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: January 11, 2000
AT&T CORP.
A New York Commission File I.R.S. Employer
Corporation No. 1-1105 No. 13-4924710
32 Avenue of the Americas, New York, New York 10013-2412
Telephone Number (212) 387-5400
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Form 8-K
AT&T Corp.
January 11, 2000
Item 5. Other Events.
See Exhibit 99 to this Form 8-K.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit 99 AT&T Corp. Press Release issued January 11, 2000.
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Form 8-K
AT&T Corp.
January 11, 2000
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.
AT&T CORP.
/s/ Marilyn J. Wasser
-----------------------------------
By: Marilyn J. Wasser
Vice President and Secretary
January 11, 2000
Exhibit 99
[GRAPHIC OMITTED]
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News Release
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AT&T REAFFIRMS 1999/2000 FINANCIAL GUIDANCE,
REPORTS FAST START IN LOCAL PHONE SERVICE
FOR RELEASE TUESDAY, JAN. 11, 2000
NEW YORK - AT&T Chairman C. Michael Armstrong reaffirmed the company's
confidence in meeting its 1999 and 2000 financial targets, speaking at a
conference of financial analysts today.
Armstrong also said that AT&T is off to a fast start in the residential
local phone service market. Since its introduction late last year, more than
100,000 New Yorkers have signed up for AT&T Local One Rate New York - 40,000 in
December alone. In New York, AT&T is providing residential telephony service
over facilities leased from the local Bell company.
AT&T is also ahead of target in upgrading its cable facilities for
two-way communications. It now offers local phone service over its broadband
cable facilities in 16 cities, and is adding customers at three times the rate
as in November, Armstrong said.
"Our marketplace experience as well as yesterday's announcement of a
merger between AOL and Time Warner reconfirmed the soundness of our broadband
strategy and our broadband investment," Armstrong said.
"Our strategy for growth is on track as we transform AT&T from a
domestic long distance company to an any-distance, any-service global company,"
he said. "No one should doubt our resolve to deliver customers a choice for
local telephone service and more.
"Local residential sales continue at a brisk pace as customers
continue to embrace the bundled offer," Armstrong said. "Our only serious
disappointment, and most significant risk in the New York market, remains Bell
Atlantic's poor provisioning performance.
"In our view, Bell Atlantic continues to fall short of what the law
requires and customers deserve. It still isn't as easy or economical for AT&T or
other local competitors to switch local customers as it is for Bell Atlantic to
switch long distance customers. Today, it takes us 7 to 10 days to provide
service to a customer when it should take 2 to 3 days. That's why it's so
important for the Federal Communications Commission to make good on its promise
to remain vigilant, and for Bell Atlantic to continue to improve its systems and
provisioning.
"Consumers are making it abundantly clear that they want a choice of
local phone service providers," Armstrong said. "The entire AT&T company is
focused and committed to providing that choice whether by broadband cable
television technology, fixed wireless, the use of the incumbent carrier's
facilities, or other alternatives."
Armstrong said that AT&T is also at or ahead of target with services
such as AT&T One Rate(sm) Seven Cents long distance service, and business local
and frame relay service. AT&T has nearly 5 million customers on the AT&T One
Rate Seven Cents plan, he said, 35 to 40 percent of whom are new to AT&T. When
reporting fourth quarter financial results on January 25, Armstrong said AT&T
expects to announce that total pro forma revenue grew between 5 to 7 percent in
1999. Earnings per share (EPS) for 1999 are expected to be between $2.15 to
$2.20. Earnings before interest, taxes, depreciation and amortization (EBITDA)
for 1999 is expected to be at the high end of the previously announced range of
$18 to $20 billion.
For 2000, Armstrong reaffirmed that total pro forma revenue growth will
range between 8 to 9 percent, a 30 to 60 percent increase from the revenue
growth rate expected for 1999, excluding the impact of Concert, the global joint
venture with BT. Earnings per share for 2000 are projected to range between
$2.10 to $2.15 (which also excludes the impact of Concert). Cash EPS (which adds
back the impact of purchased intangibles) in 2000 is expected to range between
$2.50 to $2.60. Operational EBITDA is projected to range between $24 billion to
$26 billion in 2000.
"We've met or exceeded our revenue growth commitments for seven
consecutive quarters," Armstrong said. "We intend to build on that track record
as we execute our any-distance strategy." Armstrong also outlined growth
prospects for 2000 for the "core" AT&T, in light of the company's plans to
create a wireless tracking stock. Even without wireless, he said, the rest of
AT&T will grow revenue 5 to 6 percent, and EBITDA is expected to range between
$22 billion to $24 billion.
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