Qwest CEO Tackles Finances

Notebaert, previously president and CEO of Tellabs, last week was named to replace Joseph Nacchio, who resigned. Laden with debt, Qwest is under investigation by the Securities and Exchange Commission and has seen its credit ratings reduced to junk status. Its stock hovers at around $5, down from a 52-week high of about $32.

In a conference call with analysts, Notebaert said his immediate goal is to bolster Qwest's balance sheet and that it was premature to address other possible management changes.

"The last place I worked, we had zero debt and a billion in cash. Now I am focusing on [Qwest's balance sheet," he said. "It is absolutely critical that we work hard on the balance sheet, reduce our debt and optimize our cash flow."

Notebaert said Qwest is scrutinizing its assets and assessing their performance. Qwest's wireless and directory businesses are up for sale, and it is mulling potential sell-offs of overseas assets, he said. Qwest also plans to develop a new marketing strategy and take steps to boost its credibility with Wall Street, he added.

Paul Melton, executive vice president of marketing at Global Linking Solutions, a Weston, Fla.-based service provider, said Qwest's changing of the guard will have little impact on his business "as long as their philosophy is still geared toward the channel."

Yet one Qwest partner, who requested anonymity, said, "Qwest is such a monster to turn around at this point that I don't think [Notebaert alone can do it. What is needed is a new team of leadership. What they need to do is focus on the turnaround rather than trying to be innovative."