Data center and telecommunications services provider Paetec, whose board has recently agreed to sell the company to Windstream, finished the second quarter of 2011 with 28% year-over-year revenue growth, but with an bigger net loss than it reported for the second quarter of last year.

Paetec reported a net loss of US$9.4m, compared to $7.5m it reported for Q2 2010. The company explained the increase in net loss by increases in depreciation and amortization expenses that resulted from its acquisition of Cavalier Telephone last year, whose assets included a lot of fiber-optic infrastructure.

Another reason for growth in net loss cited by Paetec was an increase in interest expenses.

Arunas Chesonis, Paetec chairman and CEO, said the company was pleased with its Q2 results. "The ongoing integration of Cavalier Telephone is moving along smoothly with related synergies continuing to positively impact margins," he said.

Paetec has recently made another acquisition. In February, it signed an agreement to buy Xeta, a company that installs and services advanced communication technologies for businesses, for about $61m.

Windstream, a large US telecom, announced its agreement to buy Paetec for $2.3bn in early August. The combined company is expected to have more than $6bn in annual revenue.

Paetec's revenue for Q2 2011 was about $507m.