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 October 23, 2001
(Date of earliest event reported) (October 11, 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
(a) On October 22, 2001, the Registrant issued the following press release:
CTC Communications Group Files for United States Patent on its
PowerPath(sm) Network
-CTC's Integrated Communications System is a New Invention-
WALTHAM, MA., October 22, 2001-CTC Communications Group Inc. (NASDAQ: CPTL)-
today announced that it has applied for a United States patent on its
Integrated Communications System, known as the PowerPathSM Network.
The Company's invention is a unique and integrated communications system
(ICS) that combines all voice and data communications on a single systems
architecture and a single connection to the user. It enables communication
between that user and any other person, business, data base or information
source in the world. The overall system integrates three primary sub-systems
that enable voice and data communications at substantially lower cost,
significantly higher functionality and meet or exceed all technical and
operating standards. The invention, although totally different from current
network architectures, is a 100% replacement for these current network
architectures.
Bob Fabbricatore, Chairman and CEO stated, "The Company has always believed
that its unique advanced technology mosaic would enable all
telecommunications services and replace traditional, or legacy, network
infrastructures. Over the past two years, the Company has turned this belief
into reality. This patent application is the culmination of a substantial
and innovative development and integration effort that included an
innovative new network architecture, voice services development and
implementation and, the IS/IT systems that integrate and "glue" it all
together. It is a 100% replacement for today's circuit switched, hybrid and
data network infrastructures and, replaces those infrastructures at
significantly lower capital and operating costs, while delivering higher
functionality and enabling the web-based and e-commerce communications of
the future. It is, the integrated communications system for this century".
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 535,000 access lines as of June 30, 2001.
CTC'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. 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 dial tone local
voice services implementation, the attainment of EBITDA positive results,
improved margins and existing resale customer movement to the network.
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 (e)
www.ctcnet.com
Contact: Alan Russell
CTC Communications
781-466-8731 (t)
arussell@ctcnet.com (e)
www.ctcnet.com
(b) On October 16, 2001, the Registrant issued the following press release:
CTC Communications' CEO Robert J. Fabbricatore Talks to The Wall Street
Transcript
NEW YORK The Wall Street Transcript has published an in-depth interview with
Robert J. Fabbricatore, Chairman and CEO of CTC Communications
(Nasdaq:CPTL). Mr. Fabbricatore discussed in detail the road to becoming an
Integrated Communications Carrier and how CTC's PowerPathSM Network is a
100% replacement for today's legacy voice and data networks.
The entire interview is available free online at
http://www.twst.com/ceos.htm. The following are excerpts from the interview:
Fabbricatore begins with an overview of the Company. "CTC has been in the
telecommunications business since the early 1980's and has been a publicly
traded company since 1986. We have extensive experience and expertise in all
telecommunications voice and data services at all levels within the company.
We pride ourselves on our knowledge of the marketplace, the technology and
what it takes to win."
Fabbricatore explains, "It is important to note that our network is
relatively newly deployed and that only 10% of our 535,000 access lines were
on the network as of June 30th. We will realize significant growth in
margins by moving more of our existing customers on-net. When we move an
existing customer on-net we double our margin for that customer. This is a
significant growth engine for margin and one of the reasons we will attain
EBITDA positive in the December quarter of this year and net income positive
in the subsequent 12-18 months."
Looking forward, Fabbricatore states, "What we are doing right now will
serve us very well as we move into the future. CTC has a unique business
model, a customer-centric culture, next generation technology and prudent
business management skills. We are fully funded and moving rapidly to
profitability, free cash flow and internally funded growth. Our future is
clear and extremely bright. As I look out over the next few years, we will
not require any major course corrections in our product sets, market focus
or in our technology infrastructure."
This interview is part of a 120-page Kaufman Bros., L.P. Emerging
Communications Conference Issue available at
http://www.twst.com/info/info431.htm or by calling 212/952-7433
The Wall Street Transcript does not endorse the views of any interviewees
nor does it make stock recommendations. For subscription information call
800/246-7673.
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 535,000 access lines as of June 30, 2001.
CTC'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. 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 dial tone local
voice services implementation, the attainment of EBITDA positive results,
improved margins and existing resale customer movement to the network.
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: Alan Russell
CTC Communications
781-522-8731 (t)
pitt@ctcnet.com (e)
www.ctcnet.com
(c) On October 11, 2001, the Registrant issued the following press release:
CTC Communications Commits to Seven Year Term at a 35% Discount for "Last
Mile" Broadband Connections to its Customers
Waltham, MA, October 11, 2001-CTC Communications Group Inc. (NASDAQ NM:
CPTL)- announced that it is leasing FCC tariffed T1 digital facilities on a
seven year term to provide the "last mile" connection between its customers
and its PowerPath(sm) Network. In exchange for a seven-year commitment, the
Company receives a 35% discount on these "last mile" T1 facilities.
Within the terms of the seven-year commitment, the Company will receive a
35% discount applied to the month by month tariff price of these FCC T1
facilities. The 35% discount rate is fixed and will be applied to the month
to month rate regardless of any future changes in that rate.
As of June 30, 2001 the Company had 3400 on-net customer locations in
service with "last mile" facilities. The Company expects to have over 6,000
customer locations in service by calendar year end 2001 and over 16,000 in
service by year-end 2002. This 35% discount represents a significant
reduction in the Company's costs for "last mile" access to customers.
Bob Fabbricatore, CTC's Chairman and CEO, stated, "High speed, broadband
customer access to our fiber access points and PowerPath(sm) Network is part
of our core network infrastructure. T1 facilities are our primary vehicle to
provide customer access up to 10 megabits and, will continue as such for the
foreseeable future. Reducing the cost of these access facilities by 35%
increases cash flow and further strengthens our fully funded plan. These
savings will also contribute to attaining positive EBITDA in the December
quarter of this year and positive Net Income in the subsequent 12 to 18
months".
The Company leases T1 broadband facilities from the Incumbent Local Exchange
Carriers (ILECs) to connect its customer's locations to its packet- based
PowerPath(sm) Network. The customer's voice, data and Internet services are
then converged on this single broadband facility and processed by the
Company's advanced technology network. This arrangements results in a 10% to
30% reduction in price to customers and margins in excess of 50% for the
Company.
T1 broadband facilities are the Company's technology of choice for last mile
connection to its customers. They are a proven digital access technology
that is highly standardized and simple to install and maintain. The Company
leases T1 and multiple T1 facilities to provide broadband customer access to
its PowerPath(sm) Network, at speeds of 1.5 to 10 megabits per second.
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 535,000 access lines as of June 30, 2001.
CTC'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. 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 dial tone local
voice services implementation, the attainment of EBITDA positive results,
improved margins and existing resale customer movement to the network.
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.
Finance Contact: John Pittenger
CTC Communications
781-466-1302 (t)
pitt@ctcnet.com (e)
www.ctcnet.com
Media Contact: Alan Russell
CTC Communications
781-466-8731 (t)
arussell@ctcnet.com (e)
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 October 23, 2001.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration