PAETEC Posts Wider Loss

PAETEC Holding Corp., the telecommunications provider that is being acquired by Windstream Corp., on Friday reported a wider third-quarter loss, but revenues rose significantly over the same period a year ago thanks largely to an acquisition.

Revenues climbed 31.3 percent to $536.3 million, primarily due to PAETEC’s December 2010 acquisition of Cavalier Telephone. However, the company’s net loss grew from $14.8 million in the third quarter of 2010 to $17.1 million.

“Higher operating margins in the current quarter were offset by higher integration and merger costs, deprecation and amortization, and interest expense,” the company explained.

New York-based PAETEC projects annual revenues of $2.025-$2.125 billion and adjusted EBITDA of $375-$395 million.

Windstream anticipates closing its acquisition of PAETEC by the end of the year.

PAETEC, which had $94.8 million in cash and cash equivalents as of Sept. 30, did not host a conference call on its 3Q earnings.

Leave a comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


In our Channel Influencer Awards digital issue, we highlighted eight technologies ready to "take off" in the channel this year. Which two will take off the most?

View Results

Loading ... Loading ...
The ID is: 84079