SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report October 22, 1998
(Date of earliest event reported) (October 16, 1998)
USCI, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-22282 13-3702647
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
6115-A Jimmy Carter Blvd., Norcross, Georgia 30071
(Address of principal executive offices) (Zip Code)
(770) 840-8888
(Registrant's telephone number including area code)
(Former name or former address if changed since last report)
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Item 5. Other Events
On October 16, 1998, the Registrant issued the following press release:
USCI, INC./AMERITEL ANNOUNCES A MAJOR STRATEGIC CHANGE
FOCUS IS ON NEW DISTRIBUTION STRATEGY AND PREPAID SERVICES
NORCROSS, GA (October 16, 1998).USCI, Inc. (Nasdaq NM:USCM), and its
wholly-owned subsidiary, Ameritel Communications, Inc., a nationwide
cellular services reseller, announced today an immediate major shift in
strategy, focusing on the reduction of its subscriber acquisition costs
and the introduction of prepaid cellular services that will target
direct response marketing, mass market channels and the previously
announced Internet E-commerce site that is currently being developed.
USCI management also reported that Ameritel's contract with RadioShack
has been terminated and, effective today, it is no longer activating
new customers referred by the RadioShack chain.
While RadioShack represented Ameritel's largest retail distribution
channel, subscriber acquisition costs were significantly higher than
provided for in the Company's new business strategy. USCI believes
that its new business strategy is expected to result in increased gross
profit margins and lower promotional and subscriber acquisition costs.
As part of the new marketing strategy, USCI/Ameritel has concluded a
marketing agreement with the U.S. division of a major Japanese
electronics manufacturer, Niigata Seimitsu, to provide products for the
prepaid cellular platform. Details of this program will be announced
shortly.
The Company, as previously announced, recently signed a Letter of
Intent with Rare Medium, Inc. (Nasdaq: RRRR) to develop and launch the
first national interactive cellular services Internet web site which
will permit on-line activation for new USCI/Ameritel wireless
subscribers virtually anywhere across the country where USCI provides
cellular service, and to provide full customer service support.
The shift in strategy will enable USCI/Ameritel to reduce its operating
expenses through reductions in personnel and related costs as well as
other operating costs without sacrificing efficiency or quality of
customer support.
USCI, Inc., through its wholly-owned subsidiaries, is a non-facilities
based carrier providing multiple wireless services through mass market
distribution channels. Its subsidiaries provide wireless coverage and
billing to consumers for paging service, cellular service, and debit
cellular service.
<PAGE>
Note: Certain statements in this press release constitute forward-
looking statements within the meaning of the Private Securities Reform
Act of 1995 including the statements that the Company's new business
strategy will increase gross profit margins and lower promotional and
subscriber acquisition costs, and reduce operating expenses through
reductions in personnel and related costs as well as other operating
costs without sacrificing efficiency or quality of customer support.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Additional information
about these risks and uncertainties is set forth in the company's
current Forms 10-K and 10-Q filings. The Company disclaims any intent
or obligation to update these forward-looking statements.
Contact:
USCI, Inc. or KCSA
Mario Martinez Joseph A. Mansi/Paul Holm
Chief Operating Officer 212/896-1205/1201
800/732-1169, ext. 8989 Fax 212/697-0910
e-mail: [email protected] e-mail: [email protected]
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.
USCI, Inc.
(Registrant)
By: /s/ Robert J. Kostrinsky
Robert J. Kostrinsky
Executive Vice President
October 22, 1998
