Qwest Quakes on Quarterly Qualms

Network capacity sales came back to haunt Qwest (Q Quote) in the third quarter, causing CEO Joe Nacchio to raise the ghoulish specter of 75% spending cuts next year.

Quit It Qwest keeps falling

In noting the prospect for even deeper spending cuts in the coming year, Nacchio sought to reassure analysts and investors who are increasingly concerned about the debt-laden, cash-burning company's prospects during a deepening recession. But coming on top of Qwest's stunningly weak results, Nacchio's brash words were received as another signal to head for the exits. Qwest, already at a 52-week low and more than 70% off its high for the year, plunged 20% Wednesday to $12.72.

Flagging

Critics, including TheStreet.com's own Detox, have been waving a red flag over Qwest's reliance on so-called indefeasible rights of use, or IRU, agreements. The suspicion has been that these sales of network capacity to other phone companies have padded Qwest's results disproportionately because of the way they're accounted for. Qwest didn't immediately return a call seeking comment. ...