<PAGE>
<PAGE> 1
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) October 14, 1997
FRONTIER CORPORATION
(Exact name of registrant as specified in its charter)
New York 1-4166 16-0613330
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
180 South Clinton Avenue, Rochester, New York 14646
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (716) 777-1000
Item 5 Other Events
- ------ ------------
Frontier Corporation announced immediate actions the company
is taking to significantly improve its financial and operating
performance.
As permitted by General Instruction F to Form 8-K, the
Registrant incorporates by reference the information contained in
the press release which is filed as an Exhibit to this Report on
Form 8-K.
<PAGE>
<PAGE> 2
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 of the undersigned hereunto duly
authorized.
Frontier Corporation
(Registrant)
/s/ Josephine S. Trubek
Dated: October 14, 1997 By: ------------------------
Josephine S. Trubek
Secretary
<PAGE>
<PAGE> 3
EXHIBIT INDEX
Exhibit Number Description
- -------------- ------------------
99 Press Release dated Filed herewith
October 14, 1997
<PAGE>1
DATE: October 14, 1997
CONTACT: Louis L. Massaro, Chief Financial Officer, 716-777-7940
Kirsten J. Sullivan, 716-777-6179 (investors)
Randal A. Simonetti, 716-777-5886 (media)
SUMMARY: NEW FRONTIER CEO ANNOUNCES BOLD RESTRUCTURING
TO FOCUS ON CORE BUSINESS
Frontier plans to divest product lines and businesses;
Expects third quarter EPS to be approximately 24 cents;
Takes a one-time charge of $55 million in fourth quarter;
Lays off more than 700 people and makes senior management
changes
Rochester, New York -- October 14, 1997 -- Joseph P. Clayton, who was
appointed President and Chief Executive Officer of Frontier Corporation
(NYSE:FRO) on August 20, 1997, today announced immediate actions the
company is taking to significantly improve its financial and operating
performance.
Divesting non-core businesses and products
- ------------------------------------------
Clayton announced the company's intention to divest product lines and
businesses which are not critical to its long-term growth. He cited the
prepaid calling card division as one example of a non-strategic, retail-
driven business the company plans to exit. Frontier is also phasing out
all low-margin, price-driven consumer long distance segments, such as
its Budget Call product.
"Product lines that distract from our core business and inefficiently
utilize our resources can no longer be part of our business portfolio,"
Clayton explained.
Third Quarter Expectations
- --------------------------
The company said that it expects third quarter 1997 earnings per
share (EPS) to be approximately 24 cents which is below analysts'
expectations. This is primarily due to the adverse impact of costs
associated with its prepaid calling card business and an increase in
network costs associated with a higher proportion of international
business. Actual earnings are expected to be released on October 21.
<PAGE>
<PAGE>2
"We continue to see modest top-line revenue growth in long distance
and solid results from local services. However, long distance expenses
have not improved," noted Clayton. "We are taking immediate and
decisive actions to take costs out of the business and strengthen the
profitability of this company."
Lowering Cost Structure
- -----------------------
As part of the restructuring announced today, Frontier will take a
one-time charge in the fourth quarter of $55 million or 33 cents per
share. This charge is primarily associated with a force reduction,
program cancellations, the exiting of certain product lines and
miscellaneous asset impairments. Approximately eight percent of the
employee base, or more than 700 positions, are being eliminated.
"Any decision that results in reductions in personnel is painful. In
this case, it is imperative that we eliminate redundancy and improve our
basic cost structure," said Clayton.
These cost-reducing actions are expected to be partially offset in
the near-term by investments in sales and customer service; an
acceleration of competitive local service expansion; and increased
product development efforts.
Senior Management Changes
- -------------------------
Clayton has made several changes at the senior level of the company
to integrate operations and streamline sales and marketing.
David R. Carey has joined Frontier as Senior Vice President of
Marketing after a long tenure at AT&T and Louisville Gas & Electric. In
an expanded role, Jeremiah T. Carr was named President of Frontier
Operations, which combines local and long distance and includes all
Frontier operations. Fifteen-year Frontier veteran Donna L. Reeves was
promoted to President of Frontier Sales.
Continuing in their existing positions are: Louis L. Massaro, Chief
Financial Officer; Robert L. Barrett, President of Frontier Technology;
and Gregory M. Jones, Vice President of Frontier Strategic Planning.
Dale M. Gregory, former senior vice president of corporate development,
has retired. Kevin J. Bennis, former president of Frontier
Communications, will pursue other interests.
"Over the past 100 days I have formulated a plan to jump-start the
momentum this company has built up over the last 100 years," Clayton
remarked. "Today, we begin fast and focused implementation of that
plan, which calls for a new Frontier spirit that embodies a market-
driven, customer-focused, highly profitable telecommunications company."
<PAGE>
<PAGE> 3
The statements made in this press release, other than historical
financial results, may be forward-looking in nature. Actual results may
differ materially from those projected in forward-looking statements.
We believe that our primary risk factors include, but are not limited
to: changes in the overall economy; technology; the number and size of
competitors in our markets; law and regulatory policy; and the mix of
products and services offered in our target markets. Additional
information concerning these and other potential important factors can
be found within our SEC Filings. You should evaluate any statements in
light of these important factors.
Frontier Corporation is the parent company whose long distance,
local telephone and wireless communications subsidiaries provide a range
of integrated services to customers. Frontier is a Standard & Poor's 500
company with annualized revenue approaching $2.5 billion. With sales
locations nationwide and nearly 8,000 employees, Frontier is the fifth
largest long distance company in the United States.
You can receive a faxed copy of any Frontier Corporation press
release dating back to October 1996, free of charge, 24 hours a day.
Call 1-800-758-5804, extension 762302. An automated system will provide
you with instructions.
