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Tucows Reports Continuing Strong Financial Results for Second Quarter of 2012

August 13th, 2012 | Written by Tucows | Comments Off
Filed Under: News Releases

- Company Achieves Ninth Consecutive Quarter of Record Revenue -

TORONTO, August 13, 2012 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), global provider of domain names and other Internet services, today reported its financial results for the second quarter ended June 30, 2012. All figures are in U.S. dollars.

Summary Financial Results

(In Thousands of US Dollars, Except Per Share Data)






3 Months

Ended

 June 30, 2012 

(unaudited)
3 Months

Ended

 June 30, 2011 

(unaudited)
6 Months

Ended

 June 30, 2012 

(unaudited)
6 Months

Ended

 June 30, 2011 

(unaudited)
Net revenue 28,153 23,046 55,690 45,601
Income before provision for income taxes and change  

in fair value of forward exchange contracts 
1,409 638 3,359 1,151
Net income for the period 696 566 2,360 1,294
Net earnings per common share 0.02 0.01 0.05 0.02
Net cash provided by operating activities 4 825 2,084 1,587

Summary of Revenues and Cost of Revenues

(In Thousands of US Dollars)

  Revenue Cost of Revenue





3 Months

Ended

 June 30, 2012 

(unaudited)
3 Months

Ended

 June 30, 2011 

(unaudited)
3 Months

Ended

 June 30, 2012 

(unaudited)
3 Months

Ended

 June 30, 2011 

(unaudited)
Wholesale        
  Domain Service 21,668 18,220 18,011 15,101
  Value-Added Services   2,589 2,208 537 507
Total Wholesale 24,257 20,428 18,548 15,608
Retail 2,298 1,278 1,357 419
Portfolio 1,598 1,340 216 198
Network, other costs   1,214 1,235
Network, depreciation and amortization costs     192 220
Total revenue/cost of revenue 28,153 23,046 21,526 17,680

NOTE: Beginning in the first quarter of 2012, Tucows reclassified its revenue streams into three distinct service offerings: Wholesale, Retail and Portfolio1. The realignment is intended to better reflect the manner in which these revenue streams are generated and assessed by management.

“The second quarter was our ninth consecutive quarter of record revenue, up 22% year-over-year,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Our strong performance was driven by meaningful growth in each of our three service categories. Wholesale continues to benefit from new service introductions and customer wins. Retail continues to grow as a result of our relentless focus on customer experience. Our Portfolio is providing predictable revenue streams with strong inventory sales.”

Mr. Noss continued, “With this kind of consistency in our performance and leverage in our business model, plus promising new opportunities on the horizon like gTLDs and Ting, Tucows is well positioned to deliver continued growth and to return capital to shareholders over the long term.”

Net revenue for the second quarter of 2012 increased 22% to a record $28.2 million from $23.0 million for the second quarter of 2011 and was driven by growth in each of the Company’s three service categories.

Net income for the second quarter of 2012 was $0.7 million, or $0.02 per share, compared with net income for the second quarter of 2011 of $0.6 million, or $0.01 per share.

Deferred revenue at the end of the second quarter of 2012 was $74.5 million, an increase of 12% from $66.8 million at the end of the second quarter of 2011 and an increase of 2% from $73.0 at the end of the first quarter of 2012.

Cash and cash equivalents at the end of the second quarter of 2012 were $4.5 million compared with $6.4 million at the end of the first quarter of 2012 and relatively unchanged from the end of the second quarter of 2011. During the second quarter of 2012, the Company generated cash flow from operations of $4,000 compared with $825,000 for the same quarter of 2011. Cash flow from operations during the second quarter of 2012 was impacted by the Company investing $1.1 million in applications to own and operate six new gTLD registries under ICANN’s new gTLD program. In addition, the Company used $1.6 million for the repurchase of stock under its ongoing normal course issuer bid, $0.3 million for principal repayments under its credit facility and invested $0.2 million in equipment purchases.

1Service Offerings: Wholesale, primarily branded as OpenSRS, is composed of revenue generated by the OpenSRS Domain Service and Other Value-Added Services, including hosted email, SSL and other trust certificates, bulk sale of domain names and advertising from the OpenSRS Domain Expiry Stream, web publishing tools, mobile phone services, third-party marketing funds, and billing software for ISPs. Retail is primarily composed of services to individuals and small businesses, including Hover, which generates revenue from the sale of domain name registration and email, and Ting, which generates revenue from mobile phone services. Portfolio includes revenue generated by the resale of names from the domain name portfolio and advertising revenue from the Company’s domain name portfolio and two large advertising-supported websites.

Conference Call

Tucows management will host a conference call today, Monday, August 13, 2012 at 5:00 p.m. (ET) to discuss the Company’s second quarter 2012 results. Participants can access the conference call via the Internet at tucowsinc.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 416-849-0833 or 1-855-859-2056 and enter the pass code 99525100 followed by the pound key. The telephone replay will be available until Monday, August 20, 2012 at midnight. To access the archived conference call as an MP3 via the Internet, go to tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (opensrs.com) manages over twelve million domain names and millions of value-added services through a reseller network of over 12,000 web hosts and ISPs. Hover (hover.com) is the easiest way for individuals and small businesses to manage their domain names and email addresses. Ting.com (https://ting.com) is a mobile phone service provider dedicated to bringing clarity and control to US mobile phone users. YummyNames (yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. In particular, this release includes forward looking statements regarding our expectations as to our financial results and the impact of our consistent growth and leverage. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

Tucows, OpenSRS, Hover, Ting, and YummyNames are registered trademarks of Tucows Inc. or its subsidiaries.

For further information:
Lawrence Chamberlain
TMX Equicom for Tucows Inc.
(416) 815-0700 ext. 257
lchamberlain@equicomgroup.com

Filed Under: News Releases
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Ting Offers Samsung Galaxy SIII on Sprint’s 4G LTE Network

August 2nd, 2012 | Written by Tucows | Comments Off
Filed Under: News Releases
Tagged: Ting

TORONTO, August 2, 2012 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names and other Internet services, today announced that its mobile phone service, Ting, has made the Samsung Galaxy SIII available for pre-order on its website at ting.com.

Devices will ship in three to six weeks. The 16GB Samsung Galaxy SIII is at $529, the 32GB at $579. These will be the first Ting devices to use Sprint’s 4G LTE network. Both the 16GB and 32GB are available in Pebble Blue and Marble White.

“It’s a killer device,” said Scott Allan, Director of Ting. “We have a lot of potential customers who have been waiting for this. They won’t have to wait much longer.”

To thank customers for waiting the three to six weeks, Ting will pick two of the first two hundred pre-orders and waive the cost of the device entirely.

Samsung Galaxy SIII shoppers are strongly encouraged to go to the savings calculator at ting.com/calculator to determine how quickly their monthly savings on service will cover the upfront cost of the device.

After that, pre-orders can be placed at ting.com/devices.

About Tucows

Tucows is a global Internet services company. OpenSRS (opensrs.com) manages over 11 million domain names and millions of email boxes through a reseller network of over 12,000 web hosts and ISPs. Hover (hover.com) is the easiest way for individuals and small businesses to manage their domain names and email addresses. Ting (ting.com) is a mobile phone service provider dedicated to bringing clarity and control to U.S. mobile phone users. YummyNames (yummynames.com) owns premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (tucows.com).

Media Contacts:
Emily Harris
Global Strategy Group
212-235-6239
eharris@globalstrategygroup.com

Filed Under: News Releases
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CORRECTION FROM SOURCE: Tucows Second Quarter Investment Community Conference Call is Monday, August 13, 2012 AT 5:00 P.M. (ET)

July 30th, 2012 | Written by Tucows | Comments Off
Filed Under: News Releases

TORONTO, July 30, 2012 – Further to its news release of July 26, 2012 which contained incorrect information, Tucows Inc. (TSX: TC, AMEX: TCX) today announced that it plans to report its second quarter fiscal 2012 financial results via news release on Monday, August 13, 2012 at approximately 4:00 p.m. (ET) and that it will host a conference call the same day at 5:00 p.m. (ET) to discuss the results and the outlook for the Company. The Company had previously announced in error that both events would occur on August 7.

Participants can access the conference call via the Internet at tucowsinc.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 416-849-0833 or 1-855-859-2056 and enter the pass code 99525100 followed by the pound key. The telephone replay will be available until Monday, August 20, 2012 at midnight. To access the archived conference call as an MP3 via the Internet, go to tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (opensrs.com) manages over eleven million domain names and millions of email boxes through a reseller network of over 12,000 web hosts and ISPs. Hover (hover.com) is the easiest way for individuals and small businesses to manage their domain names and email addresses. Ting (ting.com) is a mobile phone service provider dedicated to bringing clarity and control to US mobile phone users. YummyNames (yummynames.com) owns premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (tucows.com).

Tucows, OpenSRS, Hover, Ting, and YummyNames are registered trademark of Tucows Inc. or its subsidiaries.

For further information:
Lawrence Chamberlain
TMX Equicom
(416) 815-0700 ext. 257
lchamberlain@equicomgroup.com

Filed Under: News Releases
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Tucows Second Quarter Investment Community Conference Call is Tuesday, August 7, 2012 AT 5:00 P.M. (ET)

July 26th, 2012 | Written by Tucows | Comments Off
Filed Under: News Releases

TORONTO, July 26, 2012 – Tucows Inc. (TSX: TC, AMEX: TCX) plans to report its second quarter fiscal 2012 financial results via news release on Tuesday, August 7, 2012 at approximately 4:00 p.m. (ET). Tucows management will host a conference call the same day at 5:00 p.m. (ET) to discuss the results and the outlook for the company.

Participants can access the conference call via the Internet at tucowsinc.com/investors.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 416-849-0833 or 1-855-859-2056 and enter the pass code 99525100 followed by the pound key. The telephone replay will be available until Tuesday, August 14, 2012 at midnight. To access the archived conference call as an MP3 via the Internet, go to tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (opensrs.com) manages over eleven million domain names and millions of email boxes through a reseller network of over 12,000 web hosts and ISPs. Hover (hover.com) is the easiest way for individuals and small businesses to manage their domain names and email addresses. Ting (ting.com) is a mobile phone service provider dedicated to bringing clarity and control to US mobile phone users. YummyNames (yummynames.com) owns premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (tucows.com).

Tucows, OpenSRS, Hover, Ting, and YummyNames are registered trademark of Tucows Inc. or its subsidiaries.

For further information:

Lawrence Chamberlain
TMX Equicom
(416) 815-0700 ext. 257
lchamberlain@equicomgroup.com

Filed Under: News Releases
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Ting To Launch Shared Data Plan Four Months Ago

June 13th, 2012 | Written by Tucows | Comments Off
Filed Under: News Releases
Tagged: Ting

TORONTO, June 13, 2012 /CNW/ – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names and other Internet services, today announced that its mobile phone service Ting would unveil a shared data plan on February 2, 2012, four months prior to this announcement.

“Putting multiple devices on one plan was pretty straightforward,” explained Ken Schafer, EVP Products, “the main challenge was figuring out the time travel part.”

Starting February 2, 2012, Ting customers will be able to share data, as well as voice and texts, across unlimited devices on one account. Each active device will cost just $6 a month. The value gets better as the total usage increases, amounting to huge potential savings for businesses and families. There are never any overage penalties or premiums and there are no limits or fees on features like tethering.

“Again, we think this just makes sense for mobile phone users,” explained Tucows CEO Elliot Noss. “People are wasting a ton of time and money on multiple accounts.”

“I think we showed tremendous initiative and hustle by launching this in the past. It appears our competitors will be following suit in the near future.”

While the Ting announcement actually comes a day after the big shared data plan announcement from Verizon, the Ting plan itself will precede Verizon’s June 28 launch by nearly five months.

Check out the Ting blog at ting.com/blog for the complete story, the Ting plans at ting.com/plans for more details on rates and features and the Ting savings calculator ting.com/calculator to see how much money you could be saving.

Noss also hinted at plans to launch a shareware site.

About Tucows

Tucows is a global Internet services company. OpenSRS (opensrs.com) manages over 11 million domain names and millions of email boxes through a reseller network of over 12,000 web hosts and ISPs. Hover (hover.com) is the easiest way for individuals and small businesses to manage their domain names and email addresses. Ting (ting.com) is a mobile phone service provider dedicated to bringing clarity and control to U.S. mobile phone users. YummyNames (yummynames.com) owns premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (tucows.com).

For further information:

Media Contacts:
Emily Harris
Global Strategy Group
212-235-6239
eharris@globalstrategygroup.com

Filed Under: News Releases
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CISPA and protecting your personal online freedom

May 24th, 2012 | Written by Tucows | 1 Comment »
Filed Under: Policy
Tagged: CISPA, PIPA, SOPA

During the SOPA / PIPA debacle, Internet denizens came out in droves to beat the bills back and protect our collective online rights. We, as in the Internet at large, said that the battle was won but the war would continue. The Cyber Intelligence Sharing and Protection Act is the latest attempt at an affront to your online freedom.

CISPA hits the senate floor for voting in early June having already passed the US House of Representatives. If passed by the Senate, the last hope to get CISPA sent back to the proverbial drawing board would be a White House veto.

If passed, CISPA would provide broad authority to government organizations to collect and pass information between agencies. “Cyber threat information,” as the bill puts it. Ostensibly, CISPA is intended as a response to cyber security threats from hackers, terrorists or criminals. CISPA would give broad allowances for government agencies to pass our private information and communications between themselves. Currently, doing so leaves said agencies open to lawsuits from private citizens. Perhaps more disturbing, it allows (or could force) private organizations to pass information to government agencies under the same provisions.

The language in CISPA is in some cases so vague that it would be too easy to put to ill use. The powers afforded are too broad and would allow the government and private corporations like Facebook, Google et. al. to pass private information freely, with impunity. All under the guise of protecting against a “cyber threat.” The language explaining what exactly constitutes a cyber threat is also too broadly and loosely defined (see page 15 of the Cyber Intelligence Sharing and Protection Act) and potentially sacrifices too many of our personal freedoms.

Our issues with CISPA are many. As concerned Internet citizens, we worry about what it would mean for personal online privacy—both yours and our own. As an Internet company that takes your privacy very (very) seriously, we worry about our ability to protect your online privacy, for our part, will be severely compromised.

If you feel, as we do, that CISPA is an ill conceived and too loosely defined a bill, please make your voices heard.

At Tucows, we feel that the Internet—whether accessed on your computer, on your smartphone or via any other vehicle—is vitally important. CISPA is a very serious threat to the freedom and privacy we take for granted online.

Filed Under: Policy

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