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) July 11, 1997
(July 10, 1997)
MCI COMMUNICATIONS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-6457 52-0886267
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
1801 Pennsylvania Avenue, N.W., Washington, D.C. 20006
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code (202) 872-1600.
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Item 5. Other Events.
On July 10, 1997, MCI announced that anti-competitive tactics practiced
by the local phone monopolies are preventing MCI from fully executing its local
strategy. As a result, MCI faces higher than expected costs to enter the local
market. MCI estimates that local market losses for 1997 could reach $800
million. The bulk of the losses will occur in the second half of 1997. MCI said
that 1998 losses in its local business could exceed the levels incurred in 1997.
As a result of these developments, MCI expects earnings for the remainder of
1997 and 1998 to be lower than current market expectations.
MCI also announced that it is exploring a series of steps to improve
financial performance. While these decisions have not been finalized, if taken,
they could result in material charges to MCI's 1997 results of operations.
Forward-looking Statements May Prove Inaccurate
MCI has made certain forward-looking statements in this Current
Report on Form 8-K that are subject to risks and uncertainties. Forward-looking
statements include information concerning the possible future results of
operations of the company, its long-distance telecommunication services
business, its investments in ventures and developing markets ("VDM") businesses,
the possible future results of operations of the company and Concert plc
("Concert") after the merger (the "Merger") of MCI with and into Tadworth
Corporation, a wholly-owned subsidiary of British Telecommunications plc, and
statements of information preceded by, followed by or that include the words
"estimates", "expects", or similar expressions. For those statements, the
company claims the protection of safe-harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. The reader is
cautioned that important factors such as the following could affect the future
results of the company, its long distance telecommunication services and VDM
businesses and the company and Concert after the Merger and could cause those
results to differ materially from those expressed in the forward-looking
statements: material adverse changes in the economic conditions in the markets
served by the company and Concert; a significant delay in the expected closing
of the Merger; future regulatory actions and conditions in MCI's and Concert's
operating areas, including the ability of the company to obtain local facilities
at competitive rates; and competition from others in the U.S. and international
long-distance markets, including the entry of the RBOC's and other companies
into the long-distance markets in the U.S.
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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.
MCI COMMUNICATIONS CORPORATION
/s/ C. Bolton-Smith, Jr.
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C. Bolton-Smith, Jr.
Secretary
Date: July 11, 1997
