Shares of Chinese telecom services provider, Linktone Ltd. (Nasdaq: LTON) were up as much as 43 percent from Tuesday’s closing price in morning trading on Wednesday after the company announced a 43 percent increase in third quarter revenue, compared to the same period last year.
For the quarter ended September 30, 2010, Linktone reported gross revenues of $19.8 million, a 17 percent sequential increase compared with$16.9 million in the second quarter of 2010, and 43 percent year-over-year growth compared with $13.8 million in the third quarter of 2009. Gross profit for the quarter was $6.9 million, up 33 percent from $5.2 million in gross profit in the same quarter a year ago. Operating income in the quarter increased to $1.0 million, compared with a loss of $0.1 million for the third quarter of 2009. Non-GAAP net income was $0.7 million or $0.02 per ADS, compared to $0.4 million or $0.01 per ADS in the third quarter of 2009.
“As a result of effective marketing initiatives and our efforts to differentiate our services during the highly competitive season of summer school vacation, we achieved another strong quarter, with revenue from all segments of VAS data-related services, audio-related services and sales of licensed edutainment andNon-GAAP net income was $0.7 million or $0.02 per ADS, compared to $0.4 million or $0.01 per ADS in the third quarter of 2009. entertainment products achieved sequential growth,” said Linktone’s Chief Executive Officer Hary Tanoesoedibjo in a statement. “Our healthy cash balance remains a valuable asset as we continue to assess opportunities for growth, expansion and diversification.”
For the fourth quarter ending December 31, 2010, Linktone expects gross revenues to be in the range of $20.0 million to $21.0 million including revenue from its value-added services, distribution of licensed products and other services.
Linktone is one of the leading providers of wireless interactive entertainment services to consumers in China and Southeast Asia. Linktone provides a diverse portfolio of services to wireless consumers and corporate customers, with a particular focus on media, entertainment, communications and edutainment.
Shares of Linktone Ltd. are up about 36 percent over the past three months.