Paetec Holding Corp. Thursday reported strong gains, showing a triple-digit increase in fourth-quarter earnings and double-digit leaps in revenues for the final quarter and earnings and revenues for the full year.
In the fourth quarter, Paetec posted net income of $15.5 million, up 490 percent over the $2.6 million in net income the company reported a year earlier. Revenues of $288.6 million showed a 91 percent increase over revenues of $151.5 million in the final quarter of 2006.
Full-year net income of $10.5 million was up 39 percent from $7.8 million. Paetecâ€™s 2007 revenues of $1.04 billion showed a 78 percent increase over the companyâ€™s $586.3 million in 2006 revenues.
The company largely attributed revenue gains to dollars added by its 2007 merger with US LEC Corp. But it also cited strong sales of T-1 Internet connections and voice over Internet protocol telephone services as significant contributors.
Not reflected in the report is Paetecâ€™s recently completed acquisition of McLeod USA Inc., which last year turned in a $46.4 million loss on revenues of $499.5 million.
The purchase of the Iowa-based competitive local exchange carrier for the first time gives Paetec coast-to-coast coverage and adds a fiber-optic network covering several states to Paetecâ€™s infrastructure.
Combined Paetec/McLeod USA results in 2007 on a pro forma basis would have produced a $36.2 million loss on revenues of $1.6 billion, Paetec said.
Paetec stock (Nasdaq: PAET) shortly after midday was trading for $7.94 a share, down 5 cents.
Now based in Perinton, Paetec plans to build a downtown Rochester headquarters on the site currently occupied by Midtown Plaza. The company employs approximately 4,000, including some 700 in the Rochester area.
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