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UNITED STATES
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: APRIL 10, 2000
(Date of earliest event reported)
GTE CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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<S> <C> <C>
NEW YORK 1-2755 13-1678633
(STATE OR OTHER JURISDICTION OF (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION)
1255 Corporate Drive, SVC04C08, Irving, Texas 75038
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
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Registrant's telephone number, including area code 972-507-5000
(Former name, former address and former fiscal year, if changed since
last report)
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GTE CORPORATION
FORM 8-K
Item 5. Other Events
In connection with the registration statement filed on April 7, 2000 by Genuity
Inc., a subsidiary of GTE Corporation ("GTE") formerly known as GTE
Internetworking, with the Securities and Exchange Commission, GTE issued a press
release dated April 10, 2000, which is attached as Exhibit 99.1 and is
incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(a) Financial Statements - None
(b) Pro Forma Financial Information - None
(c) Exhibits
99.1 News Release, dated April 10, 2000, issued by GTE
Corporation
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SIGNATURE
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.
GTE Corporation
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(Registrant)
Date: April 10, 2000 /s/ Marianne Drost
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Marianne Drost
Corporate Secretary
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EXHIBIT INDEX
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Exhibit
Number Description
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99.1 News Release, dated April 10, 2000, issued by GTE Corporation
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Exhibit 99.1
Media Contact: Peter Thonis, 972-507-5367 (pager 800-759-8888 pin 113-1814)
e-mail: [email protected]
April 10, 2000
STATEMENT FROM GTE ON GENUITY
IRVING, Texas -- GTE Chairman and CEO Charles R. Lee announced that GTE's Board
of Directors approved a significantly increased capital expenditure plan that
will enable Genuity, formerly GTE Internetworking, to accelerate the build-out
of its network infrastructure. The build-out will require capital expenditures
of $1.8 billion to $2 billion in 2000, and $11 billion to $13 billion over five
years.
Genuity also filed a registration statement with the SEC for the initial public
offering of the company's shares. Proceeds will be used to offset a portion of
these capital expenditures. "GTE believes a public offering will give Genuity
additional capital to execute its strategy in architecting, building and
operating the infrastructure for the Internet economy,'" Lee said.
"GTE's foremost priority continues to be completion of our merger with Bell
Atlantic, which we are targeting for later this quarter. The transition of
Genuity to a public company is part of a comprehensive proposal we have filed
with the FCC in order to complete the merger. Approving these additional capital
expenditures and moving forward with the public offering at this time is
consistent with GTE's overall growth strategy in its other businesses," he said.
"Since we have taken this action prior to our merger with Bell Atlantic, we
believe it is important to comment on the impact to GTE on a standalone basis."
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GTE - 2
GTE said it expects to meet its current guidance for the first half of this
year. Assuming a public offering of Genuity, the impact to GTE of the increase
in capital spending as well as additional costs for customer acquisition will be
as follows:
o For the year 2000, GTE's revenue is expected to be in the high
single digits, consistent with prior guidance.
o Earnings per share growth for the full year on a standalone basis
is expected to be in the high single digits.
o Earnings per share growth in 2001 and 2002 is expected to be in
the 10 percent range and will accelerate to at least the mid teens
thereafter.
"These are critical steps for GTE's Internet strategy and to enable
Genuity to continue to capitalize on its 30 years of innovation in the Internet
industry," Lee said.
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FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements. For each of these
statements, GTE claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995. If
future events and actual performance differ materially from GTE's assumptions,
actual results could vary significantly from the performance projected in these
forward-looking statements.
A registration statement related to Genuity's Class A common stock has been
filed with the Securities and Exchange Commission but has not yet become
effective. These securities may not be sold nor may offers to buy be accepted
prior to the time the registration statement becomes effective. This release
shall not constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. The public offering will be made
only by means of a prospectus, which, when available, may be obtained from
Morgan Stanley Dean Witter, 1585 Broadway, New York, New York 10036; or Salomon
Smith Barney, 328 Greenwich Street, New York, New York 10013.
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GTE - 3
The following important factors could affect future results and could cause
those results to differ materially from those expressed in this announcement:
materially adverse changes in economic conditions in the markets served by us or
by companies in which we have substantial investments; material changes in
available technology; the final outcome of federal, state, and local regulatory
initiatives and proceedings, including arbitration proceedings, and judicial
review of those initiatives and proceedings, pertaining to, among other matters,
the terms of interconnection, access charges, universal service, and unbundled
network element and resale rates; the extent, timing, success, and overall
effects of competition from others in the local telephone and toll service
markets; the success of our efforts to expand service capability in the data
communication, long-distance and enhanced services segments of the
telecommunications marketplace and to provide a bundle of products and services
both in and outside of its traditional service territories; the timing of, and
regulatory or other conditions associated with, the completion of our merger
with Bell Atlantic and our ability to combine operations and obtain revenue
enhancements and cost savings following the merger; and the timing of, and
regulatory or other conditions associated with, the ultimate completion of the
wireless joint venture between Bell Atlantic Corporation and Vodafone AirTouch
Plc, and the ability of the new wireless enterprise to combine operations and
obtain revenue enhancements and cost savings.
GTE's Annual Report on Form 10-K for the year ended December 31, 1999 discusses
in greater detail the important factors that could cause its actual results to
differ materially.
