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Linktone (ticker: LTON) reported Q3 2005 results that beat consensus earnings per ADS estimates by $0.02. Key stats from the quarter:

Q3 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

  • Gross revenue rose 54.5% to $20.5 million, and rose 17% sequentially.
  • Net revenue rose 56.6% to $19.7 million. Consensus estimate of $17.6 million.
  • SMS revenue rose 31.7% sequentially to $13.7 million.
  • Gross margin was 61.4% vs 67.6%.
  • Operating expenses rose 43.9% to $8.3 million.
  • Product development expenses rose 148.2% to $1.7 million.
  • Sales and marketing expenses rose 57.9% to $3.9 million.
  • Stock-based compensation expenses rose 3.9% to $555,042.
  • Other general and administrative expenses rose 2.9% to $2.1 million.
  • Operating income rose 38.9% $3.8 million.
  • Operating margin was 19.4% vs 21.8%.
  • Net income rose 43.2% to $4.1 million.
  • Net margin was 20.5% vs 22.5%.
  • Diluted earnings per ADS of $0.15 vs $0.10.
  • Adjusted diluted earnings per ADS of $0.17 vs $0.13, and vs consensus estimate of $0.15.

Balance Sheet
(as of September 30, 2005)

  • Cash and equivalents of $25.5 million.
  • Short-term investments of $49.9 million.

Q4 Guidance

  • GAAP net income of approximately $0.15 per fully diluted ADS.
  • Non-GAAP net income of approximately $0.17 per fully diluted ADS. Consensus estimate of $0.16.

FY 2005 Guidance

  • GAAP net income of approximately $0.54 per fully diluted ADS.
  • Non-GAAP net income of approximately $0.63 per fully diluted ADS. Consensus estimate of $0.54.

LTON chart.

Source: Linktone Beats By $0.02; Crushes Revenue Estimates; Guides Above Consensus; Stock Up 6% in After-Hours Trading (LTON 3Q05 Earnings)