DomainReport.ca - Today Canada-based Tucows (a global domain name and internet services company) reported their fourth quarter results, and announced a 'dutch auction' to repurchase up to 4 million of their common shares (approx. 5.5% of the total outstanding). Not too many companies can afford to do a share buyback in today's economic climate, and it's interesting to read their fair to positive outlook for their company in 2009.
Under the share repurchase, shareholders will have the opportunity to tender some or all of their shares at a price within an expected range of $0.32 to $0.45 per share.
"We believe our shares to be an attractive investment and their repurchase by the Company to be a prudent use of cash that is consistent with our long-term objective to create shareholder value," said Stanley Stern, Chairman of the Board of Tucows.
Highlights of the fourth quarter
According to Elliot Noss, CEO, "The domain name component of our OpenSRS Wholesale business is exhibiting solid growth, especially relative to the rest of the domain name market. Our launches of Hover, Butterscotch.com and YummyNames in 2008 have set the stage for us to grow each of these units in 2009.
With our email migration, employee downsizing and more favorable Canadian dollar environment, combined with our recurring revenue model based on high-volume, low-cost transactions, we will produce solid cash flow from operations, which will support our share repurchase programs and generate value for our shareholders."
Net revenue for the fourth quarter 2008 increased 5.0% to $19.2 million from $18.2 million for the fourth quarter 2007.
Net income for the fourth quarter 2008 was $1.0 million, or $0.01 per share, compared with a net loss of $935,000, or $0.01 per share, for the fourth quarter 2007.
Net income for fiscal 2008 was $2.1 million, or $0.03 per share, compared with $2.7 million, or $0.04 per share, for fiscal 2007.
Tucows is a global Internet services company. OpenSRS manages over 8 million domain names and millions of email boxes through a reseller network of over 9,000 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.