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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
December 18, 1998
Date of Report (Date of earliest event reported)
CHOICETEL COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
MINNESOTA 0-23017 41-1649949
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
9724 10TH AVENUE NORTH
PLYMOUTH, MINNESOTA 55441
(Address of principal executive offices)
(612) 544-1260
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
ChoiceTel Communications, Inc. announced fourth quarter revenue
shortfall.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Filed herewith is the following exhibit:
99 Press release of December 16, 1998, a copy of which is filed herewith as
Exhibit A.
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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 thereunto duly authorized.
CHOICETEL COMMUNICATIONS, INC.
(Registrant)
Dated: December 18, 1998 By /s/ Jack S. Kohler
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Jack S. Kohler
Vice President and Chief Financial Officer
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EXHIBIT A
FOR RELEASE AFTER 3:30 p.m. CENTRAL STANDARD TIME
Contact: Jeff Paletz, President, ChoiceTel Communications, 612-544-1260
Press Release: December 16, 1998
CHOICETEL ANTICIPATES FOURTH QUARTER SHORTFALL
ChoiceTel Communications, Inc. announced today that it has experienced a decline
in fourth quarter revenues to date in its primary pay phone markets in
Minneapolis/St. Paul and in the northwest United States.
Revenues from pay phone operations declined approximately five percent in
October and thirteen percent in November over revenues during the comparable
periods in 1997. The Company anticipates that December revenues may be down by
approximately thirteen percent from December 1997. As a result, the Company
anticipates a loss from operations in the fourth quarter.
The Company has initiated a review of all underperforming phones in its system,
expects to implement a plan to reduce expenses in all areas of its operations,
and has contracted to convert 750 of its 2,000 Minnesota-based phones to a new
line provider and thereby reduce its monthly line costs on those phones by about
25%.
The Company attributes the downturn in pay phone usage primarily to the
proliferation of low-cost cell phones and PCS devices and heavily-promoted low
per-minute usage rates being offered by various providers. Such promotions have
been particularly strong during the quarter in ChoiceTel's Twin Cities' market.
Results in the fourth quarter are also impacted by the continuing initial
build-out expenses in establishing the Company's Puerto Rico pay phone
network. To date, the Company has signed contracts to install approximately
2,000 pay phones in Puerto Rico, of which approximately 280 have been placed
in service.
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