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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):
April 24, 2000
AT&T CORP.
(Exact name of registrant as specified in charter)
New York
(State or other jurisdiction of incorporation)
1-1105 13-4924710
(Commission File No.) (IRS employer identification no.)
32 Avenue of the Americas, New York, New York 10013-3412
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(212) 387-5400
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Form 8-K
AT&T Corp.
April 24, 2000
ITEM 5. OTHER EVENTS
On April 24, 2000, AT&T Corp. issued a press release (the
"Release") announcing first quarter financial information for its
wireless mobility unit. A copy of the Release is attached hereto as
Exhibit 99.1 and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits.
99.1 Press release issued by AT&T Corp. on April 24, 2000.
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Form 8-K
AT&T Corp.
April 24, 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.
By: /s/ Robert S. Feit
--------------------------------------
Name: Robert S. Feit
Title: General Attorney and Assistant
Secretary
Date: April 24, 2000
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Description
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<S> <C>
99.1 Press release issued by AT&T Corp. on April 24, 2000.
</TABLE>
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[AT&T LOGO]
NEWS RELEASE
For Further Information:
David P. Caouette
908-221-6000 (office)
[email protected]
AT&T RELEASES SELECTED FINANCIAL RESULTS
OF WIRELESS MOBILITY UNIT
FOR IMMEDIATE RELEASE - MONDAY, APRIL 24, 2000
NEW YORK - AT&T today announced first quarter selected financial
information for its wireless mobility unit as the company moves closer to the
initial public offering (IPO) of the AT&T Wireless Group tracking stock.
First quarter revenue for the AT&T Wireless Group mobility unit grew
40.7 percent to $2.198 billion, compared to $1.562 billion in the year ago
quarter. When adjusted for the purchase of Vanguard Cellular in the second
quarter of 1999, revenue increased 33.1 percent. Net subscriber additions
totaled 418,000 as compared to 372,000 in the first quarter of 1999. Revenue
growth was driven by this increase in the number of subscribers, as well as by
subscribers' increased use of wireless services.
Earnings before interest, taxes, depreciation and amortization
(EBITDA), excluding other income and restructuring costs, grew 112.0 percent to
$430 million as compared to $203 million for 1999's first quarter. Increased
EBITDA was driven by the revenue increases, as described above, and by
continuing improvement in the management of roaming costs, which put more
traffic on AT&T networks and lowered roaming rates.
As a result of these factors, particularly in regards to roaming costs,
the company expects its mobility unit's EBITDA - excluding other income and
restructuring charges - to grow above its original estimate of 35 to 40 percent.
The company now expects EBITDA to grow in the range of 40 to 45 percent in the
year 2000 when compared to 1999.
AT&T also reconfirmed that it intends to dispose of its remaining
economic interest in the AT&T Wireless Group, a portion of which would be
distributed in the second half of this year. The company said that at an
appropriate time, AT&T common shareowners would receive a stock dividend for at
least a portion of the interest. AT&T said that it is also considering an
exchange offer, a further sale of AT&T Wireless Group
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tracking stock, or a combination of these alternatives, in the disposition of
its economic interest. The method, timing and sequence of the distribution
options, which could occur in stages, will be based on the AT&T Board of
Directors' assessment of market conditions and other circumstances, as
appropriate, with a goal of maximizing value for all AT&T shareowners.
AT&T said it released this financial information about the AT&T
Wireless Group mobility unit in anticipation of the IPO. The company cautioned
investors not to change their estimates of the company's overall quarterly or
annual results based solely on this information about its mobile wireless
business. The company plans to announce complete first quarter financial results
for AT&T Common Stock, including its wireless business, on Tuesday, May 2, 2000.
# # #
The foregoing are "forward-looking statements" which are based on management's
beliefs as well as on a number of assumptions concerning future events made by
and information currently available to management. Readers are cautioned not to
put undue reliance on such forward-looking statements, which are not a guarantee
of performance and are subject to a number of uncertainties and other factors,
many of which are outside AT&T's control, that could cause actual results to
differ materially from such statements. For a more detailed description of the
factors that could cause such a difference, please see AT&T's filings with the
Securities and Exchange Commission. AT&T disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
While the registration statement relating to these securities has been filed
with the Securities and Exchange Commission, it 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 press release shall not
constitute any 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.
