CHARLOTTE, N.C. — Telecommunications provider US LEC (NASDAQ: CLEC), which is in the process of merging with a larger New York firm, reported record quarterly profits of $105.4 million on Tuesday.

Third-quarter revenues were up 7 percent compared to 2005.

Losses, however, increased to $13.2 million, or 42 cents per share, from $7.4 million, or 24 cents per share, from 2005. Costs were driven up largely by $5.1 million in costs due to its pending merger.

US LEC, which has customers across the South and Mid-Atlantic states, also increased its base to 28,506 businesses.
Closing is expected soon with privately held PAETEC Holding Corp.