Tucows Inc. Announces Preliminary Results of Dutch Tender Offer
TORONTO, Oct. 20 – 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 October 19, 2010. Tucows expects to purchase 3,885,851 shares of its Common Stock at a purchase price of $0.70 per share, for a total of $2,720,096. The 3,885,851 shares expected to be purchased are comprised of the 2,900,000 shares Tucows offered to purchase and 985,851 shares to be purchased pursuant to Tucows right to purchase up to an additional 2% of the shares outstanding immediately prior to the commencement of the tender offer. Tucows intends to fund the repurchase of all 3,885,851 shares from available cash.
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Tucows Announces Commencement of Dutch Auction Tender Offer to Repurchase up to 2.9 Million Common Shares
TORONTO, Sept. 17 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC) a global provider of domain names, email and other Internet services, announced today that it is commencing a modified “Dutch auction” tender offer to repurchase up to 2,900,000 shares of its common stock, representing approximately 5.1% of Tucows’ outstanding shares. The closing price of Tucows common stock on the NYSE Amex on September 16, 2010 was $0.67.
Under the tender offer, shareholders will have the opportunity to tender some or all of their shares at a price within the range of $0.61 to $0.70 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 2,900,000 shares, or such lesser number of shares that are properly tendered. If shareholders of more than 2,900,000 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 2,900,000 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 1,147,000 shares, without amending or extending 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. The offer is not contingent upon any minimum number of shares being tendered. The offer is subject to a number of other terms and conditions specified in the offer to purchase that is being distributed to shareholders. The offer will expire at 5:00 P.M., New York City Time, on Tuesday, October 19, 2010.
The information agent for the offer is StockTrans, Inc. None of Tucows, its board of directors or the information agent is making any recommendation to stockholders as to whether to tender or refrain from tendering their shares into the tender offer. Shareholders must decide how many shares they will tender, if any, and the price within the stated range at which they will offer their shares for purchase by Tucows. Tucows’ board of directors and its executive officers do not intend to participate in this tender offer.
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of Tucows’ common stock. The offer is being made solely by the offer to purchase and the related letter of transmittal. Stockholders and investors are urged to read Tucows’ tender offer statement on Schedule TO filed with the Securities and Exchange Commission in connection with the tender offer, which includes exhibits, the offer to purchase and the related letter of transmittal, as well as any amendments or supplements to the statement when they become available, because they contain important information. Each of these documents has been or will be filed with the Securities and Exchange Commission, and investors may obtain them for free from the Securities and Exchange Commission at its website (www.sec.gov) or from StockTrans, Inc., the information agent for the tender offer, by directing such request to: StockTrans, Inc., Attn: Re-Organization Dept., 44 West Lancaster Avenue, Ardmore, PA 19003, telephone (800) 733-1121.
About Tucows
Tucows is a global Internet services company. OpenSRS manages over ten million domain names and millions of email boxes through a reseller network of over 10,000 web hosts and ISPs. Hover is the easiest way for individuals and small businesses to manage their domain names and email addresses. YummyNames owns premium domain names that generate revenue through advertising or resale. Butterscotch.com is an online video network building on the foundation of Tucows.com. More information can be found at http://tucowsinc.com
This news release contains, in addition to historical information, forward-looking statements related to the proposed tender offer, including the timing, purchase price per share in the tender offer, 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: Lawrence Chamberlain, The Equicom Group for Tucows Inc., (416) 815-0700 ext. 257, lchamberlain@equicomgroup.com
Tucows Announces Intention to Commence a Dutch Auction Tender Offer to Repurchase up to 2.9 Million Common Shares
TORONTO, Sept. 9 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC) a global provider of domain names, email and other Internet services, announced today that it intends to commence a modified “Dutch auction” tender offer to repurchase up to 2,900,000 shares of common stock, representing approximately 5.1% of Tucows’ outstanding shares. The tender offer is expected to commence on Friday, September 17, 2010 and to expire, unless extended, at 5:00 P.M., New York City Time, on Tuesday, October 19, 2010. Tucows also announced that it has terminated its normal course issuer bid commenced in February 2010 pursuant to which Tucows has repurchased 3,409,300 shares of common stock.
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Tucows Inc. reports financial results for second quarter 2010
TORONTO, Aug. 11 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names, email and other Internet services, today reported its financial results for the second quarter ended June 30, 2010. All figures are in U.S. dollars.
Summary Financial Results
(Numbers in Thousands of US Dollars, Except Per Share Data)
-------------------------------------------------------------------------
3 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended
June 30, 2010 June 30, 2009 June 30, 2010 June 30, 2009
(unaudited) (unaudited) (unaudited) (unaudited)
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Net revenue 20,847 20,022 41,292 40,114
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Net (loss)
income for
the period (772) 4,379 (203) 5,407
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Net (loss)
earnings per
common share (0.01) 0.06 (0.00) 0.08
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Net cash
provided by
operating
activities 1,173 2,591 2,552 3,504
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Summary of Revenue and Cost of Revenue before Network Costs
(Numbers in Thousands of US Dollars)
-------------------------------------------------------------------------
Revenue Cost of Revenue
-------------------------------------------------------------------------
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
June 30, 2010 June 30, 2009 June 30, 2010 June 30, 2009
(unaudited) (unaudited) (unaudited) (unaudited)
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OpenSRS:
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Domain
Services 15,749 14,738 13,090 11,944
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Email Services 581 874 117 153
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Other Services 1,085 1,092 400 411
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Total OpenSRS
Services 17,415 16,704 13,607 12,508
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YummyNames 1,632 1,455 254 251
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Hover 1,111 1,259 350 475
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Butterscotch 689 604 25 1
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Total 20,847 20,022 14,236 13,235
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“Our second quarter results continue to demonstrate the consistency of our business,” said Elliot Noss, President and CEO of Tucows. “Revenue from our core revenue drivers, domain registrations through OpenSRS and domain sales through YummyNames, was up on a year-over-year basis. Meanwhile, two of our growth opportunities, Hover and Butterscotch, continued to trend favorably across key metrics. The reliable performance of our core offerings allowed us to invest in our emerging units, positioning us for solid performance in the future while supporting our goal of returning capital to shareholders.”
Net revenue for the second quarter of 2010 increased 4.1% to $20.8 million from $20.0 million for the second quarter of 2009.
Net loss for the second quarter of 2010 was $0.8 million, or $0.01 per share, compared with net income of $4.4 million, or $0.06 per share, for the second quarter of 2009. Net loss and net loss from operations for the second quarter of 2010 were negatively impacted by a mark to market loss on foreign exchange of $1.9 million. Net income and net income from operations for the second quarter of 2009 were positively impacted by a mark to market gain on foreign exchange of $1.9 million. Additionally, net income for the second quarter of 2009 included other income of $2.0 million related to the sale of the Company’s equity stake in Afilias and $0.6 million related to patents that the Company assigned to a third party.
Deferred revenue at the end of the second quarter of fiscal 2010 was $60.0 million, an increase of 5.5% from $56.9 million at the end of the second quarter of fiscal 2009 and 0.9% from $59.5 million in the first quarter of 2010.
Cash and cash equivalents at the end of the second quarter of 2010 were $4.1 million compared with $7.4 million at the end of the second quarter of 2009 and $5.2 million at the end of first quarter of 2010. The decrease in cash compared with the first quarter of 2010 is primarily the result of the use of $1.7 million for the repurchase of common stock under the Company’s current open market share repurchase program that was initiated in February 2010, as well as the repayment of $0.5 million of the Company’s bank loan. This use of funds was partially offset by cash flow from operating activities for the second quarter of 2010 of $1.2 million. Cash flow from operating activities, before changes in non-cash operating working capital, for the second quarter of 2010 was $2.0 million, which was partially offset by the use of $0.8 million for changes in non-cash operating working capital.
During the second quarter of 2010, the Company repurchased an additional 2,453,300 common shares under its open market stock repurchase plan, which commenced in February 2010. During the first half of 2010, the Company repurchased an aggregate of 9,750,770 common shares (including shares purchased in its modified Dutch auction tender offer earlier this year), representing 14.5% of the Company’s outstanding common shares at the end of 2009. Since January 2009, the Company has repurchased a total of 15,825,006 shares representing 21.7% of the Company’s total shares outstanding at the end of 2008.
Conference Call
Tucows management will host a conference call today, Wednesday, August 11, 2010, at 5:00 p.m. (ET) to discuss the second quarter fiscal 2010 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 1-800-642-1687 and enter the pass code 90444604 followed by the pound key. The telephone replay will be available until Wednesday, August 18, 2010 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 manages over ten million domain names and millions of email boxes through a reseller network of over 10,000 web hosts and ISPs. Hover is the easiest way for individuals and small businesses to manage their domain names and email addresses. YummyNames owns premium domain names that generate revenue through advertising or resale. Butterscotch.com is an online video network building on the foundation of Tucows.com. More information can be found at http://tucowsinc.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.
Tucows second quarter investment community conference call is Wednesday, August 11, 2010 at 5:00 p.m. (ET)
TORONTO, July 30 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names, email and other Internet services, plans to report its second quarter fiscal 2010 financial results via news release on Wednesday, August 11, 2010 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.
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Tucows Inc. reports financial results for first quarter 2010
TORONTO, May 12 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC), a global provider of domain names, email and other Internet services, today reported its financial results for the first quarter ended March 31, 2010. All figures are in U.S. dollars.
Summary Financial Results
(Numbers in Thousands of US Dollars, Except Per Share Data)
3 Months Ended 3 Months Ended
Mar. 31, Mar. 31,
2010 2009
(unaudited) (unaudited)
Net Revenue 20,445 20,091
Net Income (Loss) 569 1,028
Net Income (Loss)/Share 0.01 0.01
Cash Flow from Operations 1,379 913
Summary of Revenue and Cost of Revenue before Network Costs
(Numbers in Thousands of US Dollars)
Revenue Cost of Revenue
3 Months 3 Months 3 Months 3 Months
Ended Ended Ended Ended
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
OpenSRS:
Domain Services 15,403 14,202 12,616 11,355
Email Services 638 1,122 107 180
Other Services 1,094 1,094 387 389
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Total OpenSRS Services 17,135 16,418 13,110 11,924
YummyNames 1,711 1,865 203 185
Hover 1,130 1,301 400 513
Butterscotch 469 507 19 7
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Total 20,445 20,091 13,732 12,629
“Our results for the first quarter of fiscal 2010 underscore the consistency in our business, anchored by the OpenSRS Domain Service, which grew 9% year-over-year in both transactions and revenue,” said Elliot Noss, President and CEO of Tucows. “We are experiencing growth both in the number of new OpenSRS customers as well as the speed at which these customers roll our service out to their customers. Our ability to consistently and reliably generate cash flow from operations continues to support our ability to return capital to our shareholders. Since implementing our open market share purchase program in February 2010, we have repurchased an additional 956,000 shares, and since the beginning of the year we have repurchased a total of 7.3 million shares, or 11% of our total shares outstanding as of the end of 2009.”
Net revenue for the first quarter of 2010 increased 1.8% to $20.4 million from $20.1 million for the first quarter of 2009.
Net income for the first quarter of 2010 was $0.6 million, or $0.01 per share, compared with $1.0 million, or $0.01 per share, for the first quarter of 2009. Net income for the first quarter of 2010 benefitted from a pre-tax gain on foreign exchange of $0.7 million (inclusive of a mark-to-market gain of $0.1 million) compared to a pre-tax loss on foreign exchange of $0.7 million (inclusive of a mark-to-market gain of $0.1 million) for the first quarter of 2009.
Deferred revenue at the end of the first quarter of fiscal 2010 was $59.5 million, an increase of 5.1% from $56.7 million at the end of the first quarter of fiscal 2009 and an increase of 5.7% from $56.3 million at the end of the fourth quarter of fiscal 2009.
Cash and cash equivalents at the end of the first quarter of fiscal 2010 were $5.2 million compared with $4.0 million at the end of the first quarter of fiscal 2009 and $9.6 million at the end of the fourth quarter of fiscal 2009. The decrease in cash compared with the fourth quarter of 2009 is primarily the result of the use of $5.2 million for the repurchase of common stock under the Company’s modified “Dutch auction” tender offer, which concluded in January 2010 and the current open market share repurchase program that was initiated in February 2010, as well as the repayment of $0.5 million of the Company’s bank loan. This use of funds was partially offset by cash flow from operations for the first quarter of 2010 of $1.4 million.
Conference Call
Tucows will host a conference call today, Wednesday, May 12, 2010 at 5:00 p.m. ET to discuss the Company’s first quarter fiscal 2010 results. To access the conference call via the Internet, go to 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 1-416-849-0833 or 1-800-642-1687 and enter the pass code 72055618. The telephone replay will be available until Wednesday, May 19, 2010 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 manages over ten million domain names and millions of email boxes through a reseller network of over 10,000 web hosts and ISPs. Hover is the easiest way for individuals and small businesses to manage their domain names and email addresses. YummyNames owns premium domain names that generate revenue through advertising or resale. Butterscotch.com is an online video network building on the foundation of Tucows.com. More information can be found at http://tucowsinc.com.
This news release contains, in addition to historical information, forward-looking statements related to such matters as our business, including the price per share at which Tucows will purchase shares and the level of under subscription. 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 first quarter investment community conference call is Wednesday, May 12, 2010 at 5:00 p.m. (ET
TORONTO, April 30 – Tucows Inc. (TSX: TC, AMEX: TCX) plans to report its first quarter fiscal 2010 financial results via news release on Wednesday, May 12, 2010 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.
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Domain registrar Tucows Inc. reaches milestone 10,000,000 domains under management
TORONTO, March 30 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC) today celebrated a significant milestone, surpassing 10 million domain names under management.
The rise to 10 million was led by Tucows’ wholesale services group, OpenSRS. OpenSRS provides domain name registration services through a reseller network of over 10,000 web hosting companies, ISPs, Internet consultants, and other service providers in over 100 countries.
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Tucows Updates Details Related to Normal Course Issuer Bid
TORONTO, March 1 – Tucows Inc. (NYSE AMEX: TCX, TSX:TC) today updated certain details related to its previously announced normal course issuer bid.
As previously announced on February 16, 2010, Tucows’ Board of Directors approved a stock buyback program to repurchase up to $10 million of Tucows common stock. Tucows has the option to repurchase its shares of common stock either through the facilities of the NYSE AMEX or TSX Stock Exchange.
On February 23, 2010, Lacuna Ventures GP LLLP and Rawleigh Hazen Ralls IV, insiders of the Company, filed Form 4’s on EDGAR announcing that they had sold a portion of their holdings in Tucows in the open market.
In the press release of February 16, 2010 Tucows included a statement that it does not intend to purchase its shares from its management team or other insiders.
Although it is still Tucows’ intent not to purchase shares from its management team or other insiders, sales by such persons through the facilities of NYSE AMEX or the TSX may occur if the circumstances of any such person or entity changes or any such person or entity makes a decision unrelated to these normal course purchases. The benefits to any such person or entity whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased by Tucows in connection with the normal course issuer bid.
OTHER THAN AS REFERENCED ABOVE, 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 manages over 9 million domain names and millions of email boxes through a reseller network of over 10,000 web hosts and ISPs. Hover is the easiest way for individuals and small businesses to manage their domain names and email addresses. YummyNames owns premium domain names that generate revenue through advertising or resale. Butterscotch.com is an online video network building on the foundation of Tucows.com. More information can be found at http://tucowsinc.com.
This news release contains, in addition to historical information, forward-looking statements related to such matters as the timing and total number of shares to be purchased under the proposed buyback program, Tucows’ use of block purchases and Tucows’ intent not to purchase shares from its management team or other insiders. 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, The Equicom Group for Tucows Inc., (416) 815-0700 ext. 257, lchamberlain@equicomgroup.com
Tucows Updates Details Related to Normal Course Issuer Bid Through TSX
TORONTO, Feb. 24 – Tucows Inc. (NYSE AMEX: TCX, TSX:TC) today updated certain details related to its previously announced normal course issuer bid through the facilities of the TSX.
TSX has accepted a notice filed by Tucows of its intention to renew its normal course issuer bid commencing February 26, 2010 and ending February 25, 2011, to repurchase up to 3,854,000 (previously 3,748,000) shares of its common stock, which amount represents approximately 10% of the public float of Tucows.
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