Good afternoon ladies and gentlemen. Welcome to Tucows Third Quarter 2012 Conference Call. Earlier this afternoon Tucows issued a news release reporting its financial results for the third quarter. That news release and the 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 1 hour following the completion of this call. Details on how to access the replays are available in today's news release, as well as at Tucows’ website. Before we begin, let me remind you that matters the company will be discussing include forward looking statements and as such are subject to risks and uncertainties that could cause the 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 the Form 10-K and Form 10-Q. The company urges you to read its security filings for a full description of the risk factors applicable for its business. I would now like to turn the call over to Tucows’ President and Chief Executive Officer, Mr. Elliot Noss. Please go ahead Mr. Noss.

Thank you, operator. With me is Michael Cooperman, our Chief Financial Officer. As per our usual format, I'll begin today’s call with a brief overview of the financial and operational highlights for the quarter. Mike will then review our financial results in detail. Then I will return with some concluding comments before opening the call up to questions. Q3 was another solid quarter for Tucows, once again demonstrating the growth, consistency, and leverage in our business. Total revenue grew 17%, compared to $28.2 million, our tenth consecutive quarter of revenue and another record. Cash flow from operations was $2.2 million, a substantial portion of which we used to repurchase another 1.3 million shares under our normal course issuer bid, as we continue to return capital to our shareholders. Each of the three components of our business wholesale, retail, and portfolio continue to perform well during the quarter. Beginning with wholesale, revenue from domain services for Q3 was up 13% year-over-year, despite number of transactions being more or less flat, compared to last year at $2.21 million. Renewal registrations continue to show solid growth, increasing 14% year-over-year and our renewal rate remains above the industry average. New registrations declined by 12%, impacted by general industry softness in North America and Europe and some one-time events. We know that this decline had a relatively small impact on gross margin as it related to extremely low margin customers. Transfers-in increased 8%, excluding the impact of a large one-time bulk transfer-in during Q3 of last year. Total domains under management at the end of Q3 increased 14.1 million, up 21% from the same time last year. The increase is largely the result of the acquisition of a reseller by one of our customers, who then shipped new registrations to hit accreditation on our platform.…

Thanks Elliot. Net revenue for the third quarter of 2012 grew to $29.2 million, up $4.2 million or 70% from $25.1 million for the same quarter of last year and an another record. Cost of revenues before net works costs were $21.4 million, an increase of $3.8 million or 21% from $17.7 million from the third quarter of last year. Gross margin before network costs increased $365,000 or 5% to $7.8 million, from $7.4 million for the same quarter of 2011. As a percentage of net revenue, gross margin before network costs decreased to 27% from 30%. The decrease is primarily the result of revenue derived from the sale of Ting devices, which as Elliot mentioned are sold at or slightly below cost. I will now walk through the gross margin performance in each of our three service categories, wholesale, retail and portfolio. Gross margin for wholesale services, which includes domains and other values added services, provisions through OpenSRS, as well as the sale of the domain names and advertising from the OpenSRS Domain Expiry Stream increased by $373,000 or 7% to $5.7 million from $5.3 million. As a percentage of revenue, gross margin from wholesale services was 23%, compared with 24% for the same period of last year. Gross margin for the domain services component of wholesale increased by $395,000 or 12% to $3.6 million from $3.2 million. The increase is the result of several factors, most notably the higher transaction volumes from existing customers, the impact of the transfer of significant number of names by two of our customers from our registrar accreditation to their own accreditation on our platform, and the contribution of the EPAG acquisition that we completed during the third quarter of last year. Gross margin for the other value added services component of wholesale…

Thanks, Mike. As I discussed in the past, we view Ting as a prime example of the efficiency in our business model. our core business, the non-Ting part of the business is healthy and continuing to do quite well. And we’ve been able to invest a little less there while we are investing more in Ting. Much of this investment is simply a reallocation of existing resources within the organization. What cash investment has been acquired is primarily around on-boarding and acquiring new customers. We are very pleased with our customer acquisition costs today. and I think we are doing it very effectively. I’m not going to give a precise number, but will note that it is well south of $100. We contrast this with the industry average, which we understand to be in the range of $350 to $400, and that’s before device subsidies, which we don’t do. Another fundamentally different aspect of customer acquisition for us is that $350 to $400 spent by our competitors is primarily big traditional media spend such as television, which enriches the networks and the ad agencies. The bulk of our customer acquisition spend is coupon codes, which goes directly into the pockets of the customer. These customer acquisition costs as well as the bulk of customer support costs, which relate primarily to on-boarding new customers, are a function of growth in new customer. As long as the additions to the base are high relative size of the total base, these costs will be relatively high. However over time, as the size of the additions relative to the base goes down. These costs become smaller. there are two things happening at once that investors should keep clear. we’ve been able to launch successful high potential new offerings with a remarkably low level of…

(Operator Instructions) Your first question comes from the line of Aram Fuchs from Fertilemind Capital, your line is open. Aram Fuchs – Fertilemind Capital: The portfolio business, how could an outside investor , figure out if this is still a recurring revenue, or is this a selling off of the gems, you have had for in the inventory for a few years?

Well, I think that the gems are such Aram that we have slightly under a 1,000 of them. And in a quarter, we rarely will sell more than single digits. So just doing the math there are decades worth of supply. So I think it’s very, there it’s really about consistently generating those sales, and do remember that the bulk of the transaction revenue, the bulk of the sales revenue in that line of business is the brandable names, not the gems. Aram Fuchs – Fertilemind Capital: Thanks. And then in Ting, should we look at increased sales on phones, as a proxy’s increased revenue, future revenue; it’s sort of like a DR line, right?

Yeah, I think that’s right. Well, it’s not like a DR line, but it’s like a deferred revenue line, but it certainly indicates new customers. So I think that the reason that we decided to disclose the subscriber numbers and make that easy was because we didn’t want people to have to go through the effort of trying to take the phone revenue and triangulating back to customers. We thought that was really a waste of your time. So we figured, it was simpler just to give you the subscriber data at that point. Aram Fuchs – Fertilemind Capital: Right.

And because of that, you really don’t have to even look at it as a proxy. you can just look at the subscriber data. We’ve said in the past that our customers were in the $150 a year range to us and we’ve told you what the gross margin is and that $150 by the way is a margin number, not a revenue number. So you don’t have to do any proxy. Aram Fuchs – Fertilemind Capital: Great, great.

You can just do simple multiplication. Aram Fuchs – Fertilemind Capital: Great, okay, that’s helpful. And the burn rate you mentioned that the loss estimate on Ting, what is that, that’s coming off from the income statement or that’s including the subsidies on the inventory or can you be a little more specific on that?

Yeah, it’s our income statement. So the bids that come around a device subsidy or things like shipping or flashing of phones that sits in COGS. But the things like, coupon codes, marketing other customer acquisition type expenses, that set is an OpEx, both of which are income statement items. So the number that I put out is kind of a cash number, that’s not an investment in the capital goods. Aram Fuchs – Fertilemind Capital: Right, okay. And lastly, regarding the share buyback, your obviously shareholders like getting capital returns then, I’m just curious that your stock is not overly liquid though, and when did you stop with the buybacks and start with dividends? how do you think about that?

Well, for me, it’s not a question of liquidity; it’s a question of value. we think the stock is really attractive use of capital, right now to buyback. and so to me, that’s really the primary driver and the liquidity is funny thing, because everybody is a seller at a price. so liquidity is really a function of what price you’re a seller at, not whether you would sell, because as you and I have certainly discussed, people are in this with an investment. So, everybody has got a price. Aram Fuchs – Fertilemind Capital: Right. Okay, great. thanks for your time.

Thanks, Aram.

(Operator Instructions) We have no further questions at this time.

Thanks, everyone. and we will see you again in next quarter.