Company Fine Tunes Business Strategy to Accelerate EBITDA Profitability Next
Year; Ends Prepaid Calling Card and Videoconferencing Services
VANCOUVER, Wash., Aug. 24 /PRNewswire/ -- Electric Lightwave Inc.
(Nasdaq: ELIX), a top integrated communications provider, today announced that
its Voice Solutions division, which includes prepaid calling cards and
videoconferencing, will dissolve November 1.
Electric Lightwave's decision to disband its Voice Solutions division is
part of the company's business strategy to accelerate EBITDA profitability
next year. The company plans to continue increasing revenues through effective
asset utilization in its in existing markets. As a result, Electric Lightwave
expects to improve its operational competencies that can support and sustain
rapid growth as it moves closer to completing one of the nation's largest
SONET-rings in the Western U.S.
"While I'm extremely proud of the outstanding revenue growth and efforts
of our employees, after careful analysis, we've determined that this
high-volume, low-end product simply does not fit within the margin strategy of
Electric Lightwave," said Dave Sharkey, president and chief operating officer.
"Our efforts to sell video conference services will also be discontinued,
although we will retain all our current video conference facilities for
internal use only."
The dissolution of Voice Solutions affects 30 employees whose positions
will be eliminated by November 1. The affected employees will have a choice of
applying for positions within the company or will be eligible for a severance
package.
"We anticipate our exit from the prepaid card business will accelerate our
efforts to reach positive EBITDA during next year," said Sharkey.
Approximately 53 telecard service provider customers, who offer prepaid
calling cards in 86,000 outlets across the country, will be affected by this
change. However, Electric Lightwave's previously distributed prepaid phone
cards will remain activated for existing customers until the date of
expiration, as displayed on each card.
Electric Lightwave first began offering prepaid calling card and
videoconferencing services in late 1996.
About Electric Lightwave
Electric Lightwave Inc. is a leading integrated communications provider of
enhanced data services, frame relay, ATM and Internet access solutions to
bandwidth intensive businesses and the growing e-commerce market. The company
provides long distance and data services nationwide, with data
points-of-presence in Atlanta, Chicago, Cleveland, Dallas, Denver, Houston,
Las Vegas, Los Angeles, New York, Palo Alto, Calif.; Philadelphia, San Diego,
San Francisco, San Jose, Calif.; and Washington, D.C.
As a full-service provider, the company offers businesses local, long
distance and high-speed broadband transport that interconnects major markets
in the West, including Seattle, Sacramento, Calif.; Salt Lake City, Phoenix,
Boise, Idaho; Spokane, Wash.; and Portland, Ore.
Headquartered in Vancouver, Wash., the company employs 1,200 and generated
revenues of $101 million in 1998, up 65 percent from 1997. Additional
information about Electric Lightwave Inc. is located on the World Wide Web at
http://www.eli.net.
SOURCE Electric Lightwave Inc.
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Related links:
http://www.eli.net
Company News On-Call:
http://www.prnewswire.com/comp/117258.html or fax,
800-758-5804, ext. 117258
CONTACT:
Enid Lamey, 360-816-4682, or pager,
800-368-9102, or enid_lamey@eli.net, or Jack Hardy, 360-816-3602,
or pager, 800-391-3267, or jack_hardy@eli.net, both of Electric
Lightwave Inc.
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