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To: Dealer who wrote (35364)	4/5/2001 4:32:20 PM
From: Dealer	Respond to of 65232

CSCO--WinStar to Cut 2,000 Jobs, Halt Expansion NEW YORK (Reuters) - Telecommunications upstart WinStar Communications Inc. (NasdaqNM:WCII - news) on Thursday said it would cut its work force by 2,000 employees, or about 43 percent, and halt its domestic and international network expansion in order to save money. WinStar, whose stock price has plunged 99 percent over the past year on fears that it may run out of cash, said it now will focus on its existing markets and network operations. The company uses a nascent fixed-wireless technology that transmits voice and high-speed data service using radio signals rather than fiber-optic cables or telephone wires. It has about 5,400 buildings directly connected to its network and can reach up to 150,000 businesses. WinStar said it continues talks on ``several material transactions,'' but declined further comment. Voice and data services company Qwest Communications International Inc. (NYSE:Q - news) on Thursday, dismissing market rumors, said it had no plans to buy or invest in WinStar or any other provider of fixed-wireless services. New York-based WinStar is just one of several emerging communications companies hurt by a slowing economy, tightening capital markets and stiff competition. Rival fixed-wireless firm Teligent Inc. (NasdaqNM:TGNT - news) recently got a ``going concern'' warning from its auditors, who had ``substantial doubt'' about the company's ability to stay in business. WinStar has about 4,700 employees. The staff cuts are effective immediately. On Wednesday, Reuters reported that WinStar could announce extensive layoffs as early as Thursday. Its stock, down 99 percent over the past year, traded at 3/8, down 1/32, in afternoon dealings on Nasdaq. WinStar debt trades at 6 cents on the dollar. Although WinStar is backed by deep-pocketed investors and partners, traders said there is concern that the company may buckle under its massive debt load. For the quarter ended Sept. 30, 2000, WinStar had $3.5 billion in long-term debt and total cash of $302.7 million, according to regulatory filings. WinStar in November landed a $1.02 billion financing package, including private equity from software leader Microsoft Corp. (NasdaqNM:MSFT - news), personal computer maker Compaq Computer Corp. (NYSE:CPQ - news) and the CS First Boston investment banking unit of Credit Suisse Group (CSGZn.S), as well as vendor financing from Compaq and computer networking firm Cisco Systems Inc. (NasdaqNM:CSCO - news) WinStar said earlier this month it would not seek to raise additional capital through debt or equity this year due to the weak financial markets. It had said it could seek vendor financing pacts and sell excess capacity on its networks in the next few months.