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): June 29, 2001
CELLULAR TECHNICAL SERVICES COMPANY, INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-19437 11-2962080
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File No.) Identification No.)
2815 Second Avenue, Suite 100, Seattle, Washington 98121
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (206) 443-6400
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 5. OTHER EVENTS
On June 29, 2001, Cellular Technical Services Company, Inc. (the
"Company") received approximately $1,000,000, plus attorney's fees, from a
former customer of the Company in satisfaction of an arbitration award (the
"Award") in favor of the Company. The Company issued a press release regarding
the Award on June 26, 2001 that is filed herewith as an exhibit. The receipt of
the Award will be reflected in the Company's financial statements for the
quarter ending June 30, 2001.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Exhibits
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99.1 Press Release dated June 26, 2001
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Dated: July 10, 2001
Cellular Technical Services Company, Inc.
By: /s/ Bruce R. York
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Name: Bruce R. York
Title: Vice President and Chief
Financial Officer
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EXHIBIT INDEX
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Exhibit No. Description
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99.1 Press Release dated June 26, 2001
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1
Exhibit 99.1
FOR IMMEDIATE RELEASE
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Company Contact: Bruce R. York
Vice President and CFO
(206) 733-8180
CELLULAR TECHNICAL SERVICES ANNOUNCES FAVORABLE ARBITRATION AWARD
Seattle, June 26, 2001 - Cellular Technical Services Company, Inc. (Nasdaq NM
Symbol CTSC) ("CTS"), a leading provider of products and services for the
telecommunications industry, today announced the conclusion of an arbitration
proceeding it had initiated against a former customer. Under the terms of the
arbitration award, which is subject to appeal, CTS is to receive damages and
interest totaling approximately $1.0 million or approximately $0.44 cents per
share, plus attorney's fees.
Stephen Katz, CTS Chairman and CEO stated, "A negotiated settlement would have
been preferred, but unfortunately that was not possible. The timing for
recognition of the income will be determined by the finalization of all events
of the award including the timing of the payment to be received and any appeals
process."
CTS provides real-time information processing and management solutions for the
telecommunications industry. Over the past 12 years, CTS has used its extensive
experience with real-time wireless call processing to create technologically
advanced solutions for this industry, including integrated solutions for fraud
management. Today, CTS is building a more diversified, vertically structured
organization with a focus on providing a wide range of products and services.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release may
contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties that could
cause actual results for CTS or its affiliates to differ materially from those
expressed or implied in the applicable statements. These risks and uncertainties
include but are not limited to: dependence on analog cellular networks for
certain products and services; vulnerability to rapid industry change and
technological obsolescence; limited customer base and reliance on a relatively
small number of customers and customer contracts; dependence on a limited number
of existing products and services; uncertainty of continued demand for and
market penetration of its existing products and services under existing and
future contracts; uncertainty in its ability to timely develop, introduce and
gain acceptance of new products and services; uncertainty of the demand for and
market penetration of new products and services; the possible impact of
competitive products and pricing; the risk that its current and future products
may contain errors or be affected by technical problems that would be difficult
and costly to detect and correct; manufacturing difficulties, including reliance
on a limited number of outside vendors for key components and processes;
potential difficulties in managing changing business conditions; dependence on
key personnel; the availability of financing; and other risks described in CTS'
filings with the Securities and Exchange Commission.