Cisco Could Lose $200 Million on Loan

Cisco Systems Inc. stands to lose at least $200 million if fiber-optic network builder Velocita Corp. files for bankruptcy, analysts said. San Jose-based Cisco invested $485million in cash and loans last year to help launch Velocita.

In February, the unprofitable Virginia-based company said it would fire 75% of its 240 workers and was considering “strategic alternatives.”

Cisco never disclosed in regulatory filings its $200-million investment in or its $285-million loan to Velocita. Cisco shares fell 72 cents to $16.02 on Nasdaq.