Author Archives: tucows

10th Anniversary Telecommunications Forum, February 24-25, 2014 in Ottawa, Canada

tf2014

Tucows CEO Elliot Noss has been invited to speak at the 10th Anniversary Telecommunications Forum on February 24-25, 2014 in Ottawa. He’ll be delivering a lunchtime keynote presentation on February 25 titled, “The Dire State of Networks in Canada, and How We Can Take Advantage of It.”

His presentation is likely to get the attention of a few carriers, some policy makers and industry players and a whole lot of potential customers.

We’ve had great success in the US market with Ting, and we’d love to help push for change in the Canadian market as well.

We’ve secured a 10% discount off the regular conference fee. Use discount code #19382 when you register.

Visit http://www.insightinfo.com/tele/ for more information and to register for the event.

Tucows Reports Financial Results for the Third Quarter of 2013

— Company Achieves Fourteenth Consecutive Quarter of Record Revenue/Ting Continues Strong Momentum —

TORONTO, November 13, 2013 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names and other Internet services, today reported its financial results for the third quarter ended September 30, 2013. All figures are in U.S. dollars.

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

3 Months Ended Sept. 30, 2013 (unaudited) 3 Months Ended Sept. 30, 2012 (unaudited) 9 Months Ended Sept. 30, 2013 (unaudited) 9 Months Ended Sept. 30, 2012 (unaudited)
Net revenue 35,637 29,246 96,795 84,936
Income before provision for income taxes and change in fair value of forward exchange contracts 3,565 1,597 4,944 4,956
Net income 2,593 1,635 3,258 3,995
Net earnings per common share $0.06 $0.04 $0.08 $0.09
Net cash provided by operating activities 3,664 2,237 7,052 4,321

Summary of Revenues and Cost of Revenues
(In Thousands of US Dollars)

Revenue Cost of Revenue
3 Months Ended Sept. 30, 2013 (unaudited) 3 Months Ended Sept. 30, 2012 (unaudited) 3 Months Ended Sept. 30, 2013 (unaudited) 3 Months Ended Sept. 30, 2012 (unaudited)
Wholesale
Domain Services 22,003 22,268 18,581 18,645
Value-Added Services 2,606 2,603 484 532
Total Wholesale 24,609 24,871 19,065 19,177
 
Retail 6,861 2,965 4,543 2,064
Portfolio ¹ 4,167 1,410 661 205
 
Network, other costs - - 1,193 1,159
Network, depreciation and amortization costs - - 176 193
Total revenue/cost of revenue 35,637 29,246 25,638 22,798

¹ Portfolio revenue includes the net amounts received from the previously announced confidential arrangements related to the Company’s withdrawal of its applications under the ICANN New gTLD Program for .media and .marketing. The Company continues to be involved in the ICANN new gTLD Program and holds a minority interest in the contested .online, .group, .tech and .store strings.

“Our financial results for the third quarter were once again demonstrative of the consistency and reliability in our business, alongside our ability to generate growth, as we delivered our fourteenth consecutive quarter of record revenue, driven by solid performance across our business,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Each of our Wholesale, Hover and Portfolio businesses continue to perform well.”

“Ting saw another quarter of tremendous customer growth, adding 11,000 accounts and 16,000 devices during the quarter, to bring these totals to 36,000 accounts and 56,000 devices at the end of September. Importantly, we are consistently delivering on our commitment to the very highest levels of customer service, while maintaining our low customer acquisition costs and continuing to generate attractive gross margin. All of this continues to position Ting to achieve breakeven during the fourth quarter this year.”

Net revenue for the third quarter of 2013 increased 22% to a record $35.6 million from $29.2 million for the third quarter of 2012.

Net income for the third quarter of 2013 was $2.6 million, or $0.06 per share, compared with $1.6 million, or $0.04 per share, for the third quarter of 2012. Net income for the third quarter of 2013 included the benefit of the previously announced confidential arrangements related to the Company’s withdrawal of its applications under the ICANN New gTLD Program for .media and .marketing. Net income for the third quarter included a gain on foreign exchange contracts of $28,000 compared with a gain on foreign exchange contracts of $0.6 million in the third quarter of 2012. Net income for the third quarter of 2013 also included the incremental investment of approximately $1.2 million made during the quarter for the acquisition and support of Ting customers.

Deferred revenue at the end of the third quarter of 2013 was $72.0 million, a decrease of 2% from $73.3 million at the end of the third quarter of 2012 and a decrease of 1% from $73.0 million at the end of the second quarter of 2013.

Cash and cash equivalents at the end of the third quarter of 2013 were $11.5 million compared with $6.5 million at the end of the second quarter of 2013 and $5.0 million at the end of the third quarter of 2012. The increase in cash and cash equivalents of $5.0 million when compared to the second quarter of 2013 resulted from the generation of $3.7 million in cash flow from operations and the receipt of $2.2 million from the exercise of stock options.

These were partially offset by the use of $0.6 million for principal repayments under the Company’s credit facility and investment of $0.2 million in equipment purchases.

Conference Call

Tucows management will host a conference call today, Wednesday, November 13, 2013 at 5:00 p.m. (ET) to discuss the Company’s third quarter 2013 results. Participants can access the conference call via the Internet at http://tucows.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 91095919 followed by the pound key. The telephone replay will be available until Wednesday, November 20, 2013 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://tucows.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, in particular, our expectations for Ting and its impact on our financial performance. 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, including the acceptance of Ting in the market. Information about other 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 is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

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

Tucows Third Quarter Investment Community Conference Call is Wednesday, November 13, 2013 AT 5:00 P.M. (ET)

TORONTO, October 30, 2013 – Tucows Inc. (TSX: TC, AMEX: TCX) plans to report its third quarter fiscal 2013 financial results via news release on Wednesday, November 13, 2013 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 http://www.tucows.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 91095919 followed by the pound key. The telephone replay will be available until Wednesday, November 20, 2013 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://www.tucows.com/investors/.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

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

Tucows Reports Financial Results for the Second Quarter of 2013

— Company Achieves Thirteenth Consecutive Quarter of Record Revenue/Ting Continues Strong Momentum —

TORONTO, August 8, 2013 — Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names and other Internet services, today reported its financial results for the second quarter ended June 30, 2013. All figures are in U.S. dollars.

Summary Financial Results

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

3 Months Ended June 30, 2013 (unaudited) 3 Months Ended June 30, 2012 (unaudited) 6 Months Ended June 30, 2013 (unaudited) 6 Months Ended June 30, 2012 (unaudited)
Net revenue 31,173 28,153 61,158 55,690
Income before provision for income taxes and change in fair value of forward exchange contracts 948 1,409 1,379 3,359
Net income 588 696 664 2,360
Net earnings per common share $0.01 $0.02 $0.02 $0.05
Net cash provided by operating activities 2,971 4 3,388 2,084

Summary of Revenues and Cost of Revenues

(In Thousands of US Dollars)

Revenue Cost of Revenue
3 Months Ended June 30, 2013 (unaudited) 3 Months Ended June 30, 2012 (unaudited) 3 Months Ended June 30, 2013 (unaudited) 3 Months Ended June 30, 2012 (unaudited)
Wholesale
   Domain Services 21,800 21,668 18,485 18,011
   Value-Added Services 2,559 2,589 520 537
Total Wholesale 24,359 24,257 19,005 18,548
Retail 5,735 2,298 3,773 1,356
Portfolio 1,079 1,598 230 216
Network, other costs - - 1,270 1,214
Network, depreciation and amortization costs - - 187 192
Total revenue/cost of revenue 31,173 28,153 24,465 21,526

 

“The second quarter was once again demonstrative of the consistency and reliability in our business as we achieved our thirteenth consecutive quarter of year-over-year revenue growth, achieving another record,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Our Wholesale and Portfolio businesses continue to perform well, while Hover delivered another quarter of outstanding growth.”

“The strong momentum at Ting continues with another record quarter for customer additions – more than 9,000 – propelling our total customer count past the 25,000 mark, and the number of devices to nearly 40,000 as of the end of June. Gross margin per account remains strong and our customer acquisition costs remain low. As we get more customers and more experience, we are improving our service and our processes, further strengthening Ting’s unique value proposition. While our investment to support the success of Ting is dampening our results in the short term, as previously reported, we expect Ting to cross over the breakeven threshold in the fourth quarter this year.”

Net revenue for the second quarter of 2013 increased 11% to a record $31.2 million from $28.2 million for the second quarter of 2012.

Net income for the second quarter of 2013 was $0.6 million, or $0.01 per share, compared with $0.7 million, or $0.02 per share, for the second quarter of 2012. Net income for the second quarter of 2013 benefitted from recognition of a $0.5 million Interactive Digital Media Tax Credit $460,000 from the Ontario government. Net income for the second quarter of 2013 also included the incremental investment of approximately $1.3 million made during the quarter for the acquisition and support of Ting customers, as well as the loss on foreign exchange contracts of $0.1 million. This compares with a loss on foreign exchange contracts of $0.4 million in the second quarter of 2012.

Deferred revenue at the end of the second quarter of 2013 was $73.0 million, a decrease of 2% from $74.5 million at the end of the second quarter of 2012 and an increase of 1% from $72.4 million at the end of the first quarter of 2013.

Cash and cash equivalents at the end of the second quarter of 2013 were $6.5 million compared with $4.3 million at the end of the first quarter of 2013 and $4.5 million from the end of the second quarter of 2012. The increase in cash and cash equivalents compared to the first quarter of 2013 is the result of generation of $3.0 million in cash flow from operations and $0.3 million from the exercise of stock options, which were partially offset by the use of $0.6 million for principal repayments under the Company’s credit facility and investment of $0.5 million in equipment purchases. Cash flow from operations for the second quarter of 2013 was positively impacted by changes in working capital resulting from the timing of payments in the normal course of business.

Conference Call

Tucows management will host a conference call today, Thursday, August 8, 2013 at 5:00 p.m. (ET) to discuss the Company’s second quarter 2013 results. Participants can access the conference call via the Internet at www.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 22224502 followed by the pound key. The telephone replay will be available until Thursday, August 15, 2013 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, in particular, our expectations for Ting and its impact on our financial performance. 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, including the acceptance of Ting in the market. Information about other 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 is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

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

Tucows Second Quarter Investment Community Conference Call is Thursday, August 8, 2013 AT 5:00 P.M. (ET)

TORONTO, July 25, 2013– Tucows Inc. (TSX: TC, AMEX: TCX) plans to report its second quarter fiscal 2013 financial results via news release on Thursday, August 8, 2013 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 hhttp://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 22224502 followed by the pound key. The telephone replay will be available until Thursday, August 15, 2013 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

Lawrence Chamberlain
TMX Equicom
(416) 815-0700 ext. 257

lchamberlain@tmxequicom.com

Tucows Reports Financial Results for the First Quarter of 2013

— Company Achieves Twelfth Consecutive Quarter of Record Revenue —

TORONTO, May 15, 2013 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names and other Internet services, today reported its financial results for the first quarter ended March 31, 2013. All figures are in U.S. dollars.

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

3 Months Ended Mar. 31, 2013 (unaudited) 3 Months Ended Mar. 31, 2012 (unaudited)
Net revenue 29,985 27,537
Income before provision for income taxes and change in fair value of forward exchange contracts 431 1,950
Net income 77 1,664
Net earnings per common share $0.00 $0.04
Net cash provided by operating activities 416 2,081

Summary of Revenues and Cost of Revenues (In Thousands of US Dollars)

Revenue Cost of Revenue
3 Months Ended Mar. 31, 2013 (unaudited) 3 Months Ended Mar. 31, 2012 (unaudited) 3 Months Ended Mar. 31, 2013 (unaudited) 3 Months Ended Mar. 31, 2012 (unaudited)
Wholesale
Domain Services 21,896 21,108 18,454 17,620
Value-Added Services 2,689 2,689 562 507
Total Wholesale 24,585 23,797 19,016 18,127
Retail 4,266 1,849 2,861 930
Portfolio 1,134 1,891 201 210
Network, other costs - - 1,254 1,257
Network, depreciation and amortization costs - - 173 183
Total revenue/cost of revenue 29,985 27,537 23,505 20,707

 

“The first quarter was a solid start to 2013, highlighted by our twelfth consecutive quarter of year-over-year revenue growth to another record total,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “The consistency and reliability of the more mature parts of our business have helped us return capital to shareholders while launching new growth opportunities such as Hover a few years ago and, to a greater extent, Ting just last year. Hover continues to generate healthy gross margins and year-over-year growth in excess of 20%. We are even more excited about Ting, which is now demonstrating real momentum.

Mr. Noss continued, “Everything on Ting is moving in the right direction. Our customer base grew by 2,000 in Q2 2012, 3,000 in Q3, 5,000 in Q4 and now over 6,300 in Q1 2013. Gross margin per account is growing as customers gain confidence in the service and add additional devices. More customers are referring more of their friends to Ting. Timelines are shortening between our network provider, Sprint, getting coveted devices like the HTC One and the Samsung Galaxy 4 and us offering these devices to our customers. With all these trends in our favor, we have every reason to believe our momentum will continue.”

Net revenue for the first quarter of 2013 increased 9% to a record $30.0 million from $27.5 million for the first quarter of 2012.

Net income for the first quarter of 2013 was $0.1 million, or $0.00 per share, compared with $1.7 million, or $0.04 per share, for the first quarter of 2012. The decrease was primarily the result of the incremental investment of approximately $1.0 million made in the first quarter of 2013 for the acquisition and support of Ting customers, as well as the negative impact of a loss on foreign exchange contracts of $0.2 million in the first quarter of 2013 compared with a gain on foreign exchange contracts of $0.6 million in the first quarter of 2012. In addition, net income for the first quarter of 2012 benefitted from other income of $0.5 million resulting from the sale of certain intangible assets with no book value which was not repeated in the first quarter of 2013.

Deferred revenue at the end of the first quarter of 2013 was $72.4 million, a decrease of 1% from $73.0 million at the end of the first quarter of 2012 and an increase of 2% from $71.0 million at the end of the fourth quarter of 2012.

Cash and cash equivalents at the end of the first quarter of 2013 were $4.3 million compared with $6.4 million at the end of the fourth quarter of 2012 and $6.4 million from the end of the first quarter of 2012. During the first quarter of 2013, the Company generated cash flow from operations of $0.4 million compared with $2.1 million for the same quarter of 2012. The decrease in cash flow from operations is primarily attributable to changes in working capital, due mainly to the timing of payments in the normal course of business. The Company used $6.5 million to repurchase shares under it modified “Dutch auction” tender that concluded on January 7, 2013, under which the Company repurchased 4,114,121 million shares at a purchase price of $1.50 per share. The Company also used $0.8 million for principal repayments under its credit facility and invested $0.4 million in equipment purchases. The repurchase of shares was partially funded through a drawdown of $5.2 million on the Company’s credit facility.

Conference Call

Tucows management will host a conference call today, Wednesday, May 15, 2013 at 5:00 p.m. (ET) to discuss the Company’s first quarter 2013 results. Participants can access the conference call via the Internet at www.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 59299893 followed by the pound key. The telephone replay will be available until Wednesday, May 22, 2013 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, in particular, our expectations for Ting and its impact on our financial performance. 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, including the acceptance of Ting in the market. Information about other 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 is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

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

Tucows First Quarter Investment Community Conference Call is Wednesday, May 15, 2013 AT 5:00 P.M. (ET)

TORONTO, May 1, 2013– Tucows Inc. (TSX: TC, AMEX: TCX) plans to report its first quarter fiscal 2013 financial results via news release on Wednesday, May 15, 2013 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 http://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 59299893 followed by the pound key. The telephone replay will be available until Wednesday, May 22, 2013 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

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

Take Action for Fairer and Better Laws Governing the Internet

This week, we’re asking for you help to sound the alarm over a proposal currently making its way through the US House Judiciary Committee that would expand and harshen certain parts of the Computer Fraud and Abuse Act (CFAA).

There is a possibility that the proposed changes to the CFAA could come up for a vote as early as this week, according to Demand Progress.

The amendments proposed would allow for the CFAA to be interpreted so broadly that all sorts of mundane Internet use could be criminalized, even going as far as to criminalize breaking a website’s fine print terms of service agreement. Something as simple as creating a Facebook page for your cat, or adding a couple of inches to your height in your online profile for an Internet dating service could expose you to prosecution for a federal crime under the CFAA.

Justice for Aaron Swartz

You’ll note a “Justice for Aaron” badge or banner on many Tucows sites this week that alerts visitors to the need for action, directing them to a site set up to explain the situation and asking them to contact their elected lawmakers.

Aaron Swartz was an Internet activist who was prosecuted under the CFAA in 2011 for downloading academic journals from a system called JSTOR. Earlier this year, Aaron committed suicide due, in part, to the pressure of a potential jail sentence of up to 35 years and a fine of a $1 million that he faced as a result of the heavy-handed prosecution.

Aaron was very involved in fighting against things like the Stop Online Piracy Act (SOPA), and was instrumental in the creation of web standards and protocols like RSS and Markdown in addition to his activist work.

In memory of Aaron, US lawmakers have joined together to proposed a series of amendments to the CFAA called, “Aaron’s Law.” These changes would tighten the Act and would ensure that no one else would face the kind of persecution that Aaron Swartz faced thanks to the CFAA.

Take action

We ask that you take a look at the Justice for Aaron website and get involved. That could mean contacting your elected representatives if you live in the US, or simply raising awareness by putting the badge on your website or Facebook profile this week. Join sites like BoingBoing, Reddit, Demand Progress, the Electronic Frontier Foundation (EFF) and Tucows in this effort.

If you want to learn more about Aaron Swartz, Aaron’s Law or the CFAA, you can visit some of the links below.

Domain Industry Veterans Team Up To Run .online

Directi, Tucows and Namecheap form a “team of rivals” in bid to manage the .online registry.

TORONTO, March 27, 2013 – As part of its New Generic Top Level Domain (gTLD) program, ICANN has accepted nearly 2,000 applications from prospective registries who would like to manage their own TLDs (letters to the right of the dot). Now, applicants for the same TLDs have begun to compete, negotiate, and, in some cases, join forces to ultimately produce one winning bid.

The first such alliance was revealed today, when domain industry veterans Directi, Tucows and Namecheap announced that they would work together to manage the .online registry.

Directi and Tucows are probably best known for their wholesale platforms and the large, global domain name reseller channels they manage. Namecheap, a top-ten retail registrar, is best known for its strong consumer brand and emphasis on customer service.

The three companies each bring significant capital to the table to launch and operate the .online registry. They bring a wealth of experience and capabilities, from registry management to wholesale distribution to retail service. Perhaps most importantly, they bring enormous global reach. Between their wholesale and retail operations, Directi, Tucows and Namecheap combined reach over 40 million small businesses and other hosting customers around the world.

“This partnership makes perfect sense for us and it makes perfect sense for .online registrants,” said Directi CEO & Founder, Bhavin Turakhia, Tucows CEO Elliot Noss and Namecheap CEO Richard Kirkendall at the exact same time, a powerful display of partnership and an impressive achievement considering the time zone differences. The CEOs continued, “Between the three of us and all our properties, we know we can deliver an outstanding .online experience to resellers and end users in every corner of the world.”

About Directi

With over a decade in the internet industry, Directi is a $350m+ group of businesses, providing various web products and services to millions of global users. Directi businesses include ResellerClub, LogicBoxes, BigRock, Skenzo, Media.net and Radix Registry. Over 1000 employee strong, Directi currently has 5 offices across 4 countries. Directi businesses rank amongst the fastest growing businesses worldwide in their corresponding industry segments. For more information, please visit http://directi.com.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

About Namecheap

Namecheap is a Los Angeles-based ICANN accredited domain registrar founded in 2000 by CEO Richard Kirkendall. With nearly 1 million satisfied clients and over 3 million domain names under management, Namecheap is one of the top ten domain registrars in the world. Find out more by visiting us at http://www.namecheap.com.

For further information:

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

 

Tucows Announces $10 Million Stock Buyback Program

TORONTO, March 1, 2013 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC) today announced that its Board of Directors has approved a stock buyback program (the “Share Repurchase”) to repurchase from time to time up to $10 million of its common stock in the open market through the facilities of the NYSE AMEX Stock Exchange (“NYSE AMEX”). The Share Repurchase will commence immediately and will terminate on February 28, 2014.

All shares purchased by Tucows under the stock buyback program will be retired and returned to treasury.

The timing and exact number of common shares purchased will be at Tucows’ discretion and will depend on available cash and market conditions. Tucows may suspend or discontinue the repurchases at any time, including in the event Tucows would be deemed to be making an acquisition of its own shares under Rule 13e-3 of the Securities Exchange Act of 1934, as amended. Subject to applicable securities laws and stock exchange rules, all purchases will occur through the open market and may be in large block purchases. Tucows does not intend to purchase its shares from its management team or other insiders.

The purchase will be funded from available working capital and existing credit facilities. As of February 28, 2013, Tucows had 40 million common shares outstanding.

During Tucows’ previous stock buyback program, which ended on November 14, 2012, Tucows repurchased and retired 2.4 million common shares. In addition, on January 4, 2013, Tucows concluded its previously announced modified “Dutch auction” tender offer in which it repurchased and retired 4.1 million common shares.

NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

This news release contains, in addition to historical information, forward-looking statements related to the proposed stock buyback program, including the timing, total number of shares to be purchased under the proposed stock buyback program. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks, which 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 included in this document are based on information available to Tucows as of the date of this document, and except to the extent Tucows may be required to update such information under any applicable securities laws, Tucows assumes no obligation to update such forward-looking statements.

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

For further information:

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

Tucows Reports Continuing Strong Financial Results for Fourth Quarter of 2012

- Company Achieves Eleventh Consecutive Quarter of Record Revenue and Generates Strong Cash Flow From Operations -

TORONTO, February 13, 2013 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names and other Internet services, today reported its financial results for the fourth quarter ended December 31, 2012. All figures are in U.S. dollars.

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






3 Months

Ended

Dec 31, 2012

(unaudited)
3 Months

Ended

Dec 31, 2011

(unaudited)
12 Months

Ended

Dec 31, 2012

(unaudited)
12 Months

Ended

Dec 31, 2011

(unaudited)
Net revenue 29,791 26,370 114,727 97,065
Income before provision for income taxes and change

in fair value of forward exchange contracts
789 1,745 5,745 3,986
Net income for the period 474 6,055 4,468 6,170
Net earnings per common share 0.01 0.11 0.10 0.12
Net cash provided by operating activities 2,022 2,683 6,343 5,885

Summary of Revenues and Cost of Revenues

(In Thousands of US Dollars)

Revenue Cost of Revenue





3 Months

Ended

Dec 31, 2012

(unaudited)
3 Months

Ended

Dec 31, 2011

(unaudited)
3 Months

Ended

Dec 31, 2012

(unaudited)
3 Months

Ended

Dec 31, 2011

(unaudited)
Wholesale
Domain Service 22,391 20,742 18,893 17,347
Value-Added Services 2,705 2,186 456 435
Total Wholesale 25,096 22,928 19,349 17,782
Retail 3,628 1,432 2,454 549
Portfolio 1,067 2,010 201 179
Network, other costs - 1,296 1,146
Network, depreciation and amortization costs - 187 177
Total revenue/cost of revenue 29,791 26,370 23,487 19,833

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.

“Our performance in the fourth quarter and for the year underscores the consistency and reliability in our business, as well as our ability to deliver growth,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “All facets of our operations continue to perform well, although our results for the quarter were dampened by the timing of Portfolio revenues and vendor marketing programs. Moreover, our ability to generate cash enabled us to continue to deliver on our stated objective to return capital to shareholders, repurchasing an additional 14.1 million shares, or 26.3% of shares outstanding, since the beginning of 2012. In addition, our launch of Ting was a great example of our ability to introduce new services that have the opportunity generate meaningful growth with little capital expenditure or impact on ongoing costs.”

“As we look ahead to 2013, our core businesses will continue to grow and Ting is on track to contribute to EBITDA in the coming years. Despite a modest upfront investment and very little incremental ongoing expenses, we already consider Ting to be a success. We continue to experience efficient customer acquisition costs and attractive gross margins. While we have kept our expectations modest, we’ve been pleasantly surprised by the reception and momentum Ting has experienced in the market.”

“We continue to benefit from the efficiency in our business and remain well positioned to continue to deliver consistent, reliable performance, generate growth and build value for our shareholders.”

Net revenue for the fourth quarter of 2012 increased 13% to a record $29.8 million from $26.4 million for the fourth quarter of 2011.

Net income and comprehensive income for the fourth quarter of 2012 was $0.5 million, or $0.01 per share, compared with $6.1 million, or $0.11 per share, for the fourth quarter of 2011, which included the recovery of $3.5 million in income taxes and the benefit of a gain on foreign exchange contracts of $0.8 million compared with a loss on foreign exchange contracts of $0.1 million in the fourth quarter of 2012. In addition, net income for the fourth quarter of 2012 was impacted by the timing of both vendor marketing programs and domain sales from inventory, which dampened the contribution from the Portfolio component of business.

Deferred revenue at the end of the fourth quarter of 2012 was $71.0 million, an increase of 3% from $69.2 million at the end of the fourth quarter of 2011 and a decrease of 3% from $73.3 million at the end of the third quarter of 2012.

Cash and cash equivalents at the end of the fourth quarter of 2012 were $6.4 million compared with $5.0 million at the end of the third quarter of 2012 and $6.4 million from the end of the fourth quarter of 2011. During the fourth quarter of 2012, the Company generated cash flow from operations of $2.0 million compared with $2.7 million for the same quarter of 2011. During the quarter, the Company used $0.3 million for principal repayments under its credit facility and invested $0.3 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.

As previously announced, subsequent to the end of the fourth quarter the Company completed the repurchase of 4.1 million of its shares at a purchase price of $1.50 per share for a total of $6.2 million under its modified “Dutch auction” tender announced on November 13, 2012. Since initiating its first share buyback program in February 2007, the Company has repurchased a total of 37.3 million shares through its buyback programs, representing 49% of the Company’s total shares outstanding at the end of December 2006.

Conference Call

Tucows management will host a conference call today, Wednesday, February 13, 2013 at 5:00 p.m. (ET) to discuss the Company’s fourth quarter 2012 results. Participants can access the conference call via the Internet at http://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 95427084 followed by the pound key. The telephone replay will be available until Wednesday, February 20, 2013 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 including statements regarding our expectations regarding our future financial results and, in particular, our expectations for Ting and its impact on our financial performance. 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, including the acceptance of Ting in the market. Information about other 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 is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

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

Tucows Fourth Quarter Investment Community Conference Call is Wednesday, February 13, 2013 AT 5:00 P.M. (ET)

TORONTO, February 5, 2013 – Tucows Inc. (TSX: TC, AMEX: TCX) plans to report its fourth quarter fiscal 2012 financial results via news release on Wednesday, February 13, 2013 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 http://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 95427084 followed by the pound key. The telephone replay will be available until Wednesday, February 20, 2013 at midnight. To access the archived conference call as an MP3 via the Internet, go to http://tucowsinc.com/investors.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Contact:

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

Tucows Inc. Announces Final Results of Dutch Tender Offer

TORONTO, Jan. 10, 2013 – Tucows Inc. (NYSE AMEX:TCX), (TSX:TC), a global provider of domain names, email and other Internet services, announced today the final results of its modified “Dutch auction” tender offer, which expired at 5:00 p.m., New York City time, on January 4, 2013. Tucows will purchase 4,114,121 shares of its Common Stock at a purchase price of $1.50 per share, for a total cost of $6,171,182, excluding fees and expenses related to the tender offer. Payment for shares accepted for purchase will be funded partly in cash and from two demand loan facilities Tucows currently has with the Bank of Montreal. The 4,114,121 shares accepted for purchase in the tender offer represent approximately 9.3% of Tucows’ currently issued and outstanding Common Stock.

Payment for shares accepted for purchase, and the return of all other shares tendered but not accepted for payment, will be made promptly by Registrar and Transfer Company, the depositary for the tender offer.

All shares purchased by Tucows in the tender offer will be cancelled. As a result of the completion of the tender offer and immediately following payment of the tendered shares, Tucows will have approximately 40,215,688 shares issued and outstanding.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

This news release contains, in addition to historical information, forward-looking statements related to the proposed tender offer, including the timing, total number of shares to be purchased under the proposed tender offer and the process for the proposed tender offer. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks, which 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 included in this document are based on information available to Tucows as of the date of this document, and except to the extent Tucows may be required to update such information under any applicable securities laws, Tucows assumes no obligation to update such forward-looking statements.

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Tucows Inc. Announces Preliminary Results of Dutch Tender Offer

TORONTO, Jan. 7, 2013 – Tucows Inc. (NYSE AMEX:TCX), (TSX:TC), a global provider of domain names, email and other Internet services, announced today the preliminary results of its modified “Dutch auction” tender offer, which expired at 5:00 p.m., New York City time, on January 4, 2013. Tucows expects to purchase up to 4,114,437 shares of its Common Stock at a purchase price of $1.50 per share, for a total of $6,173,155. Tucows expects to fund the share purchases in the tender offer through two of its demand loan facilities with the Bank of Montreal.

The price per share is preliminary and subject to verification by Registrar and Transfer Company, the depositary for the tender offer. The actual price per share will be announced promptly following completion of the verification process. After the determination of the actual price per share, the depositary will issue payment for the shares accepted under the tender offer and return all shares not accepted.

Tucows commenced the tender offer on November 29, 2012 when it offered to purchase up to 6,500,000 shares of its Common Stock at a price within the range of $1.35 to $1.50 per share, net to the seller in cash, without interest.

All shares purchased by Tucows in the tender offer will be cancelled. Based on the preliminary results, as a result of the completion of the tender offer Tucows expects to have approximately 40,207,000 shares issued and outstanding as of the time immediately following payment for the tendered shares.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

This news release contains, in addition to historical information, forward-looking statements related to the proposed tender offer, including the timing, total number of shares to be purchased under the proposed tender offer and the process for the proposed tender offer. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks, which 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 included in this document are based on information available to Tucows as of the date of this document, and except to the extent Tucows may be required to update such information under any applicable securities laws, Tucows assumes no obligation to update such forward-looking statements.

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

Verisign and the US Department of Commerce – Our Take

This morning, it was announced that Verisign and the US Department of Commerce had come to an agreement that allows Verisign to continue to operate the .com domain for another six years.

What was missing from that contract was the hot topic of conversation this morning – Verisign no longer has the right to four price increases of 7% over the term of the agreement. In other words, .com domains will likely remain prices at $7.85 until November, 2018 when the new agreement comes up for renewal again.

Verisign does have the right to increase prices if they can prove “extraordinary” expense resulting from and attack or threat of attack on the security or stability of the DNS. Any price increase would require Verisign to prove that the increase served the public interest before the Department of Commerce would approve.

Verisign could also seek a price increase if it could prove that market conditions no longer warranted the new restrictions that are put in place with this agreement. Again, that would require Department of Commerce approval.

Tucows’ Take

Elliot Noss, Tucows President and CEO, says that the new agreement between the Department of Commerce and Verisign “rights a wrong in the last contract.”

Tucows has been very outspoken about .com pricing, and we were clear at the time of the last renewal that we did not believe Verisign should have been given the right to price increases.

It’s good news for registrants and the Internet as a whole.

Elliot also suggests that the new contract could even turn out to be good for Verisign going forward. The previous contract provided them with an opportunity to raise prices. As a public company with a fiduciary responsibility to maximize shareholder value, Elliot notes that investors, who often think in the short term, would put immense pressure on Verisign to exercise those price increases.

He goes on to suggest that having the option to raise prices four times in the next six years may have turned into a competitive disadvantage for Verisign given the new gTLDs coming online within the next 12 to 18 months.

By not having price increases available to them as a way to grow revenues, Verisign is will be driven to more efficiency and innovation. Certainly, the conference call Verisign hosted this morning featured a lot of talk of innovation, patents, and the addition of new value-added and revenue generating services like Distributed Denial of Service attack protection.

One thing is for sure, and perhaps this is the most important part of the contract extension announcement: Verisign continuing to be the operator of the .com extension for the next six years is great news for everyone. Verisign has proven itself to be an exceptionally good operator of the root. From a technology and service perspective, .com is clearly in good hands.

You can read the US Department of Commerce statement here.

Tucows Announces Commencement of Dutch Auction Tender Offer to Repurchase up to 6.5 Million Common Shares

TORONTO, Nov. 29, 2012 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC) a global provider of domain names, email and other Internet services, announced today that it is commencing its “modified Dutch auction” (the “Tender Offer”) to repurchase up to 6,500,000 shares of its common stock, representing approximately 14.7% of Tucows’ outstanding shares, as previously announced on November 13, 2012 and November 21, 2012. The closing price of Tucows common stock on the NYSE Amex on November 28, 2012 was $1.41.

Under the Tender Offer, shareholders will have the opportunity to tender some or all of their shares at a price within the range of $1.35 to $1.50 per share. Based on the number of shares tendered and the prices specified by the tendering shareholders, Tucows will determine the lowest per share price within the range that will enable it to buy 6,500,000 shares, or such lesser number of shares that are properly tendered. If shareholders of more than 6,500,000 shares properly tender their shares at or below the determined price per share, Tucows will purchase shares tendered by such shareholders, at the determined price per share, on a pro rata basis. Additionally, if more than 6,500,000 shares are properly tendered, the number of shares to be repurchased by Tucows pursuant to the tender offer may, at the discretion of Tucows, be increased by up to 2% of Tucows’ outstanding shares, or approximately 885,000 shares, without amending or extending the tender offer. Tucows’ management team and Lacuna, LLC, the Company’s largest shareholder, have agreed not to tender any shares in the tender offer.

Shareholders whose shares are purchased in the offer will be paid the determined purchase price per share net in cash, without interest, after the expiration of the offer period at 5:00 P.M., New York City Time, on Friday, January 4, 2013.

Tucows expects to fund the share purchases in the Tender Offer through new borrowings under an amended and extended version of its existing credit facilities. The Tender Offer will not be conditioned upon any minimum number of shares being tendered, but will be subject to the completion of the new borrowings and related loan documentation and other customary conditions that are described in the Tender Offer documents. The Tender Offer documents, which are being distributed to shareholders, also contain tendering instructions and a complete explanation of the Tender Offer’s terms and conditions. All shares purchased by Tucows in the tender offer will be cancelled.

The information agent for the Tender Offer will be Registrar and Transfer Company. Neither Tucows, its board of directors or the information agent is or will be making any recommendation to shareholders as to whether to tender or refrain from tendering their shares into the Tender Offer. Shareholders will be able to obtain copies of the offer to purchase, related materials filed by the Company as part of the statement on Schedule TO and other documents filed with the Securities and Exchange Commission through the SEC’s internet address at www.sec.gov without charge when these documents become available. Shareholders and investors may also obtain a copy of these documents, as well as any other documents the Company has filed with the SEC, without charge, from the Company or at the Company’s website: www.tucowsinc.com. Shareholders are urged to carefully read these materials, when available, prior to making any decision with respect to the offer. Shareholders and investors who have questions or need assistance may call Registrar and Transfer Company, the information agent for the tender offer, by directing such request to: Registrar and Transfer Company, 10 Commerce Drive Cranford, NJ 07016, telephone (800) 866-1340.

This release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of the Company’s common stock. The solicitation and offer to buy the Company’s common stock will only be made pursuant to the offer to purchase and related materials that the Company is sending to its shareholders. Shareholders should read those materials carefully because they will contain important information, including the various terms and conditions of the Tender Offer.

About Tucows

Tucows is a global Internet services company. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a reseller network of over 13,000 web hosts and ISPs. Hover (http://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 (http://yummynames.com) owns and operates premium domain names that generate revenue through advertising or resale. More information can be found on Tucows’ corporate website (http://tucows.com).

This news release contains, in addition to historical information, forward-looking statements related to the proposed tender offer, including the timing, total number of shares to be purchased under the proposed tender offer and the process for the proposed tender offer. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks, which 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 included in this document are based on information available to Tucows as of the date of this document, and except to the extent Tucows may be required to update such information under any applicable securities laws, Tucows assumes no obligation to update such forward-looking statements.

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.

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