Tucows’ OpenSRS Grows 9% Year-Over-Year

Domain name registrar notes first quarter earnings.

Tucows (AMEX:TCX) noted first quarter earnings following the bell today and disclosed that its OpenSRS business grew 9% year-over-year in both transactions and revenue. OpenSRS includes the firm’s domain registration business as well as e-mail services. The firm hit a milestone of 10 million domains under management at the end of the quarter.

Net income for Q1 was $0.6 million, but that was helped by a pre-tax gain on foreign exchange of $0.7 million.

The firm’s YummyNames division, which sells and monetizes firm-owned domain names, grossed $1.7 million. That compares to $1.9 million in the same quarter a year ago. Despite signing long term domain sales deals, businesses like YummyNames are likely to have fluctuating revenue.

The firm had $5.2 million in cash and cash equivalents on hand at the end of the quarter. That’s down from $9.6 million at the end of Q4 2009, but the change can primarily be attributed to the firm’s buyback of $5.2 million in shares along with paying off $0.5 million of the firm’s bank loan.

Shares of Tucows were up 4 cents to $0.75 in regular trading today ahead of earnings were released.