After the stock market closed today Tucows a member of our Domain Stock Index report earnings for the 4th Quarter ending December 31, 2010
Here are the highlights:
“”Net revenue for the fourth quarter of 2010 increased 8.6% to $22.1 million from $20.3 million for the fourth quarter of 2009.
“Net income for the fourth quarter of 2010 was $1.2 million, or $0.02 per share, compared with $1.7 million, or $0.03 per share, for the fourth quarter of 2009. ”
“Deferred revenue at the end of the fourth quarter of fiscal 2010 was $62.6 million, an increase of 11.1% from $56.3 million at the end of the fourth quarter of fiscal 2009 and an increase of less than 1% from $62.3 million at the end of the third quarter of 2010.”
“Cash and cash equivalents at the end of the fourth quarter of 2010 were $4.2 million compared with $9.6 million at the end of the fourth quarter of 2009 and $5.4 million at the end of third quarter of 2010. The decrease in cash and cash equivalents from the third quarter of 2010 was primarily the result of the use of $2.8 million for the repurchase of the Company’s shares, $0.5 million for repayment of the Company’s bank loan and $0.3 million for investment in equipment, which was partially offset by cash flow from operating activities of $2.3 million.””
“”As previously announced, during the fourth quarter, the Company repurchased 3.9 million of its shares at a purchase price of $0.70 per share, for a total of $2.8 million, under its modified “Dutch auction” tender announced on September 7, 2010. In 2010, the Company repurchased a total of 13.7 million shares for a total of $9.7 million 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.””
“The fourth quarter of 2010 capped off another year of strong financial performance, highlighted by record revenue and solid cash flow from operations,” said Elliot Noss, President and CEO of Tucows. “We believe our performance for the quarter and the year once again underscores the consistency and reliability in our business. As we look ahead, the fundamentals of our business remain strong. The combination of our powerful distribution channel and our demonstrated ability to capitalize on opportunities as our market evolves position us to reliably generate cash in the context of growth and support our objective to return capital to shareholders.”
Here are the particulars:
All figures are in U.S. dollars.
“”
Summary Financial Results
(Numbers in Thousands of US Dollars, Except Per Share Data)
| 3 Months Ended Dec. 31, 2010 (unaudited) |
3 Months Ended Dec. 31, 2009 (unaudited) |
12 Months Ended Dec 31, 2010 (unaudited) |
12 Months Ended Dec. 31, 2009 (unaudited) |
|
| Net revenues | 22,077 | 20,330 | 84,579 | 80,939 |
| Gain (loss) on change in fair value of forward exchange contracts | 298 | 277 | (1,371) | 4,180 |
| Other income | (16) | (46) | (116) | 4,268 |
| Net income for the period | 1,237 | 1,746 | 2,117 | 12,241 |
| Net earnings per common share | 0.02 | 0.03 | 0.04 | 0.18 |
| Net cash provided by operating activities | 2,341 | 2,880 | 6,769 | 6,466 |
Summary of Revenues and Cost of Revenues
(Numbers in Thousands of US Dollars)
| Revenue | Cost of Revenue | |||
| 3 Months Ended Dec. 31, 2010 (unaudited) |
3 Months Ended Dec 31, 2009 (unaudited) |
3 Months Ended Dec 31, 2010 (unaudited) |
3 Months Ended Dec 31, 2009 (unaudited) |
|
| OpenSRS: | ||||
| Domain services | 17,308 | 15,211 | 14,565 | 12,578 |
| Email services | 529 | 799 | 104 | 110 |
| Other services | 1,104 | 1,130 | 366 | 410 |
| Total OpenSRS services | 18,941 | 17,140 | 15,035 | 13,098 |
| YummyNames | 1,531 | 1,521 | 181 | 193 |
| Hover | 1,172 | 1,208 | 398 | 443 |
| Butterscotch | 433 | 461 | 9 | 12 |
| Network, other costs | – | – | 1,148 | 1,248 |
| Network, depreciation and amortization costs | – | – | 313 | 285 |
| Total revenues/cost of revenue | 22,077 | 20,330 | 17,084 | 15,279 |
All they are doing is selling old domain inventory to make up for shortfalls in the core business. This will last for a while but not forever…
“1.5 Million In Sales In 4th Q”
Again…
What was that sale figure reported by F. Schilling for the last few months?
Domo
Frank I think reported $7 million in sales since July 2010
Marchex reported $2.1 million in sales for 4th Q yesterday
Nearly 50 % more in a quarterly basis.
their Overheads are strikingly different .
Yummynames fer sure…
A crafty front for enom for all the names they swipe that don’t renew…
what a racket!
what you didnt see in the pr
we continued to use company money to buy out stockholders, rather than build any cash cushion or make accretive acquisitions, or innovate or start the next facebook or groupon, we’d rather buyout stockholders.
on a positive note we didnt overpay for any acquisitions this quarter
we continue to squander the chance to grow our company to 1/10 the size of other competiters in the marketplace given our stready stream of expired names we retain from early adopting net customers
our prepaid revenue from future years registrations guarantee us a continued stream of earnings, but we have spent the money already so its a liability on the books.
rather than innovate, since no one can take us over or replace management, consider your stockholdings to do not much,
3 years ago we had $30 million, now weve bought back 30 million of shares, if we can continue to earn zero % on these funds we will continue our program
ok so im a frustrated shareholder, so much opportunity, so little delivery.
if only……
with respect to the issue of cherry-picking and/or keeping choice expiring names for themselves … instead of letting customers have a fair shake at them………. Virtual insider trading !!!
Tucows is one of those registrars who has been cherry picking expiring names for their own account for quite a while with an unfair & distinct insider advantage…. instead of letting customers or the public have a fair shake at them……. If the equivalent is done in the securities industry, it would be called insider trading and also self-dealing….. Register.com has been doing this in a big way also in recent history.
My respect for Tucows dropped precipitously when I was speaking to Elliot Noss on the phone 3 years ago regarding a very time consuming problem (and inept customer service) with their old expiring name system….. When I brought up the topic about Tucows cherry picking and “keeping” the better quality expiring names…Noss clearly stated in a firm and seemingly proud tone —> ” I’m angry” If our domain drop service is having a good day for customers …whereby customers are getting many good names in the drop, instead of Tucows pre-empting that and pulling the domains aside for their proprietary account) — I guarantee this is 100% truthful and accurate…..It still gets my Irish up big time.
ICANN (and other regulators) allowing this to happen is terrible.
I’d love to see an Eliot Ness type-of-guy zeroing in and stopping this sweetheart deal & conflict of interest crap.
Gotta love the 2 Cows in the logo though — LOL
ICANN is a complete joke for allowing Tucows to continue appropriating valuable EXPIRED domain names that they have no business keeping.
Instead of creating more nonsense TLD’s and gTLD’s they should spend 5 minutes cleaning up this dirty dealing.
Don’t hold your breath.
Regarding YummyNames.com revenue, it appears it also includes advertising revenues (in addition to domain name sales.) I don’t think they provide a break down between those two groups?
During the Question & Answer session, Elliot Noss indicated search revenue was in the $300k range (which he indicates is down and has been on a steady decline.) So I assume it is fair to assume that the sold roughly $1.231 million worth of domains during the quarter. Not much of a difference, but I always wondered if the YummyNames division included search revenues as well….
“Yummynames fer sure…
A crafty front for enom for all the names they swipe that don’t renew…
what a racket!”
———
@ Landon
Yummynames is owned by tucows, as far as I know they’re nothing to do with enom.
Are you saying Tucows owns enom, or enom owns tucows?
I beleive enoms drop shop is called acquirethisname.com