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 August 29, 2000
(Date of earliest event reported) (August 10, 2000)
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)
<PAGE>
Item 5. Other Events
(a) On August 10, 2000, the Registrant issued the following press release:
CTC Communications Announces Verizon Strike Will Not Materially Impact
Revenue and Access line Growth
--New Customer Acquisition Order Processing Continues with Minimum Delays--
WALTHAM, Mass-August 10, 2000-- CTC Communications Group Inc. (NASDAQ NM:
CPTL)-a rapidly growing next generation communications provider today
announced that the Verizon strike should not materially slow its revenue and
access line growth for the September Quarter.
"The impact of the Verizon strike on CTC's Revenue and access line growth for
the September Quarter should be minimal", stated Steve Milton, CTC's
President and COO. "The Companies primary growth engine is converting
existing Verizon customers to CTC customers and this process is continuing
with relatively minor delays. CTC is not dependent on new installation orders
to acquire new customers and grow its revenue base. CTC's new installation
order activity is primarily associated with incremental growth lines for
CTC's existing customers and migrating CTC's existing customers to the ICN
network. Due to the Verizon strike we are at a standstill in these two areas,
but this does not materially impact our ability to grow revenue and access
lines this quarter".
CTC acquires new customers and access lines from Verizon by placing orders
through an electronic bonding arrangement that requires minimal manual
intervention. Approximately 65% of these orders are being processed without
delay and are being completed in the normal "pre-strike" interval. The
remaining 35% are experiencing delays due to limited Verizon resources, but
continue to be processed to completion.
CTC orders that are not being process by Verizon because of the strike are
"new installation" orders. CTC issues new installation orders for two types
of activity; additional lines for existing customers and, T1/T3 facilities
used to migrate existing CTC customers from the Verizon network to CTC's
Integrated Communications Network (ICN). New Installation orders placed by
CTC, and all other CLECs, are being placed in backlog by Verizon and will not
be addressed until the strike is over.
Milton continued, "Although our top line growth will continue, our ability to
migrate customers to the ICN network and realize on-net margins is
substantially impacted by the strike. CTC sales of the ICN network continue,
but Verizon provisioning is at a standstill. We are in hopes that Verizon and
the Unions will settle this strike quickly and that the backlog of new
installation orders is rapidly addressed".
About CTC Communications
CTC is a rapidly growing, next generation communications provider with packet
technology that allows it to converge customer's long distance voice, data,
Internet and video services on a single broadband access facility and process
those converged services over a single packet-based network. Today, 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. As of 6/30/00, CTC was serving more than
13,000 customers with over 361,000 access lines.
The Company's Cisco Powered IP+ATM packet network, its 36 branch sales
offices and its 450 member sales and service teams, provide contiguous market
coverage in the New England and Mid-Atlantic States. The Company, through its
dedicated commitment to exceptional customer service has achieved an
industry-leading market share in the northeast and an industry-leading line
retention rate in excess of 99 percent. More on 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 ICN network growth, the
provision of local access lines, and the future of next generation
communications services. . Readers are, accordingly, cautioned not to place
undue reliance on these forward-looking statements, including anticipated ICN
Network capabilities, 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-K. 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: John Dinsmore Alan Russell
FELDMAN COMMUNICATIONS INC. CTC COMMUNICATIONS
410-571-8900 (t) 781-522-8731 (t)
[email protected] (e) [email protected]
www.FedmanCommunications.com www.ctcnet.com
(b) On August 23, 2000, the Registrant issued the following press release:
CTC Communications Announces $3.3 Million Dark Fiber Purchase from NorthEast
Optic Network
-NEON Fiber Deal Extends CTC Core Network throughout Southern New Hampshire
and Maine-
Highlights:
? $3.3 Million Agreement Signed with NorthEast Optic Network, Inc. to
Purchase 325 Route Miles of Dark Fiber in Northern New England including
colocation
? Commitment to Purchase Optical Networking Equipment from Cisco Systems to
"Light Up" the Fiber
WALTHAM, Mass-August 23, 2000-- CTC Communications Group Inc. (NASDAQ: CPTL)-
-a rapidly expanding next generation network provider-today announced that
the Company has signed a $3.3 million, 20 year agreement with NorthEast Optic
Network, Inc. ("NEON") (NASDAQ:NOPT) for 325 route miles of dark fiber
extending from Western Massachusetts through Southern New Hampshire and
Southern Maine. Under the terms of the agreement NEON will provide colocation
along the route as well as ongoing fiber maintenance over the life of the
agreement.
This is CTC's second dark fiber purchase. In April 2000 the Company purchased
8300 route miles of dark fiber from Williams Communications covering the
Eastern half of the United States. Today's announcement with NEON extends
CTC's core fiber network specifically to the commerce centers of the states
of New Hampshire and Maine. The Company intends to continue its targeted dark
fiber expansion to broaden the geographic reach of its Cisco powered
Integrated Communications Network (ICN) and substantially boost bandwidth
availability for both the Company and its customers.
CTC further announced that it will install and operate its own optronics
along the fiber routes and has selected Cisco Systems Inc., (NASDAQ: CSCO),
the worldwide leader in networking for the Internet, as its optronics
provider. CTC will purchase industry leading, Internet scale, carrier class
optical networking equipment, specifically Cisco's ONS 15454 and ONS 15800 to
"light up" the NEON fiber.
In making today's announcement, Robert J. Fabbricatore, CTC's Chairman and
CEO stated, "NEON has been a valued partner of CTC since we began deploying
our ICN network in 1998 and we are extremely pleased to announce this
agreement which represents a continuation of the relationship between our
Companies. NEON has fiber routes that help extend CTC's reach to both the
primary and secondary centers of commerce in the northern New England states,
an important marketplace for us. Additionally, their state of the art network
helps CTC provide quality service, redundancy and bandwidth to those markets
in an efficient and cost effective manner. Owning and operating the fiber
network provides CTC with the tools to effectively manage network costs while
keeping pace with the escalating demand for bandwidth. This is a strategic
imperative that will enable us to cost effectively and quickly, meet and
exceed, customer needs as tomorrow's products and applications - which will
be even more bandwidth-intensive - emerge."
Mr. Fabbricatore also noted that the Company continues to explore the
purchase of dark fiber in major metropolitan markets. "Moving the power of
our broadband ICN network and readily available high level bandwidth
progressively closer and closer to the customer's location will be a
cornerstone to new applications delivery and speed to market. CTC's fiber and
optronics will be integrated directly into the Company's operating support
and management systems. This integration will allow CTC to provide bandwidth
capacity and routing efficiency on a real-time high-level bandwidth
availability to our customers, right at their locations. In short, successful
Next Generation Network Communications Providers will bring the network to
the customer rather than the customer to the network."
About CTC Communications
CTC is a rapidly growing, next generation communications provider with a
packet-based network that allows it to converge voice, data, Internet and
video services. Today, the Company serves medium and larger business
customers from Washington D.C. to Maine, which includes the most robust
telecommunications region in the world-the Washington D.C. to Boston
corridor. Designated by Bloomberg Personal Finance Magazine as one of the top
"one hundred fastest growing U.S. technology companies," CTC was serving more
than 13,000 customers with over 361,000 access lines as of June 30, 2000.
The Company's Cisco Powered IP+ATM packet network, its 36 branch sales
offices 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 and an industry-leading
line retention rate in excess of 99 percent. 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 branch sales office,
ICN Network expansion and fiber network build-out. 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 reports on
Forms 10-K and 10Q. 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: John Dinsmore Alan Russell
Feldman Communications Inc. CTC Communications
410-571-8900 (t) 781-522-8731 (t)
[email protected] (e) [email protected]
www.FeldmanCommunications.com 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 GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration
Dated: August 29, 2000
