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 reports): June 11, 1998
DATA TRANSMISSION NETWORK CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-15405 47-0669375
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification
Number)
9110 West Dodge Road, Suite 200, Omaha, Nebraska 68114
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (402) 390-2328
This 8-K consists of 4 pages. The Exhibit Index is on page 3.
<PAGE>
Item 5. Other Events.
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On June 11, 1998, the registrant announced an agreement to lease space
on a more powerful satellite with a larger geographic footprint to replace the
Galaxy IV satellite previously used by the registrant which failed on May 20,
1998. The registrant also announced its estimate of the non-recurring expenses
associated with the failure of the Galaxy IV satellite. Details of such
announcement are contained in the news release issued by the registrant on June
11, 1998, a copy of which is filed as an Exhibit to this Form 8-K.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits
99.1 News release of Data Transmission Network Corporation dated
June 11, 1998.
Signatures
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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.
Date: June 12, 1998.
DATA TRANSMISSION NETWORK CORPORATION
By: /s/ Brian L. Larson
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Brian L. Larson
Vice President, Chief Financial Officer
Secretary and Treasurer
2
<PAGE>
EXHIBIT INDEX
Page Number
In Sequential
Exhibit Numbering
No. System
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99.1 News release of Data Transmission Network 4
Corporation dated June 11, 1998.
3
<PAGE>
EXHIBIT 99.1
News release of Data Transmission Network Corporation dated June 11, 1998.
4
<PAGE>
June 11, 1998
DTN Announces Agreement To Lease More Powerful, Larger "Footprint" Satellite.
OMAHA, NEB -- Data Transmission Network Corporation (DTN) announced
today an agreement with its satellite provider to lease space on a newer, more
powerful satellite with a larger geographic footprint. According to Scott Fleck,
DTN Vice President and Director of Engineering, "This new satellite is the best
possible solution. It is arguably the best bird out there, with a geographic
footprint much larger than most data delivery satellites. With one hundred watts
of power, DTN subscribers will experience improved satellite reception."
On Wednesday morning, May 20, 1998, nearly all of DTN's 160,000
subscribers were unable to receive their data service due to loss of control of
the Galaxy IV satellite by PanAmSat. In a press release issued by PanAmSat,
Robert Bednarek, Senior Vice President and Chief Technology Officer, indicated
that the loss of the on-board spacecraft control processors caused the satellite
to lose its fixed orientation to earth.
On Wednesday afternoon, May 20, solutions were available to restore
service for the majority of DTN's subscribers. By late afternoon on Thursday,
May 21, solutions were available for all subscribers.
Brian Larson, DTN's Chief Financial Officer, stated, "The non-recurring
expenses associated with the failure of the Galaxy IV satellite and subscriber
conversions will be recorded in the second quarter ending June 30, 1998. The
Company will take a pre-tax charge in the second quarter of 1998 associated with
these unusual non-recurring costs of approximately $5.8 Million."
Greg Sloma, DTN President and Chief Operating Officer, said, "Although
a large cloud has passed overhead, the silver lining appears to be the
significant geographic footprint and increased power of the new satellite."
DTN's new satellite allows the Company to reach new areas such as Mexico, Alaska
and Hawaii. The Company offers products geared toward customers in these areas
that it was unable to reach with its former satellite. Long term, Mr. Sloma
indicated, "Although we have incurred significant costs to transition from the
old satellite to the new, we are confident this satellite will allow us to
provide service to a much larger geographic area with significantly improved
service to the customer."
Data Transmission Network Corporation (NASDAQ: DTLN) in Omaha,
Nebraska, is an innovative information and communication provider for the
agricultural, energy, farm implement, financial, mortgage, produce, golf, turf
management, construction, aviation, automotive, emergency management and
weather-related industries. DTN is committed to providing current, comprehensive
and affordably priced information including weather, news, quotes, market
analysis and commentary to more than 160,000 subscribers in the U.S. and Canada
via all relevant distribution technologies.
Visit the DTN Web site for company and investor information
at www.dtn.com.
