in the New York Post again highlights Cisco's use of partnerships in deals."
SmartMoney.com reported on February 22 on the markets' declines. "Much of the pain came from the market's tech giants." After listing IBM's and Computer Associates' problems the site went on: "Similarly, the market witnessed drops in major telecom stocks such as Cisco Systems, which suffered mightily in the wake of a New York Post story about its relationship with a private partnership.