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 January 20, 1999
(Date of earliest event reported) (January 20, 1999)
CTC COMMUNICATIONS CORP.
(Exact name of registrant as specified in its charter)
Massachusetts 0-13627 04-2731202
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
360 Second Ave., 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 January 20, 1999, the Registrant issued the following press release:
"CTC Communications Corp Announces a Record 60% Sequential Increase in Access
Lines in Service
WALTHAM, Mass.-- Jan. 20, 1999--CTC Communications Corp. (NASDAQ:CPTL) today
announced that it had provisioned a record 38,878 access line equivalents
("ALE's") for the quarter ended December 31, 1998, bringing total ALEs in
service as of December 31, 1998 to 103,272. This represents a 60% sequential
growth rate in total ALEs in service from the quarter ended September 30,
1998. CTC further reported that it experienced the strongest growth in data
ALEs with an approximately 67% sequential growth rate from the prior quarter
which brings data ALEs in service to 19,638, or 19% of total ALEs as of
December 31, 1998.
Robert Fabbricatore, Chairman and Chief Executive Officer of CTC, stated "We
are pleased with the growth in access lines equivalents in CTC's first twelve
months as a Competitive Local Exchange Carrier ("CLEC"). Based on a review of
publicly available information, Management believes that these production
numbers compare favorably to those of any CLEC in their first year of
activity, especially CTC's penetration of data services. These results are
particularly noteworthy, given the restraints Bell Atlantic has put in place
to thwart competition and limit customer choice. Absent these Bell Atlantic
restraints, Management believes that CTC's equivalent access line performance
would have been significantly greater. Due to these restraints, the customers
represented by these 100,000 lines are primarily new relationships for CTC.
This helps to put into perspective the acceptance in the marketplace of our
solutions-oriented, customer-centric telecom management approach as well as
the effectiveness of our sales and services teams, most of whom gained
considerable experience in selling and servicing complex local services
during the 14 years CTC acted as an agent."
Fabbricatore further stated that, "We have directed our sales force to begin
focusing on data-intensive, multi-location, medium to larger-sized customers
as they are ideal candidates to move onto our packet-switched, Integrated
Communications Network ("ICN") which will be fully operational later this
summer. The response has been overwhelming with eleven hospitals and many
multi-location regional businesses moving to CTC in the last quarter. By pre-
selling our network in this manner we expect to be able to move target
customers on-net more quickly than would otherwise be possible. Furthermore,
as we move into 1999 and receive regulatory relief from state public utility
commissions on the issue of contract termination penalties which Bell
Atlantic has illegally imposed on customers, we expect to be able to move
over significant numbers of the approximately 280,000 access lines we managed
as an agent. With an average of 44 lines per customer and over 45% of
locations utilizing data services, this former agency base has numerous
excellent candidates for our on-net services."
As previously reported, CTC began deploying Cisco Systems, Inc. wide area
IP+ATM switches in December 1998 and expects to have its initial hub sites
installed and interconnected by the end of March, 1999. Beginning in April,
CTC will begin transitioning its 25 branch offices as well as selected
customers on-net for full beta testing. CTC plans to begin transitioning its
broader customer base on-net later this summer.
CTC is a rapidly growing provider of integrated communications solutions to
medium and large sized business customers in the Northeastern U.S. It
provides an extensive array of voice and data services including local, long
distance, frame relay, Internet access, and other advanced data services. The
Company markets its services through its 175 member direct sales force
located in 25 branch offices throughout Maine, New Hampshire, Vermont,
Massachusetts, Rhode Island Connecticut, New York and Maryland. Company
headquarters are in Waltham, Massachusetts and 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, including statements relating to
operations, the timing of both the network deployment and the transition of
CTC customers to the network, the timing of regulatory relief and
expectations with respect to future line growth. These statements involve
risk and uncertainties that could cause actual results to differ materially
from those reflected or implied in the forward-looking statements. Readers
are, accordingly, cautioned not to place undue reliance on these forward-
looking statements, which speak only as to the date hereof. Additional
information about these risks and uncertainties is set forth in the Company's
most recent report on Form 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.
CONTACT: CTC Communications
John D. Pittenger, (781) 466-1302
http//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.
CTC COMMUNICATIONS CORP.
(Registrant)
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President,
Finance and Administration
January 20, 1999