Good afternoon, ladies and gentlemen, welcome to Tucows Inc. second quarter fiscal 2010 conference call. Earlier this afternoon, Tucows issued a news release reporting its financial results for the second quarter of fiscal 2010. The news release and financial statements are available on the company’s website at tucowsinc.com under the Investors heading. Please note that today’s call is being broadcast live over the Internet and will be archived for replay both by telephone and via the Internet beginning approximately one hour following the completion of this call. Details on how to access the replays are available in today’s news release reporting the first quarter financial results as well as at Tucows website. Before we begin today, let me remind you that the matters that company will be discussing include forward-looking statements, and as such, are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company’s documents filed with the SEC, specifically the most recent reports on Form 10-K and 10-Q. The company urges you to read its Securities filings for a full description of the risk factors applicable for its businesses. I would now like to turn the call over to Tucows President and Chief Executive Officer, Mr. Elliot Noss. Please go ahead, sir.

Thank you, operator. Good afternoon, and thanks for joining us today. With me is Michael Cooperman, Tucows Chief Financial Officer. This afternoon’s call will follow our usual format.I will begin with a brief overview of our financial results and operational highlights for the quarter. Mike will then review our financial results in detailand I will return for some concluding comments before opening the call up to questions. Our second quarter results continue to demonstrate the consistency and reliability that have become the hallmarks of our business.Revenuegrows just over 4% year-over-year to $20.8 million. Again this quarter, this growth was achieved in the face of lower contribution from both our email service and direct navigation name sales that we’ve discussed on previous calls. Adjusted cash EBITDA for the quarter was $1.7 million and we once again generated positive cash flow from operations, which totaled $1.2 million for the quarter and which I will note was dampened by the use of approximately $800,000 for working capital requirements. Then Mike will discuss this in a more detail in a few minutes. I would like now to briefly review some of the operating highlights for the second quarter beginning with OpenSRS. The OpenSRS domain service continued to exhibit steady year-over-year growth in transactionvolumes in the second quarter. Total transactions grew by 11% compared to the second quarter of last year, with new registrations growing 9% and renewals growing 12%. I will note that our renewal rate saw another bump up in the second quarter, again performing above industry average. As a result of continued growth in domain transactions, domains under management at the end of the second quarter grew to well over 10.1 million. All of this contributed to year-over-year growth in domain service revenue of 7%. Our competitive position remains strong and we…

Thanks, Elliott. Net revenues for the second quarter of fiscal 2010 increased 4.1% to $20.8 million from $20 million for the first quarter of last year. I will breakdown the impact of each of our serviceofferings on overall revenue when I discuss the gross margin contribution in a moment. Cost of revenues, before network costs, for the quarter increased by $1 million or 7.6% to $14.2 million from $13.2 million for the same quarter of last year. In discussing our operating results, I would like to remind you that a significant portion of our operation costs are in Canadian dollars. Our results therefore should be viewed within the context of the negative impact of the strengthening Canadian dollar relative to the U.S. dollar has had when they were compared to last year. To give you some sense of this impact, in the second quarter of this year the Canadian dollar was approximately 12% higher relative to the U.S. dollar than in the second quarter of last year. Despite this currency impact, network cost have decreased by 209,000 or 11.9% to $1.5 million from $1.8 million for the second quarter last year as the impact of the higher Canadian dollar was offset by the efficiencies we have gained in operating and managing our co-location facilities and the fact that certain of our older computer hardware which is now being fully depreciated has not required replacing. Gross margin for the second quarter of this year increased slightly to $5.1 million from $5 million for the same quarter last year. On a percentage basis, gross margin was 24% down marginally from 25% for the same quarter of last year. Gross margin seem to have settled in this range following our shift in sales mix from higher margin services to lower margin domain name…

Thanks, Mike. The consistency and reliability in our business in our business has enabled us to continue to deliver on our stated intention to return capital to shareholders. During the second quarter, as Mike noted, we repurchased an additional 2.5 million shares under our open market buyback program bringing the total number of shares repurchased this year including those repurchased under our best tender offer at the beginning of the year to 9.8 million shares, were more than 14% of our outstanding shares at the end of last year. All told, since we commenced our first Dutch auction tender at the beginning of 2009, we’ve taken up almost 16 million shares or more than 21% of our outstanding shares at the end of 2008. We remain committed to returning capital to shareholders and we feel the specific tactic of Dutch auctions has been very successful for us. We believe that our current valuation, our shares continue to represent excellent value. We also believe that returning capital to shareholders is the most appropriate use of our capital. It is preferable to M&A as a core strategy, which empirically is rarely efficient. It is also preferable to holding large cash balances as our growth opportunities are simply not capital intensive. We also believe that operating efficiency as I talked about it late last quarter, is simply good business practice and something that is even more important in the future as all businesses and markets become even more competitive. We had some investors and potential investors ask us how these things returning capital and focusing on operating efficiency relate to growth. More pointedly, we’ve had some people suggest that returning capital to shareholders and focusing on operating efficiency could be seen as the company not having growth opportunities. This is not the case.…

(Operator instructions) Your first question comes from the line of Thanos Moschopoulos, BMO Capital Markets. Your line is open. Thanos Moschopoulos – BMO Capital Markets: Hi, good afternoon.

Hi, Thanos. Thanos Moschopoulos – BMO Capital Markets: Hi, Elliot. You talked earlier about how you feel good about the competitive position of our OpenSRS business, you had 11% transaction growth there. I know it’s kind of hard to get some of the industry stats on that, but – how – whatyou’re sense is to how that 11% transaction growth compares to the broader industry?

You know, I think that we’re doing relative to most of our competitors we’re doing extremely well are well. I think that for better or worse it is still in many respects to Go Daddy world and we’re all just living in it. So Go Daddy, I think uniquely has kind of had an outsized performance and that’s certainly something that we want to watch and study as much as possible. Now Go Daddy’s wholesale business when we’re going up like directly kind of for webhosting customers, we don’t see them very much. They do have a smaller wholesale business but where Go Daddy success does impact us is in smaller sight designers’ things like that. So we feel very, very good about our competitive position and in order to kind of take that further, we think we’ve got to reach better and more effectively into some of those smaller, kind of design and consultancy type customers. Thanos Moschopoulos – BMO Capital Markets: Okay. That’s fair. I kind of earlier today proved Chinese character domain names, is that something that you can benefit from or would is that going to be tricky just as a function of not having a presence in the geographies that that you’re put into?

Well, we really we do have partners in over 120 countries now if I’m not mistaken and I think that when you’re talking about those Chinese characters, we think that there is some opportunity in, they’re called IDNs, Internationalized Domain Names, in some of the other IDN markets, potentially little more China. China in particular, tends to be a market that it is characterized by two things, one it’s primarily served by Chinese companies and two, there is a lot of regulatory questions in the Chinese market. Don’t know if you’ve followed but with the Chinese top level domain .CN there was a radical pronouncement made recently that fundamentally changed that market and drove most of the international registrars out of it. So China in particular, is kind of a tough go. I will tell you that with IDNs, Internationalized Domain Names, in particular and with global growth in general, we’re very excited with both some of the progress and some of the plans we have in developing markets around the world. Thanos Moschopoulos – BMO Capital Markets: Okay. As far as the direct navigation business, you alluded to the fact that’s still under pressure. How much further before that hits bottom or is such a – is it small most of part of the business now that’s not really overly material at this point.

Yeah. It – it – it’s says it’s not killing us. We’ve never been a company that focuses on direct navigation. When you’re looking at that market more broadly, I think us, like the rest of the industry are just hoping from big things from the Bing, from the Microsoft, Yahoo! Mergers for Bing so that there is real competition there. I think that as some of the bigger dominos start to fall, the AOL businesses are for bid right now is an example. There are one or two more big pieces like that. The next large market share swings very likely will be in direct navigation space with domain names and so we’re hoping that that starts to heat up from a competitive standpoint as well. Thanos Moschopoulos – BMO Capital Markets: Okay. And then finally, as far as the butterscotch business, what do you see sort of being the key in terms of accelerating the revenue growth there. Is it just going to be progressive growth as you keep monetizing from that traffic that you’re getting or is it just some way to sort of accelerate that?

Well, I think that there are two things that are true. Broadly, any where you read, everybody is excited about video on the internet. The second thing that’s also true, broadly everywhere you read, nobody is really thinking out how to monetize it yet. So we’re coming out with butterscotch. We think that we wanted just keep growing that business, sticking out our place in the world, I think we’ve done really well in establishing ourselves as a player in producing real high-technology video, not user generated stuff but level up from that. Where we think some of the earlier positives might come from is some of the places where we are looking to drive synergies. So we think two, one that I’ve mentioned before is what we loosely call corporate video or be a purpose built videos for companies usually in technology that might be in a show format. It might be in promotional video format. But there is a big cost advantage when butterscotch is producing something relative to the traditional competitors of TV production houses. It is a huge cost and therefore price advantage and we’re seeing the benefits of that because the quality is virtually not differentiable. The second play is we’re looking for places where we can bring that video potential to the rest of our business, Hover and OpenSRS. We deeply believe that one of the best uses of video on the internet is helping people use things, in helping people use things that they don’t know how to use well enough. So we’ve had some real success using some of the production capabilities of butterscotch, we recently did a transfer series for OpenSRS that was really excellent in its quality and we just launched this. So we’re just starting to see the impact. But also looking for places where we can put video production together for some of our wholesale OpenSRS customers or hosting companies in for ISP who have huge customer bases that can use, certainly much more help in getting the most of internet services. That’s some stuff that we think really could hold some potential. Thanos Moschopoulos – BMO Capital Markets: Okay. That’s great. I’ll pass the line. Thank you.

Thanks, Thanos.

The next question comes from the line of Alex Grassino, Laurentian Bank Securities. Your line is open. Alex Grassino – Laurentian Bank Securities: Good afternoon, guys.

Hi, Alex. Alex Grassino – Laurentian Bank Securities: Hi. Just on the messaging side of the business, curious to see how you see things on folding from there, I’m guessing at about 600 K a quarter you with senses you just stabilize at this point and any growth coming from that will probably be as you say incremental? Anything else you can add to that in terms of qualifications or is that essentially what the bottom line is?

No. I think it’s the right assessment. We’re always looking at the pipeline with happy eyes. Alex Grassino – Laurentian Bank Securities: Okay.

I think that there is a lot in there that we’re excited about it. One of the reasons you didn’t hear me comments about it, you heard Mike comments about it, is because the – I feel like I’ve said that ones or twice recently. And I really like to next talk about a couple of nice movements coming out the other side. Alex Grassino – Laurentian Bank Securities: Sure. Sure.

And you know that’s really, I much more liked to do than say and so that’s really why you didn’t hear me comment on that at this quarter. Alex Grassino – Laurentian Bank Securities: Sure. And in terms of the .CO, just curious to see if you could perhaps breakout what kind of contribution in terms of new business they’ve added to the registration side of the business?

It’s all Q3. So you won’t see in the Q2 numbers yet. Alex Grassino – Laurentian Bank Securities: Okay. Okay. So…

It’s virtually all Q3. There might have been some of the early landless sunrise stuff in Q2… Alex Grassino – Laurentian Bank Securities: Okay.

And no, Mike shaking his head no. So I think its all set – it all settles in the Q3. Alex Grassino – Laurentian Bank Securities: Okay. Perfect. And I guess the next question I have is just some of the TLD because there has been a lot of debate recently about the .XXX domain names. Do you have any thoughts on that as well?

Yes. I guess I have one loment which is sadly I fear that this might have some negative impact on the speed in which we’ll see the new TLD rail, the top-level domain run. There is going to be this broad liberalization. I think we’re all hoping that at the Cartagena ICANN Meeting in December that there is a significant step forward with new top-level domains. There is and it was just last week, a whole new issue introduced by governments bringing to ICANN, I shouldn’t say completely new but certainly very late in a day issue around what they’re calling morality and public order and nothing in ICANN would be complete without an IC – acronym so this is MAPO, morality and public order. And now there is an issue rising at about and it’s really to a large extent driven by XXX. There is an old aphorism, an old saying Bad Facts Make Bad Law and while I have no – I was going to say no (inaudible) seen him again but that would have been about ton around XXX. I – well I have no direct thoughts and I’m very – I’ve no direct thoughts around XXX and its potential revenue capability. I do – it’s a tough case and a lot more complicated than a lot of other things it might happen with top-level domains, so I just hope that this doesn’t slow things down. Alex Grassino – Laurentian Bank Securities: Perfect. Thank you.

Thanks Alex.

There are no further questions at this time, Mr. Noss. I'll turn the call back over to you.

Thanks very much and we look forward to speaking with you all again next quarter. Thank you, operator.