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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 28, 1999
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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.
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On June 28, 1999, the Company announced that it expects to report net
income of approximately $0.01 per diluted share on record revenues of
approximately $17.0 to $17.5 million for its second fiscal quarter, ending June
30, 1999. The expected earnings are below consensus analysts' estimates. The
Company also announced that it had signed a multi-year contract to provide its
EDA services to subscribers of Nextel Communications, a leading provider of
fully integrated wireless communications. Reference is made to the press
releases filed as Exhibit 99.1 and 99.2 hereto.
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SIGNATURE
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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: July 1, 1999
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
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The following Exhibits are hereby filed as part of this Current Report on Form
8-K:
<TABLE>
<CAPTION>
EXHIBITS
NUMBER DESCRIPTION
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<S> <C>
99.1 Press Release, dated June 28, 1999, "Metro One Telecommunications
Provides Preliminary Second Quarter Outlook"
99.2 Press Release, dated June 28, 1999, "Metro One Telecommunications Signs
New Business Contract with Nextel Communications"
</TABLE>
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FOR: METRO ONE TELECOMMUNICATIONS, INC.
CONTACTS: Steb Chandor
S.V.P., Chief Financial Officer
Metro One Telecommunications, Inc.
(503) 643-9500
Morgen-Walke Associates, Inc.
Carolyn Bass, Lynn Morgan
(415) 296-7383
Patricia Walsh, Eric Gonzales
FOR IMMEDIATE RELEASE (212) 850-5698
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METRO ONE TELECOMMUNICATIONS PROVIDES
PRELIMINARY SECOND QUARTER OUTLOOK
Portland, Oregon - June 28, 1999 - Metro One Telecommunications, Inc. (NASDAQ:
MTON) announced today that it expects to report net income of approximately
$0.01 per diluted share on record revenues of approximately $17.0 to $17.5
million for its second fiscal quarter, ending June 30, 1999. The company
expects to report its second quarter results on July 21, 1999.
"The expected earnings, which are below consensus analysts' estimates, come
as the result of our electing to take on an increased amount of staffing and
infrastructure expenditures in preparation for additional scheduled call volume
from a number of markets under long-term contract with a major customer group,"
commented Timothy A. Timmins, president and chief executive officer of Metro
One. "Had this additional call volume arrived as expected, we estimate that
earnings for the quarter would have been in line with analysts' estimates."
"We are pleased to note that call volume across our network for the second
quarter continued to exhibit very strong growth, leading to record revenues
despite the lack of this particular pending volume. At this time, partial
delivery of this call volume has commenced and we believe that it should be
substantially complete by the end of the third quarter."
"While we would like to see this pending volume more immediately reflected
in our bottom line results, we believe that our investment in maintaining a
state of readiness for new call volume is an important part of Metro One's
ongoing commitment to customers. As a direct result, they should continue to
provide us with additional future call volume, revenue and earnings."
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"We believe that our announcement today that we have signed an agreement to
provide our EDA services to Nextel Communications is further evidence that we
are correct in investing in readiness," Mr. Timmins added. "We look forward to
soon signing additional material business as a result of our approach to
readiness and customer care."
In a separate press release, Metro One announced today that it has signed a
multi-year contract to provide its EDA services to Nextel Communications Inc., a
leading provider of fully integrated wireless communications. Under the terms
of the contract, Metro One will provide its EDA services to Nextel's nationwide
network of wireless subscribers.
The company's statements about estimated and forward-looking results are
preliminary and based on currently available information as well as management's
assumptions.
Metro One Telecommunications, Inc. is recognized as the pioneer in the
development of Enhanced Directory Assistance services for the telecommunications
industry. The company operates a network of strategically-located call centers
throughout the U.S. Revenue for the full year 1998 was $45.1 million. The
company handled approximately 71 million requests for directory assistance on
behalf of its carrier customers in 1998 and approximately 24 million requests
for directory assistance during the first three months of 1999. For more
information about Metro One, visit the Metro One Telecommunications web site at
http://www.metro1.com.
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 version of the company's products or features, the timing of
the initiation of contracted EDA services or wireless services in the 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 most
recent Form 10-Q dated May 3, 1999 and Form 10-K for the year ended December 31,
1998. The forward-looking statements should be considered in light of these
risks and uncertainties.
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FOR: METRO ONE TELECOMMUNICATIONS, INC.
METRO ONE CONTACTS: Stebbins B. Chandor
S.V.P., Chief Financial Officer
Metro One Telecommunications, Inc.
(503) 643-9500
Morgen-Walke Associates, Inc.
Carolyn Bass, Lynn Morgan
(415) 296-7383
Patricia Walsh, Eric Gonzales
(212) 850-5698
NEXTEL CONTACT: Ben Banta
V.P., Corporate Communications
Nextel Communications, Inc.
(703)433-4700
FOR IMMEDIATE RELEASE
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METRO ONE TELECOMMUNICATIONS SIGNS NEW BUSINESS CONTRACT
WITH NEXTEL COMMUNICATIONS
Portland, Oregon - June 28, 1999 - Metro One Telecommunications, Inc. (NASDAQ:
MTON), the leading provider of Enhanced Directory Assistance-Registered
Trademark- (EDA) to the telecommunications industry, today announced that it has
signed a multi-year contract to provide its EDA services to subscribers of
Nextel Communications (NASDAQ: NXTL), a leading provider of fully integrated
wireless communications.
Under the terms of the contract, Metro One will provide its EDA services
for Nextel's entire nationwide network of subscribers. Nextel and Nextel
Partners Inc. currently serve 92 of the top 100 U.S. markets. Metro One expects
to begin rolling out its EDA service to Nextel's and Nextel Partners' markets
starting in the third quarter of 1999 and continuing through the end of the
year.
"We are delighted to begin providing our EDA services to this important
new customer," commented Timothy A. Timmins, president and chief executive
officer of Metro One. "The Nextel National Network and high-quality product
offering match up very well with our nationwide call center presence, which
provides customized EDA services on a localized basis."
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"Personalized local service is an important consideration in providing
enhanced services for our subscribers and a key reason we have chosen Metro
One," commented Mark Schweitzer, vice president of brand management for Nextel
Communications. "We are pleased to bring Metro One's Enhanced Directory
Assistance service to all of our subscribers across our nationwide all-digital
wireless network."
Nextel Communications Inc., based in Reston, Va., is the leading
provider of fully integrated wireless communications and has built the
largest guaranteed all-digital wireless network in the United States that
covers thousands of communities across the United States. Nextel and Nextel
Partners Inc. currently serve 92 of the top 100 U.S. markets. The Nextel
National Network offers a fully integrated wireless communications tool with
digital cellular, text and numeric paging and Nextel Direct Connect, a
digital two-way radio feature. In addition, through Nextel International
Inc., Nextel has wireless operations and investments in Canada; Mexico;
Argentina; Brazil; the Philippines; Peru; Japan; and Shanghai, China. Please
visit the company's Web page at http://www.nextel.com.
Metro One Telecommunications, Inc. is recognized as the pioneer in the
development of Enhanced Directory Assistance services for the telecommunications
industry. The company operates a network of strategically-located call centers
throughout the U.S. Revenue for the full year 1998 was $45.1 million. The
company handled approximately 71 million requests for directory assistance on
behalf of its carrier customers in 1998 and approximately 24 million requests
for directory assistance during the first three months of 1999. For more
information about Metro One, visit the Metro One Telecommunications web site at
http://www.metro1.com.
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 version of the company's products or features, the timing
of the initiation of contracted EDA services or wireless services in the 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 most recent Form 10-Q dated May 3, 1999
<PAGE>
and Form 10-K for the year ended December 31, 1998. The forward-looking
statements should be considered in light of these risks and uncertainties.
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