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Generation 'D' meant disappointment on Thursday as WorldCom [WCOM] announced lower- than-expected third-quarter revenue figures, especially in its UUNet division.

Overall, the company's revenues rose 10.7 percent to $10.0 billion, but some analysts expected figures of about $10.5 billion.

Some of that shortfall was due to "significantly slower-than-expected revenue growth in the Internet UUNet division of 26.5 percent, well below our 37 percent estimate and (second quarter) 40.2 percent growth," wrote CS First Boston's Dan Reingold in a research report.

Reingold said WorldCom's flat Internet revenues for the third quarter were "startling."

WorldCom attributed the disappointing sales figures to price pressure in its dial-up Internet and long distance sectors. The company could not be reached for comment on whether or not it has plans to spin off its long distance business or create a tracking stock, similar to a move announced yesterday by AT&T [T].

The only good news in the third quarter report was that WorldCom's international sales grew a healthy 42 percent, fueled primarily by strong European sales.

WorldCom said in its earnings report that it expects stiff pricing competition in the long distance market to continue for the next few quarters.

# posted by Medical Information : 5:11 AM