Good afternoon, ladies and gentlemen. Welcome to Tucows Fourth Quarter 2012 Conference Call. Earlier this afternoon Tucows issued a news release reporting its financial results for the fourth 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. For today's call, I'll begin with an overview of the financial and operational highlights for the quarter. Mike will then review our financial results for the quarter in detail and I will return with some concluding comments before opening the call up to questions. Q4 was another quarter of solid performance, capping off another year of solid performance, highlighted by our most exciting service launch since OpenSRS. Our results for the quarter and the year underscored the consistency and reliability in our business. We continue to deliver steady growth off of the strength of our core business and we continue to enjoy accelerated growth on Ting with little incremental expense. Total revenue for the quarter grew 13%, from the same quarter in 2011 to $29.8 million, our eleventh consecutive quarter of growth and revenue for the year grew 18% net percent to just shy of $115 million both records for the respective periods. Cash flow from operations for Q4 was $2 million and for the year was $6.3 million allowing us to continue to deliver on our stated objective of returning capital to shareholders which we did through both our normal core issuer bid and our most recent modified Dutch Tender option. Let's look at the highlights for the quarter in each of the three parts of our business beginning with wholesale. Domain services the largest component of our wholesale business continued to perform well in Q4. Revenue for the domain services was up 8% compared to the same quarter of 2011. Transaction volumes continue to be soft, which is consistent with what we were seeing in an industry level. Total transactions were down by 5% from Q4 2011 and just over $2 million. New registrations were down…

Thanks, Elliot. Net revenues for the fourth quarter of 2012 grew to $29.8 million, up $3.4 million or 13% from $26.4 million for the same quarter of last year and our 11th consecutive quarter of record revenue. Cost of revenues before network costs were $22, an increase of $3.5 million or 19% from $18.5 million for the fourth quarter of 2011. Gross margin before network costs decreased by $73,000 or 1% to $7.8 million from $7.9 million for the same quarter of 2011. The decrease is primarily due to the lower contribution from our portfolio revenues stream, which I will discuss in a moment. As a percentage of net revenue, gross margin before network costs decreased to 26% from 30%. 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 our OpenSRS Domain Expiry Stream increased by $601,000 or 12% to $5.8 million from $5.1 million in the same quarter of 2011. As a percentage of revenue, gross margin from wholesale services was 23%, compared with 22% for the same period of 2011. Gross margin for the domain services component of wholesale increased by $103,000 or 3% to $3.5 million from $3.4 million, primarily the result of higher transaction volumes from existing customers. Gross margin for the other value added services component of wholesale increased by $498,000 or 28% to $2.2 million from $1.8 million, primarily the result of another good quarter for our domain name expiry stream. Gross margin for retail services, which includes the contributions of Hover and Ting, increased $290,000 or 33% to $2.1 million from $883,000, primarily the…

Thanks Mike. The ability of our business to generate cash enables us to continue to deliver on our objective to return capital to shareholders throughout 2012. Following on a Dutch tender auction at the beginning of 2012 and a subsequent normal course issue a bit under which we repurchased over 10 million shares. We undertook another Dutch tender auction at the end of November, with the intention of repurchasing up to another 6.5 million shares. The results of the tender were such that we took up 4.1 million shares at a purchase price of $0.50 per share for a total cost of $6.2 million excluding fees and expenses. Clearly we didn't get all the stuff we were looking for, but we ultimately view this is a good thing. We were still able to reduce the number of issued and outstanding shares by another 9%. We are now down to just over 40 million shares outstanding, almost half the number of shares outstanding at the end of 2006. Moreover we see that the vote of confidence in the Company going forward and the way the market has responded close to tender tends to reinforce that. Before opening the call to questions, I want to walk through the business at a high level as we see it looking forward as the business continues to evolve. The business now has four distinct pieces; OpenSRS, YummyNames, Hover and Ting. OpenSRS, the wholesale part of the business is still the largest component and the one that drives the most revenue billed gross margin and the greatest cash contribution. It's also the slowest growing with billed gross margin growth in the higher single digits at times rising into the low double digits. Within wholesale we are seeing a slowing of growth in North America and especially…

(Operator Instructions) Your first question comes from the line of Thanos Moschopoulos from BMO Capital Markets. Your line is open.

Hi, good afternoon.

Hi, Thanos.

Hi, Elliott. Maybe starting off on Ting, can you provide some color around what proportion of new Ting subscribers at this point are bringing their own device? And are the economics on those customers are surely different since you know how to deal with the hardware or is it not too different in either scenario?

Yeah, so I'll deal with those in the reverse order. The bring your own device is a little bit better in the upfront cost, but not a lot. So it's a little bit easier and it's a little bit cheaper, but not a material amount and probably depending on, hey, wanted to look at some of the -- kind of the human touch element, you don't like the $10 less, so it's fine we like it. In terms of that percentage, that's a real moving target. Every time we do something like add glide, we start to change some of that mix. What I can say is it's increasing and it's moving from -- it was obviously -- it was in Q4 that we introduced it. So it was moving from zero. It's kind of in that roughly quarter to third range and is now trending higher than that.

Overall, I mean, is it fair to say that you are seeing a material uptick in growth ever since you launched that capability?

Absolutely, yes.

Okay. And then on the portfolio sales, I guess the takeaway from your prepared remarks is that the softness that you saw on the high value demand sales is just lumpiness. If we look at that the business still on sort of on an annual basis and a longer-term term basis, is there any reason to expect that the revenue from high value domains will look any different for the full year in 2013 than it did in 2012?

We don't think so. We are seeing no reason to kind of go that far. We see interest in high value domain. They tend to be longer negotiations and obviously there are higher prices. So any time you see a little bit off like that, we're going to keep our eye on it a little bit more, but we're seeing nothing to worry about right now.

Okay. And then maybe can you comment further in terms of the industry softness and domain transactions, should our takeaway be that it's just primarily mature markets and maybe to a lesser extent some macro impact there?

Certainly to a lesser extent the macro stuff and when you think that has some impact especially in Europe it's just and again that's in that's checking with our suppliers and competitors. But when we talk about slower growth in maturing market you do have to realize that, that's relevant. So that's relative to what has traditionally been a market with the market size was growing consistently in the double digit percentages every year. So now it's slowing down a bit, you'll see that VeriSign is pointing to growth in the single digits now, if I recall what they were talking about in their last call. So we are seeing the gTLDs now in that single digit range but on the other hand we're seeing the ccTLDs grow more significantly kind of mid to high teens. So growth is slightly slowing but it's still a growing market and relative to a lot of markets in the real world the growth that we're talking about slowing into would be fantastic growth.

Okay then maybe last one on Ting is it still too early to talk about what types of churn metrics you're seeing, being - take us maybe should we wait a few more quarters to get there for you to have some more history before we talk about that or?

Yeah, we're watching churn very very closely and here - and we do want to start to see a full turn of the calendar before we start to think about talking about that. But even with churn we need to really understand the way that the industry is reporting that metric a little better to, when we try and dig in it can be pretty squishy in the way some of our competitors talk about it. So you see when customers come over sometimes they may come over and they just don't have good coverage. So and they're in and they're out in a couple of weeks. I don't know if that's the kind of churn that we're going to be most concerned with at an operating range.

Right.

So we need to figure out kind of not only what is the level of churn but we only -- account as churn as well, and what we're trying to do as much as possible as benchmark relevant to our competitors.

Okay that's great. I think so (Inaudible) I'll let pass the line.

Your next question comes from the line of Aram Fuchs from Fertilemind Capital, your line is open.

Yes now that you have Ting live for a few months and you've tried few marketing channels, can you talk about what's working what's not specifically are the OpenSRS resellers helping out there it seems to me that it's more of a one-off consumer being aided by viral, word-of-mouth marketing, what are your thoughts?

So it's certainly more of what it a consumer, I think that sort of the by far our largest source of new customers is viral word of mouth. At the end of the day what's really driving growth with the fact that people are saving a lot of money and having a fantastic customer experience, which is especially in mobile is such a shock to them quite frankly that they end up talking about it and so there's no question that that's exceeded our expectations. And at the same time, wholesale has been a little bit less than we might have thought, so wholesale is contributing we see a lot of reasons to think that that contribution is going to increase and I will say it's kind of a hybrid of the two when we are starting to see a slightly growing contribution from our Refer a Friend program which is just a great way to get people who are talking about the service already to do so perhaps a little more bigger. So I don't know if we've announced those - have we announced our, no, so you know, more and coming up on Refer a Friend in the near future. But we definitely think that that's a place where we can maybe push a little harder.

Okay because obviously if you're cost of acquisition is less than $100 million and you've told us the monthly economics, it doesn't take that on to get a payback there. So as we're thinking just perhaps increase the refer-a-friend fee that you offer right now or?

We will talk about what we're doing going forward, but we don't necessarily think that it's just kind of -- that there is a linear relationship between the size of the split we offer, whether that through refer-a-friends or what we offer discount from podcasters etcetera. We played around with -- maybe testing with some other stuff and we've really found that it's not the discount, the discount is, the size -- it's not the size of the discount, that's mattering so much. So while it is a variable to play with from time to time, we don't think that that just drives it. In other words, you are right, these paybacks are fantastic, but we are not just going to stretch it out until a lot more money added because we think we will probably be wasting some of that. So instead, we really love to focus on how to keep the price as absolutely low as possible on how to make sort of the sharing of that savings as great as possible. What inside the product can really make it an easy as possible for people to tell us about and get in front of other people. I don't know – well, I know Aram, I pointed you towards it, but again, I mean, Facebook page is remarkable for that, it's really -- I haven't seen a better implementation for kind of a transaction on an e-commerce site around what's going on with our community on Facebook. Aram Fuchs – Fertilemind Capital: Great.

So I think if we could figure out a way to really jack backup somehow, boy, we would love to, but I describe that some sounds like trying to grow a tree faster. There is a little bit you can do, but it's still tricky. Aram Fuchs – Fertilemind Capital: Okay. All right. On the YummyNames business, you mentioned something that the acquisition side of the business might be seen some synergies, I forget while phrasing this.

Efficient. Aram Fuchs – Fertilemind Capital: What's that, I am sorry?

Efficient. Aram Fuchs – Fertilemind Capital: Right, more efficient. But, I mean, we have been at this where the premium domains are listed as a upsell in front of the retail registrars for few years now, why do you think we should all of a sudden see some efficiencies there?

No, that's what I am saying. I think in 2013, we will see efficiencies on the other side of the ledger. So I think what you are saying is absolutely right, whether it's '12 or '11 or '10 there was increased penetration, more and more registrars making it available. I think that a lot of those opportunities have been realized, which is I think what you are saying. In '12, there was still a fair bit of that, but there is not a lot more real estate out there. So where I see the improvements coming out is it bring more and more buyers into the market. So it's less about getting in front of through the purchase path, in front of more people who are already buying, but there is pretty more buyers to the table and we are certainly pushing a lot of our suppliers and partners in that direction. Aram Fuchs – Fertilemind Capital: Okay. And then in capital allocation, you have been quite aggressively in buying back shares, where do you look at it if you keep on these marketing costs less than $100, why wouldn't you push it to $125, $130, it's not events math to say that would probably be a good IRR too right?

It would be if you increase the number of customers correspondingly and so we are doing a fair bit of testing around that and we are not seeing that relationship. We thought we could just turn the dial and have that response, then that's great, but if we just simply end up paying another $25 per customer but not materially increasing the number of customers we add, what we do is waste the money. Aram Fuchs – Fertilemind Capital: Right. Okay, fair enough.

That's what we are trying to figure out, right. If we could figure out a way to have that relationship hold as we increased the dollars, that's not great, but that's not what we are seeing so far. Aram Fuchs – Fertilemind Capital: Okay. And then on these market - market development front that you did not get, I feel like I've heard that before, is that something, that you could sort of give the buy side a little more guidance and when it helps and when it hurts is, or are you surprised by it, how does that?

It generally tends to even out over the year, you know, we'll work with - our supplier partners and we'll generally give indication from them of what the year is going to look like. But at that point, you know, how they pay us, through the year can often change can often be lumpy and sometimes can just be flat out different than what they've told us, so we try and plan and push them to allow us to be as predictable as possible but we play the cards, we're down. Aram Fuchs – Fertilemind Capital: Got it. Great, thanks for your time.

Thanks, Aram.

There are no further questions at this time.

Thanks, operator. We look forward to speaking with you all again next quarter, and thanks.