Good afternoon, ladies and gentlemen. Welcome to Tucows’ Second Quarter 2014 Financial Results Conference Call. Earlier this afternoon, Tucows issued a news release reporting its financial results for the second quarter. That news release and the financial statements are available on the Company’s website at tucows.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. Before we begin, let me remind you that matters that 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 and thanks everyone for joining us today. With me is our Chief Financial Officer, Michael Cooperman. As per our usual format, I’ll begin today’s call 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’ll return with some closing thoughts before opening the call to questions. Quarter after quarter, we have demonstrated the underlying consistency and reliability of our business. This quarter, with the increasing impact of Ting on our financial results, we’re starting to show appreciable growth in earnings. Consolidated revenue grew more than 14% year-over-year to $35.6 million, which was in line with our previous record in Q3 of last year when we had an outsized portfolio contribution. Gross margin, however, grew 42%, which took our gross margin percentage up 5 percentage points, from 22% to 27%. The bulk of this increase was driven by the growing contribution of Ting and that’s despite the impact of essentially no margin on over $1 million of devices. We’ll continue to see this trend in the coming years as Ting becomes a bigger and bigger part of the business. This will be helped along by the now improving margins in the Wholesale domains business, which I’ll discuss more in a moment. Q2 was another solid quarter of customer growth for Ting. On our last call, we projected that Q2 net adds would land somewhere between those of Q3 and Q4 of last year, or between 11,000 and 12,000 accounts. We ended up matching Q4, adding just over 12,000 accounts and 18,000 devices. That represents a 20% growth in our customer base in total, bringing our totals to over 73,000 accounts and 112,000 devices. Until today, we have reported just net adds on…

Thanks, Elliot. As Elliot discussed at the outset, the second quarter again saw solid year-over-year revenue growth, $4.4 million or 14% to $35.6 million from $31.2 million for the second quarter of last year. Cost of revenues before network costs were $24.7 million, up $1.7 million or 8% from $23 million. Gross margin before network costs increased by $2.7 million or 33% to $10.9 million from $8.2 million and as a percentage of net revenue increased to 30% from 26% compared to Q2 of last year. I’ll now review gross margin performance in each of our service categories. As a reminder, last year we began breaking our team separately under the heading Network Access with our wholesale, retail and portfolio domain revenue streams being classified as Domain Services. Starting with Domain Services, gross margin for all Domain Services in aggregate increased $261,000 or 4% to $7.6 million. Gross margin for the wholesale component of Domain Services, which includes wholesale domain services and other value added services increased $172,000 or 3% to $5.5 million from $5.4 million for the same quarter last year. Within Wholesale gross margin from wholesale domain services increased by $380,000 or 11% to $3.7 million from $3.3 million for the same quarter last year. This increase is primarily the result of the ongoing shift we are seeing in sales mix to higher margin services that Elliot touched on earlier. This shift offset the negative impact on margin of a handful of larger customers that have migrated their businesses to their own accreditations. The migrations also impacted transaction growth such that transactions process during the quarter were relatively flat from the same period last year. Gross margin for value-added services decreased by $206,000 or 10% to $1.8 million from $2 million, primary the result of one large customer…

Thanks Mike. Most investors will remember that in Q2 last year we reported that subsequent to the quarter end we had a large gain from the resolution of contention in two new gTLD applications, .media and .marketing. We had the same thing happen this year with the resolution of contention for .group. We had a minority stake in one of a group of applicants for the string. We will recognize the revenue in Q3 in our portfolio line of business. It is certainly smaller than last year’s gain and is much like a nice large sale in the portfolio business. The specifics are subject to confidentiality. We have remaining minority interest in the applications for three strings .online, .tech and .store. We have no expected timeline for resolution of the rest. We also do not know whether we will win the strings and require capital, resolve the menu private option whereas the loser will be compensated or resolve the (indiscernible) option whereas the loser will receive nothing. I’m really saying that investors should view these applications as having option value. With the strong performance in Q2 and the successful result of the .group application, we would like to adjust upwards our guidance for 2014. Previously, we were expecting our EBITDA for 2014 to be in $13 million to $13.5 million range. We are now comfortable in the $14.5 million to $15 million range. In summary, the quarter was strong. We are executing well. We continue add Ting customers at a nice clip and we are now seeing the benefits from the Ting business to both gross margin and net income. Things are unfolding as they should and in a way that continues and will continue to reward of long-term investors. And with that, I’d like to open the call to questions. Operator?

(Operator instructions) Your first question is from Hubert Mac with Cormack Securities. Hubert Mak – Cormark Securities Inc.: Hey, guys. Maybe I’ll just start with Ting, now that we’re in August and maybe a comment sort of where you think the quarterly add is going to be as we move over the next couple of quarters?

I think the things are sort of chugging along. Last year we definitely saw an uptick through the – but that uptick was in the back half of August and through September and then of course Q4 is supposed to be seasonally very strong for the industry and it was for us as well. So I think what we’re seeing now first time on Q3 is consistent with what we’ve been doing. And we’ll have to see we if benefit from some of that seasonality. Hubert Mak – Cormark Securities Inc.: Okay. And then on the gross margin – on the Ting here, it’s gone up from Q1 here and I’m guessing has it do with hardware component. So would you tell us what the hardware amount was in Q1?

Mike, do you have that number? You mean in Q1 or Q2? Hubert Mak – Cormark Securities Inc.: Q2, I think, it was $1 million, right. So I’m just wondering whether Q1 was…

Hubert, in Q1 it was a similar amount to Q2, just over $1 million. Hubert Mak – Cormark Securities Inc.: Okay. And then I believe you talked about $35 per month per sub. Is that a trend that can you – sort of seeing over the past few quarters like – and is that something that you feel is going to be consistent going forward here?

Yes. So that’s been a generally consistent number with a very slight upward trend. One of the interesting phenomenon that we have seen is when we dropped our pricing in February, we saw a [confident] (ph) increase in usage, especially and primarily around data. So most of the price savings were around data and most of the usage increase was around data. And what was especially interesting about that is we’ve talked in the past about how we get a unique view of behavioral data, both around people’s device selection and around their phone usage. We don’t have phone subsides. We don’t have unlimited plans. So we see pure behavior. And when we have that price drop we saw a surprisingly large, exceeding our expectations, a surprisingly large increase in usage. Hubert Mak – Cormark Securities Inc.: Okay. And then, I know and you talked about the customer acquisition costs, still below $100. And is it still well below $100 and do you expect to keep that up to $100 or is that still may be well below $100 going forward?

Yes, right so. I think that you didn’t hear me talk about any experimentation like I did in Q1. We’ll try and call that out. I think unless we’re talking about it, particularly you should think that it’s pretty consistent with that. Hubert Mak – Cormark Securities Inc.: Okay. And there are such a lot of domains here. I don’t see any margins has moved up here quarter-over-quarter and not see you’re going to comment right here in terms of sales mix. Can you just maybe give us more color in terms of this higher margin services like what are the reason, what’s driving that? And maybe is it more new services that’s driving this or is it gTLDs that are driving the end margins?

I think it’s a good healthy range of some additional subscription type services around domain names, very simple stuff. And, again, we’re seeing increases in both ccTLDs and the new gTLDs, both of which we have higher margins on than we do with the more traditional common in fact. Hubert Mak – Cormark Securities Inc.: Okay. So as the new gTLD continue to come through here is that the thinking here that the margins will continue to pick up here going forward.

Yes, but I think that the primary driver on gross margins will continue to be Ting’s percentage of the business. So Ting is growing so much faster than the domain side of the business and has appreciably better margins. So that will be the primary impact. You’ll see margin continue to pick up, but slowly and on a decreasing percentage of the total business. Hubert Mak – Cormark Securities Inc.: Okay. And then just on the Hover here, the margins. Obviously you guys showing some promotions here. What do you think is a good margin, like moving forward here do you guys expect to spend more here or is that…

We think, Hover, is going to be pretty consistently in the low to mid 60. So it’s the highest margin of the major contributors. Hubert Mak – Cormark Securities Inc.: Okay. And then a high level question. Obviously you guys have pretty good cash net cash flow on the balance sheet. Actually, maybe, first of all, do you think Ting right now is more of a self-sustaining business now or do you still think you have to fund this with the Domain business here?

No, it’s self-sustaining. Hubert Mak – Cormark Securities Inc.: Okay. So I guess given your cash balance and the cash flow coming through from your Domain business and now that Ting obviously is now self-sustaining, what’s the thinking here in terms of the cash here? Are you guys being more active here on the share buyback here or…?

Yes, so I think there’s probably three things worth noting. One, we definitely have a view consistent with our focus on return on assets that you don’t want cash just sitting around just add management. Second, we remain committed to returning capital to shareholders. And third, we’re always looking for opportunities, both strategically and around deploying capital. So I think all those things are true. And you know us well enough to know that we have some specific to talk about that we will. Hubert Mak – Cormark Securities Inc.: Okay. And then, lastly, here on the guidance, I know you’re taking you guidance up. Is that mainly driven by the sales in Q3, or is other things involved in this certain domain?

You said mainly. So I don’t want to split it into dollars to precisely. Certainly the resolution of – it’s not on the scale, but the resolution of contention in the .group process contributed, but just sort of good consistent strong operating, a little bit better than we expect the results contributed. Hubert Mak – Cormark Securities Inc.: Okay, thanks. I’ll pass the line.

Thanks.

(Operator Instructions) The next question is from Roy Liao with Goudy Park Capital. Roy Liao – Goudy Park Capital: Hi, Elliot, great quarter. Thanks again for the transparency and the terrific churn numbers that really helped investors out.

Thanks. Roy Liao – Goudy Park Capital: So my first question is just to talk about the EBITDA margins. It’s been trending up pretty significantly. Obviously it’s coming from Ting. Can you talk a little bit about two, three years now as Ting gets to 100,000, 200,000 subscribers, Companywide EBITDA margins hit 15%, 20%. I mean is this realistic?

Companywide, I really have to think that the way that the two lines of business would grow there. So I think you’ve heard me say this before, really – what do long-term margins look like questions. And I our [gateway] (ph) investors want to think. To me, I think the best thing that we can do is telling you where we are and telling you what the trends are like, because it’s so (indiscernible). So if you could take that couple of hundred thousand subscriber number, you could go higher than that, very different results. And by the way those results are very (indiscernible) how fast or how slow the growth is to get there. I really want to continue to resist it and give you as much transparency in a short-term. And help you kind of take a model going forward and built sensitivity there. Roy Liao – Goudy Park Capital: Okay. But it’s safe to assume that the Ting EBITDA margins are significantly higher than everything else besides Hover, right?

Yes, that’s right. Roy Liao – Goudy Park Capital: Okay, great, thanks. And just wanted to talk about the $300,000 impairment. It sounds like it’s one time in nature. Just want to confirm if that’s the case.

Mike?

Yes, we did as part of the routine process, we do from time to time assess with output. And these were names that are more European names and no longer really had economic value either from an advertising perspective or sales perspective. So we just chose not to renew them, and because we carry that to write it off. But that said, in assessing the balance, I think that there will be any more material write-offs that we will have to take over the next six, twelve months. Roy Liao – Goudy Park Capital: Okay, great. And just wanted to talk about currency a bit. I know in the last call you guys said about $13 million to $13.5 million EBITDA guidance and not accounting for any currency benefits. Given your updated guidance, do you kind of expect that there may be some upside to that EBITDA number given any changes in currency swings?

So what I was talking about last year, if you remember the way that we were protecting, all of the benefits of that currency are 2015 benefit. So our needs for 2014 are lost in and have been for a long time. What I want to make sure (indiscernible) to the folks, as people started to look at 2015 numbers going forward, was that we are going to go into 2015 with a bit of a tailwind. Roy Liao – Goudy Park Capital: Okay, sounds great. And just last thing for me. You just mentioned you talked about the .group’s resolutions. Is it safe to say that your remaining three interest (indiscernible) these could be a little bit more significant than .group, if you choose to not win the bet and kind of the bid price back.

Yes. So I think I would say…

So first of all I was really trying to stress that this could go any which way with all of these things. We’re interested in all of the enterprise. And so, just its operating and therefore using some capital there, right. And as Hubert mentioned, there’s some capital to use. And the second thing is the different mix of applicants and there’s a different sort of a different ownership in each of those applications. So it’s really, really tough to generally (indiscernible) my preference it would be $3 up right. Roy Liao – Goudy Park Capital: Okay, great, thanks. And thanks again for having a great quarter.

Thank you.

There are no further questions at this time. I will turn the call back over to you, Mr. Noss for closing remarks.

Thank you. And I look forward to speaking with you all again next quarter. Thank you, operator.