WorldCom Spending Pullback Adds Ballast to Sinking Optical Stocks

Thursday brought more bad news for the reeling optical sector, as another network builder trimmed its spending outlook and optical-equipment stocks continued to plunge.

WorldCom (WCOM Quote) told analysts on a third-quarter conference call Thursday morning it will cut back next year on its network expansion efforts. The company expects to spend $9 billion this year, and probably will fall well short of that total next year. WorldCom was off $2.31, or 9.2%, at $22.94, putting it near its 52-week low of $20.19.

The Jackson, Miss.-based phone and Internet service provider said it will offer more detailed guidance on spending and revenue when it unveils its restructuring plans next week. But CFO Scott Sullivan said spending "will be lower" in 2001. ...