Tucows reported earnings for quarter ending September 30, 2010, after the market closed today.
Net revenue for the third quarter of 2010 increased 3.5% to $21.2 million from $20.5 million for the third quarter of 2009.
Net income for the third quarter of 2010 was $1.1 million, or $0.02 per share, compared with net income of $5.2 million, or $0.08 per share, for the third quarter of 2009.
However “Net income for the third quarter of 2009 included the final payment related to the sale of the Company’s equity stake in Afilias Inc. of $1.9 million and a gain in the fair value of forward exchange contracts of $1.9 million.”
It looks like sales from Yummy Names fell to $1.25 million for the quarter compared to almost $1.8 Million in the same quarter last year.
Tucows was up $.04 a share today to close at .$71 in normal trading a gain of almost 6%. Tucows shares are not traded after hours.
“Our third quarter results continued our track record of solid performance throughout 2010,” said Elliot Noss, President and CEO of Tucows. “Revenue reached a record $21.2 million, driven by continued strength in both OpenSRS and YummyNames along with increased contribution from our reinvigorated Hover and Butterscotch services. The consistency and reliability of our business continues to support our objective of returning capital to shareholders, as evidenced by our repurchase of an additional 3.9 million shares in October under our most recent Dutch tender offer.”
“Cash and cash equivalents at the end of the third quarter of 2010 were $5.4 million compared with $8.2 million at the end of the third quarter of 2009 and $4.1 million at the end of second quarter of 2010.”
“Subsequent to quarter end, the Company announced the final results of its modified “Dutch auction” tender announced on September 7, 2010. Under the terms of the tender, Tucows purchased 3.9 million of its shares at a purchase price of $0.70 per share, for a total of $2.8 million. Year to date in 2010, the Company has repurchased an aggregate of 13.7 million shares through both its modified Dutch tender offers and normal course issuer bids (“Buyback Programs”), representing 20.4% of the Company’s outstanding shares at the end of 2009. Since initiating its first share buyback program in February 2007, the Company has repurchased a total of 23.2 million shares through its Buyback Programs representing 30.0% of the Company’s total shares outstanding at the end of January 2007.”
Summary Financial Results
(Numbers in Thousands of US Dollars, Except Per Share Data)
| 3 Months Ended Sept 30, 2010 (unaudited) |
3 Months Ended Sept 30, 2009 (unaudited) |
9 Months Ended Sept 30, 2010 (unaudited) |
9 Months Ended Sept 30, 2009 (unaudited) |
|
| Net revenue | 21,209 | 20,496 | 62,501 | 60,610 |
| Gain (loss) on change in fair value of forward exchange contracts | 142 | 1,878 | (1,669) | 3,902 |
| Other income | – | 1,880 | – | 4,493 |
| Net income for the period | 1,083 | 5,196 | 880 | 10,603 |
| Net earnings per common share | 0.02 | 0.08 | 0.01 | 0.15 |
| Net cash provided by operating activities | 1,876 | 82 | 4,428 | 3,586 |
Summary of Revenue and Cost of Revenue before Network Costs
(Numbers in Thousands of US Dollars)
| Revenue | Cost of Revenue | |||
| 3 Months Ended Sept 30, 2010 (unaudited) |
3 Months Ended Sept 30, 2009 (unaudited) |
3 Months Ended Sept 30, 2010 (unaudited) |
3 Months Ended Sept 30, 2009 (unaudited) |
|
| OpenSRS: | ||||
| Domain Services |
16,517 | 15,098 | 13,817 | 12,326 |
| Email Services | 578 | 842 | 97 | 103 |
| Other Services | 1,086 | 1,109 | 417 | 412 |
| Total OpenSRS Services |
18,181 | 17,049 | 14,331 | 12,841 |
| YummyNames | 1,249 | 1,782 | 180 | 218 |
| Hover | 1,147 | 1,204 | 381 | 493 |
| Butterscotch | 632 | 461 | 12 | 26 |
| Total | 21,209 | 20,496 | 14,904 | 13,578 |
“Net income for the third quarter of 2009 included the final payment related to the sale of the Company’s equity stake in Afilias Inc. of $1.9 million..”
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“Net income” or Capital Gains ?