The bulk of that cut will fall on data equipment spending -- bad news for network-router suppliers Juniper ( JNPR ) and Cisco ( CSCO ). WorldCom also cleared the way to take a $15 billion to $20 billion charge in the first quarter to account for bubble-era acquisitions it overpaid for with its own stock. "It wasn't a great quarter by any means," says RBC Dominion Securities analyst David Bank, who has no rating on WorldCom and a hold on Sprint and Qwest undefined. "But hopefully we are getting to the point where there's not a lot more bad news left to come out." WorldCom used its earnings conference call to address the financing and accounting concerns that had whacked half the value out of the stock since the year's start. "They did a good job of making their case that the financial collapse rumors are nonsense," says accounting watchdog Glenn Reynolds of CreditSights, a New York debt research shop."They are overleveraged. Their core business is under pressure. They may end up as acquisition fodder.