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:
August 24, 1999
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(Date of earliest event reported)
Electric Lightwave, Inc.
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(Exact name of Registrant as specified in charter)
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Delaware 0-23393 93-1035711
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
4400 NE 77th Avenue, Vancouver, WA 98662
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(Address of principal executive offices) (Zip Code)
(360)816-3000
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(Registrant's telephone number, including area code)
No change since last report
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(Former name or address, if changed since last report)
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Item 5. Other Events.
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This report is being filed to make available the following press release dated
August 24, 1999.
For Immediate Release News Release
Contacts:
Enid Lamey Jack Hardy
Electric Lightwave Inc. Electric Lightwave Inc.
(360) 816-4682 voice (360) 816-3602 voice
(800) 368-9102 pager (800) 391-3267 pager
[email protected] [email protected]
www.eli.net www.eli.net
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Electric Lightwave's Voice Solutions Division to dissolve Nov. 1
Company fine tunes business strategy to accelerate EBITDA profitability
next year; ends prepaid calling card and videoconferencing services
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VANCOUVER, Wash. -- August 23, 1999 -- Electric Lightwave Inc. (Nasdaq:
ELIX), a top integrated communications provider, today announced that its Voice
Solutions division, which includes prepaid calling cards and videoconferencing,
will dissolve November 1.
Electric Lightwave's decision to disband its Voice Solutions division is
part of the company's business strategy to accelerate EBITDA profitability next
year. The company plans to continue increasing revenues through effective asset
utilization in its existing markets. As a result, Electric Lightwave expects to
improve its operational competencies that can support and sustain rapid growth
as it moves closer to completing one of the nation's largest SONET-rings in the
Western U.S.
"While I'm extremely proud of the outstanding revenue growth and efforts of
our employees, after careful analysis, we've determined that this high-volume,
low-end product simply does not fit within the margin strategy of Electric
Lightwave," said Dave Sharkey, president and chief operating officer. "Our
efforts to sell video conference services will also be discontinued, although we
will retain all our current video conference facilities for internal use only."
The dissolution of Voice Solutions affects 30 employees whose positions
will be eliminated by November 1. The affected employees will have a choice of
applying for positions within the company or will be eligible for a severance
package.
"We anticipate our exit from the prepaid card business will accelerate our
efforts to reach positive EBITDA during next year," said Sharkey.
Approximately 53 telecard service provider customers, who offer prepaid
calling cards in 86,000 outlets across the country, will be affected by this
change. However, Electric Lightwave's previously distributed prepaid phone cards
will remain activated for existing customers until the date of expiration, as
displayed on each card.
Electric Lightwave first began offering prepaid calling card and
videoconferencing services in late 1996.
About Electric Lightwave
Electric Lightwave Inc. (NASDAQ: ELIX) is a leading integrated
communications provider of enhanced data services, frame relay, ATM and Internet
access solutions to bandwidth intensive businesses and the growing e-commerce
market. The company provides long distance and data services nationwide, with
data points-of-presence in Atlanta, Chicago, Cleveland, Dallas, Denver, Houston,
Las Vegas, Los Angeles, New York, Palo Alto, Calif.; Philadelphia, San Diego,
San Francisco, San Jose, Calif.; and Washington, D.C.
As a full-service provider, the company offers businesses local, long
distance and high-speed broadband transport that interconnects major markets in
the West, including Seattle, Sacramento, Calif.; Salt Lake City, Phoenix, Boise,
Idaho; Spokane, Wash.; and Portland, Ore.
Headquartered in Vancouver, Wash., the company employs 1,200 and generated
revenues of $101 million in 1998, up 65 percent from 1997. Additional
information about Electric Lightwave Inc. is located on the World Wide Web at
www.eli.net.
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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 hereunto duly authorized.
Electric Lightwave, Inc.
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Registrant
By: /s/ Kerry D. Rea
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Vice President and Controller
Date: August 24, 1999
