Monday, internet service provider Tucows Inc. (TCX), reported a third-quarter net loss that narrowed from the year-ago period primarily due to lower interest expenses.
The Toronto, Canada-based company reported a third quarter net loss of $0.07 million that narrowed from $0.31 million in the corresponding quarter last year. On a per share basis, earnings for both the comparable quarters were break even.
Adjusted net income for the third quarter of 2008 was a loss of $0.09 million, compared with an adjusted net income of $1.1 million for the third quarter of 2007.
Net revenues for the quarter increased 13.1% to $20.15 million from $17.81 million in the comparable period last year.
Deferred revenue at the end the quarter increased 9% to $54.4 million, from $49.8 million in the prior-year similar period.
Cash and restricted cash at the end of the third quarter was $2.7 million compared with $6.2 million at the end of corresponding period last year.
Interest expenses for the third quarter decreased to $0.09 million from $0.20 million in the comparable period of 2007.
For the nine-month period, net income decreased to $1.06 million or $0.01 per share from $3.61 million or $0.05 per share in the similar period last year.
Net revenues for the nine-month period increased to $59.31 million from $56.40 million in the corresponding period last year.
Elliot Noss, President and CEO of Tucows, said, "the significant strengthening of the Canadian dollar during the quarter negatively impacted net income by over $1 million compared to the third quarter last year. As a result, while we still expect 2008 revenue and net income to grow compared to last year, we now expect cash flow from operations for 2008 to be lower than last year."
Noss also added, " Our business will continue to generate strong cash flow from operations. This, combined with proceeds from the sale of our equity position in Afilias and the recent divestiture of non-core hosting assets will support our share buyback program, as we focus on realizing value for our shareholders."
Tucows closed Monday's regular trading at $0.44, up $0.03 or 7.32%, on a volume of 34,619 shares on the AMEX.
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