Benzinga | Feb 10, 2021 06:26AM EST

Tucows Initiates $40M Stock Buyback Following Dismal Q4 Earnings

* Toronto's Tucows Inc. (NASDAQ: TCX) announced a share buyback program of $40 million to commence from February 10, 2021, and expire by February 9, 2022.

* The previous $40 million buyback program between February 13, 2020, and February 12, 2021, has concluded. Tucows had 10.615 million shares outstanding as of February 8, 2021.

* The company's net revenue for the fourth quarter of FY20 declined 18% year-on-year to $70.8 million following the sale of its Ting Mobile customer relationships to DISH Network Corp (NASDAQ: DISH).

* The gross profit declined 33% to $17.4 million. As a result, the net income fell 64% to $2.1 million, translating into an EPS of $0.19.

* Cash and cash equivalents declined from $20.4 million to $8.3 million, and operating cash flow declined from $13.2 million to $1.6 million.

* Price action: TCX shares closed lower by 6.69% at $83.74 yesterday.