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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
Date of Report (Date of Earliest Event Reported) August 25, 1997
STARTEC GLOBAL COMMUNICATIONS COPORATION
(Exact name of Registrant as Specified in its Charter)
MARYLAND 0-23087 52-1660985
(State or Other (Commission (IRS Employer
Jurisdiction of File number) Identification No.)
Incorporation)
0411 Motor City Drive, Bethesda MD 20817
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: 301-365-8959
____________________________________________________________
(Former Name or Former Address, if Changed since Last Report)
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Item 5. Other Events.
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The accompanying text of a press release by the Registrant relating to
its third quarter results of operations was released by the Registrant on
November 10, 1997.
Item 7. Exhibits.
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99. Press Release dated November 10, 1997.
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SIGNATURES
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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.
STARTEC GLOBAL COMMUNICATIONS COPORATION
By: /s/ PRABHAV V. MANIYAR
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Senior Vice President, Chief Financial
Officer and Secretary
DATE: November 14, 1997
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NEWS
FOR IMMEDIATE RELEASE
COMPANY CONTACT: STARTEC GLOBAL COMMUNICATIONS CORPORATION
Prabhav Maniyar
Senior Vice President and Chief Financial Officer
301-365-8959 ext. 315
November 10, 1997
STARTEC GLOBAL COMMUNICATIONS CORPORATION ANNOUNCES RECORD NET REVENUES AND
NET INCOME FOR THIRD QUARTER 1997
Bethesda, Maryland - Startec Global Communications Corporation (NASDAQ: STGC)
announced today record net revenues and net income for the quarter ended
September 30, 1997. Third quarter net revenues increased 236.6% to
approximately $25.8 million, compared to approximately $7.7 million in the
same period a year ago. Third quarter net income increased to approximately
$413,000, compared to a net loss of approximately $815,000 in the same period
a year ago. Net income per share increased to $0.07 in the third quarter,
compared to a net loss per share of $0.14 in the same period a year ago.
Together with the exercise of the overallotment option in November 1997, the
Company's initial public offering placed 3,277,500 shares, yielding net
proceeds to the Company of approximately $35 million. The Company intends to
use the net proceeds of this offering to acquire cable facilities, switching,
compression and other related telecommunications equipment; for marketing
programs; to pay down certain amounts due under its existing credit facility;
and for working capital and other general corporate purposes.
Ram Mukunda, Startec Global Communications Corporation's Chairman and CEO,
said "we have continued to expand our global network by acquiring undersea
fiber optic cable capacity. In our new facility in New York City, we are
installing a state of the art international gateway, which will be operational
in January 1998. This expansion of our network capacity will afford us the
opportunity to better serve our customers and penetrate new ethnic markets."
Startec Global Communications Corporation is a facilities-based international
long-distance telephone carrier which markets its services to select ethnic
U.S. residential communities having significant international long distance
telephone usage. The Company also sells its international long distance
services to other international long-distance carriers.
Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: Investors are cautioned that the statements in the release that are
forward-looking are based on current expectations and are not strictly
historical statements, which may differ materially from actual results. Not
strictly historical statements include, without limitation, those regarding
management's plans, objectives and strategy for future operations, product
plans and performance, management's assessment of market factors, and future
financial performance. Among factors that could cause actual results to
differ materially are changes in businesss conditions, changes in the
telecommunications industry and the general economy. These and other factors
are discussed more fully in the "Risk Factors" section of the Company's
Registration Statement No. 333-32753 which was declared effective by the SEC
on October 9, 1997.
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STARTEC GLOBAL COMMUNICATIONS CORPORATION
Unaudited Statements of Operations
(in thousands, except per share amounts)
THREE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996 1997 1996
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Net Revenues $25,757 $7,652 $54,593 $20,859
Cost of Services 22,668 6,763 47,919 19,152
Gross Margin 3,089 889 6,674 1,707
General and administrative expenses 1,820 1,370 4,281 2,743
Selling and marketing expenses 391 166 696 319
Depreciation and amortization 140 93 354 238
Income (loss) from operations 738 (740) 1,343 (1,593)
Interest expense 326 80 578 198
Interest income 9 5 15 14
Income (loss) before income
tax provision 421 (815) 780 (1,777)
Income tax provision 8 --- 16 ---
Net income (loss) $ 413 $ (815) $ 764 $(1,777)
Net income (loss) per common and
equivalent share $ 0.07 $(0.14) $ 0.13 $ (0.31)
Weighted average common and
equivalent shares outstanding 5,796 5,796 5,796 5,796
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