Phonetime Inc. says a rise in operating expenses partially offset an increase in revenue in the third quarter.

The long-distance service provider eked out net and comprehensive earnings of $31,473 or less than a penny a share in the period ended Sept. 30, when operating expenses rose 18 per cent versus the corresponding quarter last year. That compared with $751,102 or a penny a share a year earlier.

Phonetime’s revenues, which mainly came from higher sales volume at its wholesale division, totalled $44.4 million. That was up 14 per cent from $39.2 million last year.

At the end of September, Phonetime had cash and short-term investments totalling $300,000.