NEW YORK — A 110 percent increase in revenues helped catapult Alloy Inc. into the black in the third quarter.For the three months ended Oct. 31, the New York-based Generation Y direct merchant reported a swing to net income of $11.6 million, or 28 cents a diluted share. That compares with a net loss of $2.7 million, or 11 cents, in last year’s quarter. Sales more than doubled to $93.2 million from $44.5 million.Sponsorship and other revenues were $52 million, up 309 percent, driven by a larger advertising sales force, a broader client base and a wider range of media services. Merchandise revenues were up 29.9 percent to $41.3 million, reflecting improved catalog circulation and productivity, improved merchandising and a full quarter of sales from Dan’s Competition versus one month last year."We enjoyed solid revenue contributions from both our sponsorship and merchandise businesses, with a particularly strong performance registered by our newspaper advertising business," Matt Diamond, chairman and chief executive, said in a statement. "In market conditions that are considered to be challenging, our integrated businesses continue to thrive."He noted youth spending remains robust and the demographic remains a highly desirable market for advertisers.As of Oct. 31, Alloy’s consolidated database of Generation Y consumers grew to more than 12.3 million names, of which roughly 4.1 million were established buyers, versus 8.5 million names and 2.2 million established buyers last year.Diamond is forecasting fourth-quarter earnings before taxes and amortization between $15 million and $16 million, merchandise revenues between $60 million and $62 million and sponsorship and other revenues between $34 million and $36 million. In 2003, he said he is expecting at least $190 million in merchandise revenues and $180 million in sponsorship revenues.

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