<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
MICROTEL INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 1-10346 77-0226211
-------- ------- ----------
State or Other Commission File IRS Employer
Jurisdiction of Number Identification No.
Incorporation or
Organization
4290 East Brickell Street
Ontario, California 91761
-------------------------------------- ------
Address of Principal Executive Offices Zip Code
Registrant's telephone number, including area code: (909) 391-4321
-------------
-----------------------------------------------------------
Former name or former address, if changed since last report
<PAGE> 2
Item 5. Other Events.
Proposed Sale of Xcel Arnold Circuits, Inc. Unit.
MicroTel International, Inc. (the "Company") announced that the Company has
agreed to sell its Xcel Arnold Circuits, Inc. unit to an undisclosed private
corporation. Details are more fully described in the Press Release attached as
Exhibit A.
2
<PAGE> 3
EXHIBIT A
(BW)(MICROTEL)(MCTL) MicroTel Announces Sale of Non-Profitable Subsidiary
Business Editors & High Tech Writers
ONTARIO, Calif, --(BUSINESS WIRE)--Oct. 14, 1997--MicroTel
International, Inc. (NASDAQ Small Cap:MCTL) ("MicroTel") announced today that
it has entered into a binding agreement in principle to sell its Xcel Arnold
Circuits, Inc. subsidiary ("XACI") to a private corporation. Closure of the sale
is subject to certain conditions including receipt of financing by the purchaser
and execution of definitive agreements.
XACI manufactures complex multi-layer printed circuit boards. While it
represents a significant portion of the revenues for MicroTel's Circuits Sector,
it is also the principle cause of MicroTel's losses during the first six months
of 1997.
In commenting on today's release, Carmine T. Oliva, the Chairman and
Chief Executive Officer of MicroTel stated, "Having just completed a strategic
review of all our business sectors, we have decided that the sale of Arnold
Circuits is necessary to achieve profitable operations in 1998."
MicroTel, through its wholly owned subsidiaries CXR Telcom Corporation,
based in San Jose, California and CXR, S.A., based in Paris, France, designs,
manufactures and markets electronic transmission test instruments and data
communications equipment to the telecommunications industry, including telephone
companies, interconnect carriers, private networks, banks, brokerage firms and
government agencies. MicroTel's wholly owned subsidiary, XIT Corporation, with
vertically integrated operations in the United States, England and Japan,
designs, manufactures and markets information technology products, including
displays and input components, subsystem assemblies, printed circuits and hybrid
microelectronic circuits for the international telecommunications, medical,
industrial and military/aerospace markets. MicroTel is organized along three
product line based sectors -- Instrumentation and Test Equipment, Circuits and
Components and Subsystem Assemblies.
--30-- ms/sf* sp/sf
CONTACT: MicroTel International, Inc.
James P. Butler, 909/391-4321 (VP Finance, CFO)
<PAGE> 4
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MICROTEL INTERNATIONAL, INC.
By: /s/ Carmine T. Oliva
-----------------------------
Carmine T. Oliva
President and Chief Executive Officer
Date: October 16, 1997
4
