Cisco to invest up to $4B in Ontario; shares add to losses

Just four months after Cisco (CSCO -1%) announced it's cutting 4K jobs, the networking giant says it plans to invest up to $4B over the next ten years in Ontario. (PR)

Cisco will add up to 1.7K jobs in the Canadian province over the next six years, with "a focus on R&D," and could grow its Ontario headcount by up to 5K by 2024.

Shares are adding to yesterday's losses, as investors continue to mull the growth forecast cut and downbeat emerging markets commentary provided at Cisco's analyst meeting. Today's drop comes even though a number of analysts are defending the company.

Raymond James (Outperform) is upbeat about Cisco's efforts to create products that enable more software-centric networks, and likes its low valuation (7x EPS exc. cash).

Also: Cisco stated at its meeting (transcript) it won't abandon its struggling set-top business, in spite of growing calls to do so. The company argues keeping the business is crucial to maintaining its ties with pay-TV providers.

Cisco also declared its pipeline of $1M+ U.S. enterprise deals is improving, and suggests the business is bottoming the same way its commercial (SMB) ops did a few quarters ago.

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