Toronto, Ontario – (The Hosting News) – February 10, 2006 – Domain name wholesaler and Internet services company, Tucows Inc., has announced financial results for its fourth quarter and the fiscal year ended December 31, 2005.
Highlights for the fourth quarter include:
– A 10% year-over-year increase in net revenue to a record $12.7 million;
– Income from operations of $0.6 million;
– Net income of $1.0 million, the Company’s fourteenth consecutive quarter of profitability;
– Cash flow from operations of $1.2 million, the Company’s seventeenth consecutive quarter of positive cash flow from operations;
– A 14% year-over-year increase in deferred revenue to a record $37.9 million; and
– Signing of a definitive agreement with Critical Path, Inc. to acquire substantially all of Critical Path’s hosted messaging assets. With this acquisition, Tucows becomes a leader in hosted email, further diversifies its revenue stream, adds customers and grows its infrastructure capabilities
Highlights for the fiscal year include:
– An 8% year-over-year increase in net revenue to $48.5 million;
– Income from operations of $1.9 million;
– Net income of $2.8 million;
– Cash flow from operations of $4.1 million.
According to Elliot Noss, President and CEO of Tucows Inc., ”The fourth quarter caps off a year of significant achievement for Tucows. We strengthened our shareholder base and improved our public market listing with our successful secondary offering. We diversified our revenue base and significantly expanded our presence in email with our acquisition of Critical Path’s hosted email business. We strengthened and realigned our people to better reflect our new multi-service environment. We also posted a year of strong financial results with continued growth and profitability in the face of increased ICANN fees and a strengthening Canadian dollar.
We believe that these accomplishments will serve Tucows well for 2006 and beyond and will allow us to focus on our priorities for 2006. These priorities include integrating the Critical Path hosted email business, improving the user experience for Internet services like Blogware and email, increasing efficiency in the market for domain names by leveraging the secondary market and reaching a much broader segment of our channel with our billing and customer care solutions.”
To learn more about Tucows Inc., please visit: www.tucows.com.