Tucows.com reported earnings after the market closed today
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.
However Tucows swung to a loss for the Quarter compared to a year ago:
“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 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.”
Tucows had Cash and cash equivalents at the end of the second quarter of $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.es 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.
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.”
Its interesting the YummyNames.com is has become a “Core Revenue Driver” for Tucows with sales up from last quarter.
Looks like Yummynames.com generated $1.63 Million in Revenue up from $1.45 Million for the same quarter a year ago.
The big issue for shareholder’s might be what the average cost of those repurchased shares were.
If Tucows has $1.1 Million less in cash in the bank and used that amount plus some of its ongoing profit to purchase shares, was that a good investment?
The share price of Tucows was over $.90 a share back in February 2010 and actually it close to its 2010 lows.
