Cheap Web Hosting Directory, Affordable Hosting Services - Web Hosting Domain Registrar, Tucows, Issues Fiscal Report

Toronto, Canada - (Cheap Web Hosting Directory) - May 9, 2008 - Provider of Internet services to web hosting companies, ISPs and other service providers worldwide, Tucows Inc., has reported its financial results for the first quarter of fiscal 2008 ending March 31, 2008.

Elliot Noss, President and Chief Executive Officer, Tucows Inc. explained, ''The results of the quarter were right in line with expectations. We are seeing the positive impact of the domain price reduction with an 18% year/year improvement in renewals among other positives. We expect traditional domain name registration to contribute favorably to gross margin in the remainder of the year. In addition, the migration of our email customers to our enhanced platform is nearing completion and we expect to realize considerable cost savings during the second half of the year.''

Net revenue for the first quarter of fiscal 2008 increased 5% to $18.7 million from $17.8 million for the first quarter of fiscal 2007.

Adjusted Net Income for the first quarter of 2008 was $1.0 million, compared to $2.4 million for the corresponding quarter of last year. Net loss for the first quarter of 2008 was $1.1 million, or $0.01 per share, compared with net income of $0.7 million, or $0.01 per share, for the first quarter of 2007.

Deferred revenue at the end the first quarter of fiscal 2008 was $53.6 million, an increase of 12% from $48.0 million at the end of the first quarter of 2007 and an increase of 6% from $50.6 million at the end of the fourth quarter of fiscal 2007.

Cash and restricted cash at the end of the first quarter of fiscal 2008 was $7.5 million compared to $8.1 million at the end of the fourth quarter of fiscal 2007 and $6.6 million at the end of the first quarter of fiscal 2007. Cash flow from operations of was $0.1 million during the first quarter of fiscal 2008.

Mr. Noss continued, ''While the strength of the Canadian dollar, last year's price reduction for domain registrations and cost burden of carrying multiple email platforms held down our bottom line results this quarter, the positives noted above, combined with the anticipated continued growth in our domain portfolio business, will place us in an excellent position to achieve our stated goal of growing revenue, profitability and cash flow in 2008.''

Tucows hosted a conference call, which will be available until Wednesday, May 14, 2008 at midnight. To access the archived conference call via the Internet, go to http://about.tucows.com and click on ''Investors.''

Tucows provides Internet services for web hosting companies and ISPs. Through our global network of over 9,000 service providers we provide millions of email boxes and manage over eight million domains. Tucows is an accredited registrar with ICANN (the Internet Corporation for Assigned Names and Numbers). We hold a domain name portfolio of approximately 150,000 domain names that are available for sale, monetized through advertising and support our wholesale Personal Names Service. Our Retail division sells Tucows services to consumers and small business owners through Domain Direct, IYD (It's Your Domain) and NetIdentity. Tucows.com remains one of the most popular software download sites on the Internet.

For more information, please visit: www.tucowsinc.com.

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