News

Tucows and Namecheap to Remain as Marketing Partners

TORONTO, March 2, 2015 – Radix, one of the leading registries in the new gTLD space, has reached an agreement with auction partners Tucows (Nasdaq:TCX) (TSX:TC) and Namecheap to assume full ownership and operation of the .online TLD.

Radix has already launched some of the most recognizable new gTLDs with .website, .host, .press and .space. With .online, they now own the first truly generic, truly global, viable alternative to .com.

“Online” is the most commonly used word to end domain names, with over 550K .com domain names today ending with the word “online.” In addition, the .online extension has been amongst the top most pre-registered names across registrars.

Tucows, the leading wholesale registrar, and Namecheap, one of the most popular retail registration services, will both continue to work closely with Radix as marketing and distribution partners. The three companies represent a formidable supply chain from registry to registrar to retailer, with the potential to deliver .online to tens of millions of small businesses around the world.

But Radix emerged as the party with the greatest focus on operating a registry.

“We began this partnership and this bid process way back in Spring 2013,” explained Tucows CEO Elliot Noss. “Since then, we have discovered a winning strategy that combines great execution on our domains business and investment for growth on our Ting telecom business. Namecheap, likewise, has increased its singular focus on delivering an outstanding retail domain name experience.”

Noss continued, “Meanwhile, Radix has emerged as one of the most ambitious and capable domain name registries in the world. We still believe that .online has huge potential as a fresh alternative to .com. We are confident that Radix is the right company to run it and both Tucows and Namecheap are thrilled to play our rightful part in its success.”

Radix CEO Bhavin Turakhia concluded simply, “The initial response to new gTLDs has been fantastic and .online has far greater potential than anything we or anyone else has launched to date. We are delighted to call it ours.”

The terms of the final agreement between the three parties is not disclosed.

About Radix

Radix (Radix FZC), is an active participant in ICANN’s process to expand the internet naming system and introduce new, meaningful internet addresses. Radix is Asia’s largest new gTLD applicant under this program with applications to operate 20 suffixes including web, .music, .blog, and .shop. The company has invested over $30 Million in securing licenses to operate these new extensions and expects to play a large role in the global diversification of the internet namespace.

About Tucows

Tucows is a provider of network access, domain name and other Internet services. OpenSRS (http://opensrs.com) manages over fourteen million domain names and millions of value-added services through a global 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. 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 over four million domains under management and two million direct customers, Namecheap is one of the top domain registrars and web hosting providers in the world. For more information, visit, https://www.namecheap.com.

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

TORONTO, February 11, 2015 – 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 February 16, 2015 and will terminate on or before February 15, 2016.

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 10, 2015, Tucows had 11,186,028 common shares outstanding.

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

About Tucows

Tucows is a provider of network access, domain name and other Internet services. Ting (https://ting.com) is a mobile phone service provider dedicated to bringing clarity and control to US mobile phone users. OpenSRS (http://opensrs.com) manages over 13 million domain names and millions of value-added services through a global 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. 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

Quarter Highlighted by Net Earnings of $0.16 Per Share, Continued Momentum at Ting Mobile

TORONTO, February 11, 2015 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today reported its financial results for the fourth quarter ended December 31, 2014. All figures are in U.S. dollars.

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

3 Months Ended Dec. 31, 2014 (unaudited) 3 Months Ended Dec. 31, 2013 (unaudited) 9 Months Ended Dec. 31, 2014 (unaudited) 9 Months Ended Dec. 31, 2013 (unaudited)
Net revenue 38,802 33,139 147,667 129,935
Income before provision for income taxes and change in fair value of forward exchange contracts 3,277 1,532 10,739 6,476
Net income 1,859 923 6,374 4,180
Net earnings per common share¹ $0.16 $0.08 $0.57 $0.40
Net cash provided by (used in) operating activities 2,768 1,651 8,878 8,703

¹ Net earnings per common share reflects the 1-for-4 reverse split of common shares that became effective December 31, 2013.

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

Revenue Cost of Revenue
3 Months Ended Sept. 30, 2014 (unaudited) 3 Months Ended Sept. 30, 2013 (unaudited) 3 Months Ended Sept. 30, 2014 (unaudited) 3 Months Ended Sept. 30, 2013 (unaudited)
Domain Services
Wholesale
OpenSRS Domain Service 21,609 21,595 18,079 17,949
Value-Added Services 2,305 2,417 531 548
Total Wholesale 23,914 24,012 18,610 18,497
Retail 2,805 2,298 1,216 991
Portfolio¹ 917 1,100 241 143
Total Domain Services 27,636 27,410 20,067 19,631
Network Access Services (Ting) 11,166 5,729 6,755 3,975
 
Network, other costs - - 1,127 1,120
Network, depreciation and amortization costs - - 171 175
Total revenue/cost of revenue 38,802 33,139 28,120 24,901

“The fourth quarter was a solid finish to a strong year for Tucows,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “The continuing growth in contribution from Ting Mobile, combined with steady performance of our Domains business, enabled us to deliver net earnings per share of $0.16 for the fourth quarter, bringing EPS for the year to a record $0.57, an increase of 43% over 2013. Importantly, we continue to realize the benefit from the operating leverage in our business as consolidated gross margin for the quarter grew to 26% from 23%, excluding the Portfolio Group, for the same period last year.”

“Ting Mobile’s momentum continued in the fourth quarter, adding more than 11,000 accounts and more than 17,000 devices to end the year with approximately 94,000 active accounts and 147,000 active devices. Over the course of 2014, we essentially doubled the size of our customer base. We look forward to continued growth in Ting Mobile over the course of 2015 as we begin to leverage Ting’s world-leading customer experience for significant opportunity in the fixed access market.”

Net revenue for the fourth quarter of 2014 increased 17% to $38.8 million from $33.1 million for the fourth quarter of 2013.

Net income for the fourth quarter of 2014 was $1.9 million, or $0.16 per share, compared with $0.9 million, or $0.08 per share, for the fourth quarter of 2013.

Cash and cash equivalents at the end of the fourth quarter of 2014 were $8.3 million, compared with $13.6 million at the end of the third quarter of 2014 and $12.4 million at the end of the fourth quarter of 2013. During the fourth quarter of 2014, Tucows generated cash flow in operating activities of $2.8 million. The Company also invested $8.2 million in the previously announced auction cost for the .online gTLD and registry seed capital for the joint venture, as well as in escrow accounts established to fund its previously announced acquisition of 70% ownership of an independent Internet service provider in Charlottesville, Virginia doing business primarily as Blue Ridge InternetWorks (BRI).

Conference Call

Tucows management will host a conference call today, Wednesday, February 11, 2014 at 5:00 p.m. (ET) to discuss the Company’s fourth 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://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 75735101 followed by the pound key. The telephone replay will be available until Wednesday, February 18, 2015 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 provider of network access, domain name and other Internet services. Ting (https://ting.com) is a mobile phone service provider dedicated to bringing clarity and control to US mobile phone users. OpenSRS (http://opensrs.com) manages over 13 million domain names and millions of value-added services through a global 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. 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

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