News / News Releases

Tucows Second Quarter Investment Community Conference Call is Tuesday, August 12, 2014 AT 5:00 P.M. (ET)

TORONTO, July 29, 2014 – Tucows Inc. (TSX: TC, NASDAQ: TCX) plans to report its second quarter fiscal 2014 financial results via news release on Tuesday, August 12, 2014 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 join the call by dialing 1-888-231-8191 or 647-427-7450. Participants can also 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 74220945 followed by the pound key. The telephone replay will be available until Tuesday, August 19, 2014 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 (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 2014

— Ting Continues Strong Momentum in Customer and Device Additions/Domains Business Delivers Another Quarter of Solid Performance —

TORONTO, May 14, 2014 – Tucows Inc. (NASDAQ: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, 2014. All figures are in U.S. dollars.

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

3 Months Ended Mar. 31, 2014 (unaudited) 3 Months Ended Mar. 31, 2013 (unaudited)
Net revenue 34,402 29,985
Income before provision for income taxes and change in fair value of forward exchange contracts 1,280 431
Net income 477 77
Net earnings per common share¹ $0.04 $0.01
Net cash provided by operating activities (39)² 416

¹ Net earnings per common share reflects the 1-for-4 reverse split of common shares that became effective December 31, 2013.
² Net cash used in operating activities includes an excess tax benefit from share-based compensation expenses of $1.0 million in Q1 2014. Net cash provided by financing activities in Q1 2014 reflects the excess tax benefit as a corresponding in-flow.

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

Revenue Cost of Revenue
3 Months Ended Mar. 31, 2014 (unaudited) 3 Months Ended Mar. 31, 2013 (unaudited) 3 Months Ended Mar. 31, 2014 (unaudited) 3 Months Ended Mar. 31, 2013 (unaudited)
Domain Services
Wholesale
OpenSRS Domain Service 21,649 21,896 18,235 18,454
Value-Added Services 2,604 2,689 541 562
Total Wholesale 24,253 24,585 18,776 19,016
Retail 2,384 1,918 1,015 751
Portfolio 1,053 1,134 244 201
Total Domain Services 27,690 27,637 20,035 19,968
Network Access Services (Ting) 6,712 2,348 4,281 2,110
 
Network, other costs - - 1,144 1,254
Network, depreciation and amortization costs - - 183 173
Total revenue/cost of revenue 34,402 29,985 25,643 23,505

NOTE: To better reflect the manner in which these revenue streams are generated and assessed by management, beginning in the first quarter of 2014, Tucows has reclassified its revenue streams into Domain Services and Network Access Services. Domain Services includes Wholesale OpenSRS (Domain Service and Value Added Services), Retail (Hover) and Portfolio. Network Access Services includes Ting.

Our performance in the first quarter once again demonstrates the reliability and consistency of the business, alongside our ability to generate growth,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Ting delivered another record quarter, adding more than 13,000 accounts and 20,000 devices to end the quarter at 61,000 accounts and 94,000 devices, and subsequent to quarter end, we achieved another growth milestone, surpassing 100,000 devices. After little more than two years since launch, Ting is on track to match and exceed the size of our Wholesale domains business in terms of gross margin contribution later this year.”

“Our Domain Services business continues to perform well,” added Mr. Noss. “Our Wholesale channel and our Portfolio services business both had solid quarters, while our Retail channel, Hover, delivered yet another quarter of year-over-year growth in excess of 20%.”

Net revenue for the first quarter of 2014 increased 15% to $34.4 million from $30.0 million for the first quarter of 2013.

Net income for the first quarter of 2014 was $0.5 million, or $0.04 per share, compared with $0.08 million, or $0.01 per share, for the first quarter of 2013. Net income for the first quarter of 2014 included a loss on foreign exchange contracts of $0.6 million compared with a loss on foreign exchange contracts of $0.2 million in the first quarter of 2013. Net income for the first quarter of 2014 also included the incremental investment of approximately $1.2 million for the acquisition and support of Ting customers as compared to the first quarter of 2013.

Deferred revenue at the end of the first quarter of 2014 was $72.8 million, a marginal increase from $72.4 million at the end of the first quarter of 2013 and an increase of 4% from $70.0 million at the end of the fourth quarter of 2013.

Cash and cash equivalents at the end of the first quarter of 2014 were $13.5 million compared with $12.4 million at the end of the fourth quarter of 2013 and $4.3 million at the end of the first quarter of 2013. The increase in cash and cash equivalents of $1.1 million when compared to the fourth quarter of 2013 primarily resulted from the $1.0 million in incremental tax benefit related to share-based compensation and the $0.9 million in proceeds we received from the issuance of our common stock through the exercise of stock options during the first quarter of 2014. This was partially offset by the use of $0.6 million for principal repayments under the Company’s credit facility and investment of $0.1 million in equipment purchases.

Conference Call

Tucows management will host a conference call today, Wednesday, May 14, 2014 at 5:00 p.m. (ET) to discuss the Company’s first quarter 2014 results. Participants can access the conference call by dialing 1-888-231-8191 or 647-427-7450 or 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 30814878 followed by the pound key. The telephone replay will be available until Wednesday, May 21, 2014 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 (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 14, 2014 AT 5:00 P.M. (ET)

TORONTO, May 1, 2014 – Tucows Inc. (TSX: TC, NASDAQ: TCX) plans to report its first quarter fiscal 2014 financial results via news release on Wednesday, May 14, 2014 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 join the call by dialing 1-888-231-8191 or 647-427-7450. Participants can also 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 30814878 followed by the pound key. The telephone replay will be available until Wednesday, May 21, 2014 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 (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 Announces $20 Million Stock Buyback Program

TORONTO, March 4, 2014 – Tucows Inc. (NASDAQ:TCX, TSX:TC) today announced that its Board of Directors has approved a stock buyback program to repurchase from time to time up to $20 million of its common stock in the open market. Purchases will be made exclusively through the facilities of the NASDAQ Capital Market. The stock buyback program will commence immediately and will terminate on March 3, 2015.

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 March 4, 2014, Tucows had 11,068,759 common shares outstanding.

During Tucows’ previous stock buyback program, which ended on February 28, 2014, Tucows repurchased and retired 35,769 common shares taking into account the one-for-four reverse stock split effective as of December 30, 2013.

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 (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 and, 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.

Contact:

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

Tucows Reports Financial Results for the Fourth Quarter of 2013

– Ting Continues Strong Momentum in Customer Growth –

TORONTO, February 12, 2014 – Tucows Inc. (NASDAQ: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, 2013. All figures are in U.S. dollars.

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

3 Months Ended Dec. 31, 2013 (unaudited) 3 Months Ended Dec. 31, 2012 (unaudited) 12 Months Ended Dec. 31, 2013 (unaudited) 12 Months Ended Dec. 31, 2012 (unaudited)
Net revenue 33,139 29,791 129,935 114,727
Income before provision for income taxes and change in fair value of forward exchange contracts 1,532 789 6,476 5,745
Net income 923 429 4,180 4,424
Net earnings per common share¹ $0.08 $0.04 $0.40 $0.39
Net cash provided by operating activities 1,651 2,022 8,703 6,343

¹ Net earnings per common share reflects the 1-for-4 reverse split of common shares that became effective December 31, 2013. As a result of the reverse split, 10,900,842 shares and 11,064,045 shares were used in computing net earnings per common share for the 3 months ended December 31, 2013 and 2012, respectively, and 10,468,250 shares and 11,458,216 shares were used in computing net earnings per common share for the 12 months ended December 31, 2013 and 2012, respectively.

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

Revenue Cost of Revenue
3 Months Ended Dec. 31, 2013 (unaudited) 3 Months Ended Dec. 31, 2012 (unaudited) 3 Months Ended Dec. 31, 2013 (unaudited) 3 Months Ended Dec. 31, 2012 (unaudited)
Wholesale
Domain Services 21,595 22,391 17,949 18,893
Value-Added Services 2,417 2,705 548 456
Total Wholesale 24,012 25,096 18,497 19,349
 
Retail 8,027 3,628 4,966 2,454
Portfolio ¹ 1,100 1,067 143 201
 
Network, other costs - - 1,120 1,296
Network, depreciation and amortization costs - - 175 187
Total revenue/cost of revenue 33,139 29,791 24,901 23,487

“Our financial results for the fourth quarter once again underscore not only the consistency and reliability in our business but also our continued ability to generate sustainable growth,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “In the domains component of our business, we continue to see solid performance from both our Wholesale and Portfolio services, while our retail channel, Hover, delivered another quarter of 20%-plus year-over-year top-line growth.”

“For the seventh straight quarter, Ting set new records for net adds, adding more than 12,000 accounts and 18,000 devices. We ended the year with over 48,000 accounts and 74,000 devices and, in January, surpassed the 50,000 accounts and 80,000 devices milestone. Ting continues to be on track to positively contribute to EBITDA for 2014, although our priority will continue to be aggressive investment in customer acquisition and customer satisfaction to ultimately drive even greater long-term value for shareholders.”

Net revenue for the fourth quarter of 2013 increased 11% to $33.1 million from $29.8 million for the fourth quarter of 2012.
Net income for the fourth quarter of 2013 was $0.9 million, or $0.08 per share (based on the number of shares post-reverse split), compared with $0.4 million, or $0.04 per share (based on the number of shares post-reverse split), for the fourth quarter of 2012. Net income for the fourth quarter of 2013 included a loss on foreign exchange contracts of $0.3 million compared with a loss on foreign exchange contracts of $0.1 million in the fourth quarter of 2012. Net income for the fourth quarter of 2013 also included the incremental investment of approximately $1.3 million for the acquisition and support of Ting customers as compared to the fourth quarter of 2012.

Deferred revenue at the end of the fourth quarter of 2013 was $70.0 million, a decrease of 1% from $71.0 million at the end of the fourth quarter of 2012 and a decrease of 3% from $72.0 million at the end of the third quarter of 2013.

Cash and cash equivalents at the end of the fourth quarter of 2013 were $12.4 million compared with $11.5 million at the end of the third quarter of 2013 and $6.4 million at the end of the fourth quarter of 2012. The increase in cash and cash equivalents of $0.9 million when compared to the third quarter of 2013 resulted from the generation of $1.7 million in cash flow from operations, which was 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, February 12, 2014 at 5:00 p.m. (ET) to discuss the Company’s fourth 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 46588159 followed by the pound key. The telephone replay will be available until Wednesday, February 19, 2014 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 (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

Ting slashes data prices

TORONTO, Feb. 3, 2014 – On the two year anniversary of its launch, shockingly likeable mobile phone service Ting, a division of Tucows Inc. (NASDAQ: TCX; TSX: TC), surprised its customers with a big drop in data pricing.

The new rates are on display at ting.com/rates and the changes are detailed at ting.com/blog.

Current customers do not need to move to a new plan. New customers do not need to come from any particular provider. There is no requirement to buy a new device or make any particular commitment. Ting is simply dropping their usage-based pricing for current and incoming customers alike.

The deepest cut was made to the unit pricing on the heaviest data usage. That went from 2.25¢ per megabyte to just 1.5¢, a significant benefit to small businesses, families and data-hungry individuals.

“After two years of fantastic growth, we are in a position to provide even greater cost savings to our customers,” explained Elliot Noss, CEO of Tucows. “We are thrilled to be able to do so. People love saving money and we love making customers happy.”

Ting has now surpassed 50,000 accounts and 80,000 devices on the service.

Ting customers will begin enjoying the new rates in their next billing period that begins after today. Others are strongly encouraged to calculate their potential savings at ting.com/calculator.

About Ting

Ting has no contracts, no overage penalties and no hidden fees. Minutes, megabytes and messages are each billed separately and customers only pay for the usage levels they actually hit. Businesses and families can have unlimited devices on one account and share usage for even greater savings. Active devices on an account cost just $6 per month. Ting offers a clear, usable website and smart, accessible people that are empowered to solve problems. Ting’s wireless network services are provided on the Nationwide Sprint Network.

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 (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).

For further information:

Jesse Simms
416-535-0123 x1209
press@ting.com
https://ting.com

Tucows Fourth Quarter Investment Community Conference Call is Wednesday, February 12, 2014 AT 5:00 P.M. (ET)

TORONTO, January 29, 2014 – Tucows Inc. (TSX: TC, NASDAQ: TCX) plans to report its fourth quarter fiscal 2013 financial results via news release on Wednesday, February 12, 2014 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 46588159 followed by the pound key. The telephone replay will be available until Wednesday, February 19, 2014 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 (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 Shares Begin Trading on NASDAQ on December 30 and Commence Trading on Reverse Split-Adjusted Basis on December 31

TORONTO, Dec. 27, 2013 – Tucows Inc. (NYSE MKT:TCX) (TSX:TC), a global provider of domain names and other Internet services, today announced that as previously disclosed in its news release on December 17, 2013, effective at the market open on December 30, 2013, its shares will begin trading on the NASDAQ capital market under the symbol “TCX”. In Canada, Tucows shares continue to be listed on the Toronto Stock Exchange, trading under the symbol “TC”.

In addition, effective at the market open on December 31, 2013, Tucows’ shares will begin trading on the reverse split-adjusted basis. As previously announced, Tucows’ board of directors approved a reverse stock split that consolidated every four Tucows common shares into one Tucows common share. As of the effective time of the reverse stock split Tucows’ common stock’s new CUSIP number will be 898697 20 6.

Shareholders who hold their shares in brokerage accounts or “street name” are not required to take any action to effect the exchange of their shares. Following the effective date of the reverse stock split, holders of share certificates should receive instructions from the Company’s transfer agent regarding the process for exchanging their shares. Holders of share certificates who do not receive such instructions within 10 days of the effective date of the reverse stock split should contact Tucows’ transfer agent, The Registrar and Transfer Company, by telephone at 1-800-368-5948 or by email at info@rtco.com.

Additional information regarding the reverse stock split can be found in the Company’s definitive proxy statements filed with the SEC on October 21, 2013 and the revised definitive proxy soliciting materials filed with the SEC on October 23, 2013.

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. Such statements include, without limitation, our expected initial trading date on NASDAQ and the timing of the reverse stock split. 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, without limitation, regulatory approvals. 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 Announces Transition of Stock Listing to NASDAQ and Implementation of 1-for-4 Reverse Split of Common Shares

- Shares to Commence Trading on NASDAQ on December 30 and on a Split-Adjusted Basis on December 31 -

TORONTO, December 17, 2013 – Tucows Inc. (NYSE MKT:TCX, TSX:TC), a global provider of domain names and other Internet services, today announced that it will transfer its U.S. stock exchange listing to the NASDAQ Capital Market from its current listing on the NYSE MKT. Tucows shares will continue to trade under the symbol “TCX”. The first day of trading on the NASDAQ is expected to be December 30, 2013. In Canada, Tucows will continue to be listed on the Toronto Stock Exchange and trade under the symbol “TC”.

The Company also announced that its board of directors has approved a reverse stock split of the Company’s common shares that will combine every four Tucows common shares into one Tucows common share. The Company’s common stock is expected to begin trading on a split-adjusted basis at the market open on December 31, 2013.

“The reverse stock split is consistent with Tucows’ growth as a publicly traded company,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “We believe it will expand our universe of potential investors and equity analysts as we continue to grow our business, and will also provide us with greater capital markets flexibility. In addition, we believe our shareholders should benefit through less volatility in our share price, lower transaction costs and greater liquidity. Ultimately, we believe the reverse stock split supports our overriding objective to generate long-term value to our shareholders as we continue to deliver consistency and reliability from our core revenue streams, while capitalizing on meaningful growth opportunities such as Ting.”

Mr. Noss added, “We are pleased to join NASDAQ’s roster of growth-oriented technology companies. NASDAQ provides investors with fast, high quality trade executions within the context of a cost-effective cost structure and high visibility for issuers.”

As a result of the reverse stock split, Tucows will have approximately 10.9 million common shares outstanding (reduced from approximately 43.6 million common shares outstanding), subject to rounding up of all fractional shares to the nearest whole share. No fractional shares will be issued as a result of the reverse stock split and the Company will round up to one whole share in the event a stockholder would be entitled to receive a fractional share. The number of options outstanding following the reverse stock split will be approximately 1.6 million (reduced from approximately 6.2 million).

As of the effective time of the reverse stock split, Tucows’ common stock’s new CUSIP number will be 898697 20 6. The reverse stock split will not change the par value of the common shares.

Tucows shareholders authorized the Company’s board of directors to implement the reverse stock split at a Special Meeting of shareholders held on December 4, 2013. The board of directors approved a 1-for-4 ratio for the reverse stock split after evaluating such items as the current and anticipated trading price and volume of the Company’s stock, the minimum threshold prices at which brokerages and institutional investors can invest in stocks, prevailing market conditions, and the liquidity of the Company’s stock.

Additional information regarding the reverse stock split can be found in the Company’s definitive proxy statements filed with the SEC on October 21, 2013 and the revised definitive proxy soliciting materials filed with the SEC on October 23, 2013.

Shareholders who hold their shares in brokerage accounts or “street name” are not required to take any action to effect the exchange of their shares. Following the effective date of the reverse stock split, holders of share certificates should receive instructions from the Company’s transfer agent regarding the process for exchanging their shares. Holders of share certificates who do not receive such instructions within 10 days of the effective date of the reverse stock split should contact Tucows’ transfer agent, The Registrar and Transfer Company, by telephone at 1-800-368-5948 or by email at info@rtco.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).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, our expectations for the listing of our shares on NASDAQ, the timing, effects and potential benefits of the reverse stock split, and 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, without limitation, regulatory approvals, market reaction to the reverse stock split and 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

Ting offers free coffee to 200 million cellphone users

TORONTO, Dec. 5, 2013 – Ting, a division of Tucows Inc. (NYSE MKT:TCX, TSX:TC), announced today that they will buy a hot, freshly brewed cup of coffee for each of the 200 million AT&T and Verizon wireless customers in the United States. To earn their cup of joe, AT&T and Verizon customers simply need to check out how much they would save by switching to the upstart mobile service provider.

For one week, through December 11, the overbilled and undercaffinated can visit ting.com/coffee to participate. Participants will be asked to enter their AT&T or Verizon wireless User ID and password to automatically calculate their potential savings over two years based on actual recent usage and bills. At the same time, they will be provided a unique promo code worth $5 at any Starbucks location.

The account credentials will be discarded immediately after the calculation is performed.

“I may have just spent my marketing budget for the next three years on free coffee,” admitted Michael Goldstein, Ting VP of Marketing. “But people are shocked when they see how much they would save by switching to Ting. I think it’s worth the investment to get those numbers in front of them.”

Ting also wants to make sure their current customers get in on the fun. So they are inviting all their customers to take a friend out for a coffee (or maybe a muffin) and tell them how great Ting is. Customers will then upload their receipt to get up to $10 credited to their Ting account.

About Ting

Ting has no contracts, no overage penalties and no hidden fees. Minutes, megabytes and messages are each billed separately and customers only pay for the usage levels they actually hit. Businesses and families can have unlimited devices on one account and share usage for even greater savings. Active devices on an account cost just $6 per month. Ting offers a clear, usable website and smart, accessible people that are empowered to solve problems. Ting’s wireless network services are provided on the Nationwide Sprint Network.

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 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

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