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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): June 25, 1998
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METRO ONE TELECOMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
Oregon 0-27024 93-0995165
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
8405 SW Nimbus Avenue, Beaverton, Oregon 97008
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (503) 643-9500
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Item 5. OTHER EVENTS.
On June 25, 1998, the Company announced that its contract with BellSouth
Cellular and portions of its contract with Ameritech Cellular are not expected
to be renewed when they conclude this year. The company also announced that
revenues in its second quarter ending June 30, 1998 are expected to be greater
than current investor expectations. Second quarter revenues are currently
expected to be in the range of $10.7 to $10.9 million, nearly double 1997 second
quarter revenues of $5.5 million. Reference is made to the press release filed
as Exhibit 99 hereto.
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SIGNATURE
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.
METRO ONE TELECOMMUNICATIONS, INC.
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(Registrant)
Date: June 30, 1998
By:/s/ Stebbins B. Chandor, Jr.
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Stebbins B. Chandor, Jr.
Senior Vice President
Chief Financial Officer
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EXHIBIT INDEX
The following Exhibits are hereby filed as part of this Current Report on Form
8-K:
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<CAPTION>
Exhibit
Number Description
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<S> <C>
99 Press Release, dated June 25, 1998
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PRESS RELEASE
FOR IMMEDIATE RELEASE
For further information, contact:
Stebbins Chandor Fletcher Chamberlin
S.V.P., Chief Financial Officer Investor Relations
Metro One Telecommunications, Inc. Harris Massey Herinckx
(503) 643-9500 (503) 973-9226
METRO ONE TELECOMMUNICATIONS COMMENTS ON SECOND QUARTER OUTLOOK, CONTRACT
CONCLUSIONS
Portland, Oregon - June 25, 1998 - Metro One Telecommunications, Inc.
(NASDAQ: MTON), a leading provider of enhanced directory assistance (EDA) to
the telecommunications industry, today announced that its contract with
BellSouth Cellular and portions of its contract with Ameritech Cellular are
not expected to be renewed when they conclude this year. The company also
announced that revenues in its second quarter ending June 30, 1998 are
expected to be greater than current investor expectations.
Second quarter revenues are currently expected to be in the range of
$10.7 to $10.9 million. That is nearly double 1997 second quarter revenues
of $5.5 million and continues the company's recent record of rapid
year-over-year growth.
Metro One has been providing a limited version of its service to
portions of the BellSouth Cellular subscriber base in south Florida under a
contract that concludes at the end of June 1998. The company has been
informed that directory assistance for these customers will be handled by
internal BellSouth capacity when the contract with Metro One concludes. The
BellSouth contract provided less than 3% of revenues in the first quarter of
1998.
The portion of the company's Ameritech Cellular EDA contract pertaining
to the Chicago market, although currently on extension to July 1998, is not
expected to be replaced by a long-term contract. It is expected that
Ameritech will handle directory assistance calls for both the Chicago and
Detroit markets with its own internal personnel. Service for the Detroit
portion of the contract is contractually scheduled to conclude in
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November 1998.
"The conclusion of the BellSouth business will have a minimal impact on
our revenue growth, which has been approximately 100% on a year-over-year
basis for the last two quarters," commented Timothy A. Timmins, president and
CEO of Metro One. "We continue to see substantial growth from our other
customers, who do not require their subscribers to go through a 'gateway' to
reach our operators, and we have ongoing business discussions about new
contracts with other communications companies.
"The Chicago Ameritech business, which represented approximately 10% of
our revenues in the first quarter of 1998," continued Timmins, "is obviously
meaningful and we would have liked to retain it. We do feel that the growth
we are currently experiencing within our existing customer base plus growth
we should be able to generate from new business should more than make up for
the completion of this particular portion of the Ameritech Cellular business
and that of BellSouth."
Metro One Telecommunications, Inc. is an independent developer and
provider of Enhanced Directory Assistance services for the telecommunications
industry. The company operates call centers located throughout the U.S.
Revenue for the full year 1997 was $26.1 million. Revenue for the first
quarter of 1998 was $9.0 million, or 102 percent above first quarter 1997
levels.
This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions of The Private Securities Litigation
Reform Act of 1995. The forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements, including, but not limited to, increased
competition, expiration of EDA contracts, the rapidly changing
telecommunications market, changes in pricing policies by the company or its
competitors, lengthy sales cycles, lack of market acceptance or delays in the
introduction of new versions of the company's products or features, the
timing of the initiation of wireless services in new market areas by
telecommunications customers, the timing and expense of the company's
expansion of its nationwide call center network and other factors detailed in
the Company's Securities and Exchange Commission filings, including its
reports on Form 10-KSB for the year ended December 31, 1997 and on Form10-QSB
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for the quarter ended March 31, 1998. The forward-looking statements should
be considered in light of these risks and uncertainties.
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