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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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) November 15, 1999
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METRO ONE TELECOMMUNICATIONS, INC.
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(Exact Name of Registrant as Specified in its Charter)
Oregon 0-27024 93-0995165
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(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
11200 Murray Scholls Place, Beaverton, Oregon 97007
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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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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On November 15, 1999, Metro One Telecommunications, Inc.
(the "Company") announced that it believes that its earnings for the fourth
quarter ending December 31, 1999 will be less than one-half of current
consensus analysts estimates of $0.14 per share. While the Company's
expectations of continued revenue growth for those periods have not changed, its
margins are being affected by increased call center staffing and associated
labor costs to meet call volume from existing and new carrier customers. The
tight labor market has required the Company to hire operators through
agencies and to generate extra overtime hours in markets servicing and
preparing to service significant new call volume; the higher labor costs
brought on by these actions have been the principal reason for expected lower
earnings. The Company cannot determine the precise impact that these
increased costs will have on its earnings into the year 2000 as additional
call volume is rolled out.
The foregoing is qualified in its entirety by reference to
a copy of the Company's press release, which is filed as Exhibit 99.1 to this
Report and incorporated in this Report by this reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS.
EXHIBIT NO. DESCRIPTION
99.1 Press Release, dated November 15, 1999,
"Metro One Telecommunications Comments on
Earnings Estimates."
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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.
Date: November 15, 1999
Metro One Telecommunications, Inc.
By /s/ Stebbins B. Chandor, Jr.
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Stebbins B. Chandor, Jr.
Senior Vice President and
Chief Financial Officer
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
99.1 Press Release, dated November 15, 1999, "Metro One
Telecommunications Comments on Earnings Estimates."
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EXHIBIT 99.1
FOR: METRO ONE TELECOMMUNICATIONS, INC.
CONTACTS: Stebbins B. Chandor
S.V.P., Chief Financial Officer
Metro One Telecommunications, Inc.
(503) 643-9500
Morgen-Walke Associates, Inc.
Jim Byers, Carolyn Bass
(415) 296-7383
Patricia Walsh, Eric Gonzales
(212) 850-5698
Media Inquiries: Peter DeLauzon
(415) 439-4529
FOR IMMEDIATE RELEASE
METRO ONE TELECOMMUNICATIONS
COMMENTS ON EARNINGS ESTIMATES
Portland, Oregon - November 15, 1999 - Metro One Telecommunications, Inc.
(NASDAQ: MTON), a leading provider of Enhanced Directory Assistance
- -Registered Trademark- (EDA) to the telecommunications industry, today
announced that it believes that its earnings for the fourth quarter ending
December 31, 1999 will be less than one-half of current consensus analysts
estimates of $0.14 per share. While the company's expectations of continued
revenue growth for those periods have not changed, its margins are being
affected by increased call center staffing and associated labor costs to meet
call volume from existing and new carrier customers. The tight labor market
has required the company to hire operators through agencies and to generate
extra overtime hours in markets servicing and preparing to service
significant new call volume; the higher labor costs brought on by these
actions have been the principal reason for expected lower earnings. The
company cannot determine the precise impact that these increased costs will
have on its earnings into the year 2000 as additional call volume is rolled
out.
On October 22, 1999, the company filed a registration statement with
the Securities and Exchange Commission for a proposed public offering of its
common stock. The registration relates to 2,000,000 shares of common stock to
be sold by the company and 67,500 shares to be sold by selling shareholders,
together with up to 310,125 additional shares subject to an option to be
granted by the company to enable the underwriters to cover over-allotments in
the offering, if
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any. The company intends to proceed with the offering, depending upon the
market price of its common stock, general market conditions and other factors.
Metro One Telecommunications, Inc. is a leading developer and
provider of Enhanced Directory Assistance services for the telecommunications
industry. The company operates a network of strategically-located call
centers throughout the U.S. The company handled approximately 71 million
requests for directory assistance on behalf of its carrier customers in 1998
and approximately 93 million requests for directory assistance during the
first nine months of 1999.
This press release contains forward-looking statements with respect
to its earnings and revenues 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, factors detailed in the registration statement
recently filed by the company with the Securities and Exchange Commission.
The forward-looking statements should be considered in light of these risks
and uncertainties.
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