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 April 24, 2002
(Date of earliest event reported) (April 24, 2002)
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 April 24, 2002, the Registrant issued the following press release:
CTC Communications Hits the Milestone of Completing Over One Million
Minutes of Voice Traffic Per Day Through its Softswitches
- -The Company's PowerPathSM Network Processes over 400,000 Voice Calls Per
Day, Proving Successful Scalability of Technology-
Waltham, MA, April 24, 2002-CTC Communications (NASDAQ NM: CPTL)
announced today that it has surpassed the milestone of over one million
minutes of voice traffic per day, using the Company's packet-based
PowerPathSM Network. This represents over 400,000 local and long
distance calls processed through the Company's softswitch technology
every business day.
Robert Fabbricatore, CTC Chairman and CEO stated, "We are very pleased
with the progress we have made in confirming the reliability and
scalability of packet-based voice services on our PowerPathSM Network.
Our progress and the acceptance of our customer base is proof again
that our packet switched network solution is a 100% replacement to the
legacy circuit switched networks and was the right choice by CTC over
three years ago. With these timely decisions, we are able to offer our
customers tomorrow's network technology today, as our competitors begin
the unenviable task of transforming their legacy networks to a packet-
based infrastructure."
Fabbricatore concluded, "CTC's customers continue to purchase multiple
services from us because of our ability to converge these applications,
position them for future growth and reduce their telecommunications
costs. As customer acceptance continues, CTC will continue to see
operating margins improve each quarter as we drive towards
profitability."
The Company's PowerPathSM Network is a packet-based network utilizing
technology from Cisco Systems and softswitches from Telcordia
Technologies. Customers access the PowerPathSM Network via a broadband
connection and an Integrated Access Device or IAD, at their own
locations. Once connected, customers have the ability to converge all
of their applications including voice, data and Internet access across
this single broadband connection.
The Company delivers its local dial tone, local voice services and long
distance voice services on the Company's packet based PowerPathSM
Network utilizing softswitch technology. The softswitch processes and
connects voice calls within the PowerPathSM Network as well between the
PowerPathSM Network and the Public Switched Telephone Network. On-net
customers can place and receive voice calls to and from any person
served by any carrier in the world, whether located next door or
continents away.
Customers that select CTC have realized savings up to 10-40% as
compared to the costs of using multiple carriers to accomplish similar
results. CTC achieves incremental margins in excess of 50% on these
services due to the operating and cost efficiencies of its packet-based
PowerPathSM Network. The Company is accelerating the process of
migrating its existing 15,000 business customers to the PowerPathSM
Network. These customers represent over 60,000 locations in the
Northeast and Mid-Atlantic states.
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, called the PowerPathSM 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'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
increased Company margins, cost savings for customers and the continued
migration of customers to the PowerPathSM 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 10-Q. 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 April 24, 2002.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration