SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report June 27, 2001
(Date of earliest event reported) (June 20, 2001)
CTC COMMUNICATIONS GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-27505 04-3469590
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
220 Bear Hill Rd., Waltham, Massachusetts 02451
(Address of principal executive offices) (Zip Code)
(781) 466-8080
(Registrant's telephone number including area code)
(Former name or former address if changed since last report)
Item 5. Other Events
On June 20, 2001, the Registrant issued the following press release:
CTC Communications Completes Construction of its Class A Data Center
Building and Places Network "SuperNode" in Service
- -Multi-Use Class A Building Reduces Network Costs and Generates New
Revenues-
Waltham, MA., June 20, 2001-CTC Communications (NASDAQ NM: CPTL)- today
announced that it has completed construction of its Class A Data Center
building in Waltham Massachusetts and placed it's second Network SuperNode
in operation. The new building has been dubbed CTC's Advanced Technology
Center (ATC) and is a 50,000 square foot, multifunctional Class A building
housing network switching and fiber transmission equipment, applications
development platforms and a data center for CTC retail business customers.
These three primary uses of the ATC enable CTC to reduce network costs,
provide exceptional speed to market for new products and applications and,
facilitate CTC customer outsourcing of mission critical equipment and
applications. The new Class A building provides a secure, high tech,
conditioned computer environment with redundant environmental and power
systems. It was completed on budget and within CTC's fully funded business
plan.
CTC has already installed and placed in operation its second SuperNode in
the new Waltham Class A building. The Waltham Supernode is fully redundant
and interactive with the first SuperNode in Springfield Massachusetts. Each
SuperNode is a major regional switching and transmission center that
includes high speed packet switches, softswitch voice processors, fiber
transmission hubbing and operations systems. "These two regional centers
provide the quality, reliability and redundancy expected and required of a
carrier grade network" stated Russ Oliver, CTC's Vice President Operations.
They also enable scope and scale operations efficiencies that drive down
provisioning, operating and capital costs. SuperNode efficiencies are one of
the major contributors fueling the company's attainment of EBITDA positive
results by year-end 2001".
The ATC also provides Class A security, room for growth and efficient
interconnection for CTC's current and future packet based products and
applications. The ATC will be home to the company's current i-mail and
Internet Service Provider (ISP) product lines, provide the platform for
future applications development in the unified messaging and e-commerce
arenas and provide a single, high-speed, interconnection point for
Application Service Provider (ASP) partners to provide products that CTC
customers desire, but CTC chooses not to develop.
"The efficiencies and speed to market associated with the ATC are
exceptional and unique to our packet-based network architecture" stated
David Mahan, CTC's Executive Vice President. "Voice and Data Products and
applications are immediately available to all on-net customers and do not
require additional deployment, facilities or "truck rolls". The application
is simply turned on with an electronic command to the Integrated Access
Device (IAD) at the customer's location. Speed to market is exceptional,
provisioning is near real time and the incremental cost to deliver the
product to the customer is close to zero. These attributes underscore why
CTC's PowerPath(sm) network is the most capital and operating efficient
network technology architecture in the Industry."
The ATC will also provide "classic" data center based products and services
such as colocation, hosting and remote storage as well as customized
products for CTC retail business customers. The company does not plan to
offer these products to other carriers or to develop a wholesale line of
business. "Our current base of 14,000 medium to large business customers is
a fertile marketplace for these types of services", stated Jeff Lavin, CTC's
Vice President Marketing. A 24 by 7 by 365 secure and fully redundant Class
A data center environment is a desirable and cost effective alternative to
on-site arrangements for customer's mission critical applications and data
storage needs. This Class A environment coupled with CTC's high bandwidth
networking is a natural for our customers and initial interest in these
applications is high. I anticipate that these services will contribute
substantially to CTC's revenue and margin results especially as we move into
2002".
About CTC Communications
CTC is a rapidly growing "next generation" Integrated Communications Carrier
utilizing advanced technology and providing its customers with converged
voice, data, Internet and video services on a broadband, packet-based
network. The Company serves medium and larger business customers from
Virginia to Maine, which includes the most robust telecommunications region
in the world-the Washington D.C. to Boston corridor. CTC was managing more
than 494,000 access lines as of March 31, 2001.
The Company's Cisco Powered IP+ATM packet network and its 450 member sales
and service teams, provide contiguous marketing and technology coverage
throughout the Northeast and Mid-Atlantic States. The Company, through its
dedicated commitment to exceptional customer service, has achieved an
industry-leading market share in the Northeast and an access line retention
rate in excess of 99 percent. CTC can be found on the worldwide web at
www.ctcnet.com.
The statements in this press release that relate to future plans, events or
performance are forward-looking statements that involve risk and
uncertainties that could cause actual results to differ materially from
those reflected in the forward-looking statements including the deployment
and activation of SuperNodes, reduced operating costs, attainment of
positive EBITDA and introduction of new products. Readers are, accordingly,
cautioned not to place undue reliance on these forward-looking statements.
Additional information about these risks and uncertainties is set forth in
the Company's most recent report on Forms 10-K and 10Q. CTC undertakes no
obligation to release publicly the results of any revisions to these
forward-looking statements that may be made to reflect results, events or
circumstances after the date hereof.
# # #
Contact: John Pittenger
CTC COMMUNICATIONS
781-466-1302 (t)
pitt@ctcnet.com
www.ctcnet.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized on June 27, 2001.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration