Corning, Cisco to Develop Optical Networking Products

Cisco(CSCO Quote) and Corning(GLW Quote) agreed to jointly develop optical equipment for the Internet.

The companies didn't disclose the financial terms of the deal, but said the agreement, which integrates Corning's optical fiber and photonic products with Cisco's optical networking products, aims to speed the deployment of optical networks.

Cisco and Corning will form teams to develop pre-engineered optical products. In addition, Corning will supply optical amplifiers to Cisco.

Shares of both companies were recently higher, with Cisco climbing 3.5%, or $1.75, to $52.13 in Nasdaq trading, while Corning rose 9.3%, or $5.50, to $64.50 on the New York Stock Exchange.

On Oct. 26, Corning said it would buy Cisco's 10% stake in the optical components business of Italy's Pirelli for Corning stock. In September, Corning agreed to buy Pirelli's 90% stake in the business for $3.6 billion.