[GST Telecommunications Closes Sale of Action Telecom Assets]
VANCOUVER, Wash., Nov. 5 /PRNewswire/ -- GST Telecommunications, Inc., a leading Integrated Communications Provider (ICP) in California and the western United States, today announced that it has completed the sale of the long distance and interconnect equipment assets of Action Telecom, Inc. to NTS Communications.
Terms of the sale were not disclosed. GST retains Action's Network Analysis Management System (NAMS) product division.
"The divestiture of these Action Telecom assets allows us to better focus on our core ICP operations -- providing integrated communications and enhanced data offerings on our next-generation VITA (Virtual Integrated Transport and Access) network," stated Joe Basile, president and chief executive officer of GST. "Off-net services are not the type of high-quality, high-margin service offerings that will drive our business forward."
Action's long distance and equipment interconnect business generated approximately $2.1 million in revenues on a quarterly basis, and reported Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of approximately $(253,000) for the third quarter of 1999.
The sale of the Action Telecom assets is the third in a series of divestitures, including the sale of most of the properties of GST Home, the Company's residential services division, in April of 1999, and its assets in Guam in July of 1999. GST also intends to divest itself of its extensive operations and facilities in Hawaii, and expects to sign an agreement to sell those assets by the end of 1999. |
