Tucows Inc. (AMEX: TCX) shares jumped 10 percent, or 9 cents to $.99 today, moving on volume of 647,000, creeping toward its 52-week high of $1.00 in mid-afternoon trading.
The Internet services provider announced its first-quarter financials yesterday, reporting a 16 percent increase in year-over-year net revenue, with record results of $17.8 million, up from $15.3 million for the three months ended March 31, 2006.
“The first quarter of 2007 was highlighted by another solid financial performance,” said Elliot Noss, president and CEO of Tucows Inc. in a statement. “We continue to grow our business by using our wholesale channel to deliver Internet services like domain names and email that are critical to our service provider customers. As our business scales, the leverage in our business becomes more and more apparent. We expect to see continued growth as we move forward.”
Net income for the first quarter 2007 was $750,000, or 1 cent per share, up from a net loss of $157,000 for the same period last year.
In a statement, the company said first-quarter results are on track to meet its target of $10 – $12 million in cash flow from operations for 2007.
“We continue to expect domain registration revenue to grow in the low double digits and remaining revenue to grow at higher rates. We expect that operating expenses will only increase at about half the rate of gross profit,” said Noss.
Tucows utilizes a portfolio of subsidiaries to provide Internet services and downloadable software to Web hosting companies, IPS and other service providers around the globe. The company offers a variety of services – from domain registration to advertising options. The company’s advertising services include the use of the pay-per-click method that many companies such as Google have adopted.
The company was founded in 1992 as Infonautics Inc. and changed its name to Tucwos Inc. in 2001. Tucows trades on the AMEX as TCX and on the Toronto Exchange as TC.TO.