Shares of value added telecom service provider, Linktone Ltd. (Nasdaq: LTON) were up about 29 percent in mid-day trading on Wednesday after the company announced strong revenue growth and a slight decrease in third quarter profit, over the same period last year.

Linktone reported GAAP net income of $600,000 or $0.02 per ADS for the third quarter, compared to $700,000 or $0.02 per ADS in the third quarter of last year. Gross revenue increased 43 percent to $19.8 million from $13.8 million a year ago.

Linktone anticipates gross revenues to fall in a range between $20 million and $21 million in Q4 of this year.

Cash and cash equivalents as well as short-term investments available for sale totaled $89.2 million, or $2.12 per fully diluted ADS, as of September 30, 2010, compared with $88.1 million as of June 30, 2010.

“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 and entertainment products achieved sequential growth,” Chief Executive Officer Hary Tanoesoedibjo said in a statement. “Our healthy cash balance remains a valuable asset as we continue to assess opportunities for growth, expansion and diversification.”

Linktone seeks to capitalize on the opportunity created by the demand for mobile data services in China by offering a wide range of content and applications to mobile phone users in China and Southeast Asia. Linktone’s business model is based on revenue-sharing relationships with China’s telecom operators, including China Mobile and China Unicom, the two major mobile operators, and China Telecom and China Netcom, the two major PHS operators in China. Linktone offers a diversified portfolio that includes SMS-based wireless value added services, including ringtones, icons and screen savers, multiplayer games, horoscopes, jokes, fan clubs and news.