Maxxcom Inc. reported net income of $600,000 for the third quarter, up from a loss of $5.7 million last year.

The advertising agency reported gross billings of $148.1million for the quarter ended Sept. 30, up 8% from $ 137.6 million last year.

The Toronto-based shop reported gross income of $66.3 million for the quarter ended Sept. 30, up 3% from to $64.5 million last year. Maxxcom generated 66% of its gross income in the U.S., 25% in Canada and 9% in the U.K. This compares with 68%, 25% and 7%, respectively, in the same period last year.

"We are encouraged by the ongoing improvement in the operating performance of our businesses," said CEO Harold Reiter, in a statement. "With our partners, we have continued to manage our cost structures through 2002, and the benefits are beginning to be realized.