Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q1 FY2006 Earnings Presentation
15 slides from Internet Initiative Japan's earnings presentation, Aug 9, 2006
Slide 1: Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2007
Internet Initiative Japan Inc. Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2007 Internet Initiative Japan Inc. August 9, 2006 * Historical quarterly figures from 1Q04 to 3Q04 have been restated to reflect the change in income tax expense (benefit) previously
Slide 2: Forward-looking Statements
Network Initiative Forward-looking Statements Statements made in this press release regarding IIJ's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements that are based on IIJ's and managements' current expectations, assumptions, estimates an
Slide 3: Summary of Financial Results in 1Q06
Network Initiative Summary of Financial Results in 1Q06 Favorable start to FY2006: - Both revenues and operating income increased significantly compared to 1Q05, despite the fact that our first quarter is historically weakest due to seasonal fluctuations in Japanese corporate spending - The strong q
Slide 4: Financial Results in 1Q06
Network Initiative Financial Results in 1Q06 (Unit: JPY million) 1Q06 1Q05 QoQ (2006/4-2006/6) (2005/4-2005/6) Change % of Total % of Total % (JPY million) Results Revenues Results Revenues Total Revenues 12,437 100.0% 9,880 100.0% +25.9% Total Costs 10,134 81.5% 8,118 82.2% +24.8% Gross Margin 2,30
Slide 5: Trend of Quarterly Revenues
Network Initiative Trend of Quarterly Revenues VAS and other Revenues Systems Integration Equipment Sales Internet Connectivity Services Outsourced Operation Gross Margin Ratio (JPY million) 18.5% 18.3% 18.7% 17.1% 15,000 17.8% 17.3% 17.2% 15.8% 14.2% revenues One-time 10,000 Recurring revenues 5,00
Slide 6: Trend of Quarterly Operating and Net Income (Loss)
Network Initiative Trend of Quarterly Operating and Net Income (Loss) (JPY million) Operating Income Net Income Operating <Operating Income> Margin Ratio 2,500 - Increased by 126.6% compared to 5.8% 6.0% 1Q05 due to a steady increase in revenues from outsourcing services. 5.4% - The operating margin
Slide 7: Results by Service: Internet Connectivity and VAS
Network Initiative Results by Service Internet Connectivity and VAS < Trend of Revenues and Gross Margin Ratio> Contracted Bandwidth (JPY Million) (Gbps) 6,000 5,860 5,767 5,767 5,841 5,849 5,864 20% 5,666 5,450 5,508 225.4 5,000 185.5 194.9 14.0% 14.4% 13.2% 13.9% 13.5% 13.8% 13.5% 13.0% 4,000 151.
Slide 8: Results by Service: Systems Integration (SI)
Network Initiative Results by Service Systems Integration (SI) <Trend of Revenues and Gross Margin Ratio> (JPY million) 10,000 Systems integration 30% z Despite the fact that our first quarter is historically weakest due to Outsourced operation seasonal fluctuations in Japanese corporate spending, r
Slide 9: Balance Sheets and Cash Flows in 1Q06
Network Initiative Balance Sheets and Cash Flows in 1Q06 (Unit: JPY million) <Balance Sheets> June 30, 2006 June 30, 2005 Change % Cash 13,091 13,727 (636) Available-for-sale Securities 4,288 6,775 (2,487) Long/short-term Borrowings 6,970 6,835 135 Common Stock 16,834 16,834 － Additional Paid- in Ca
Slide 10: Other Financial Data in 1Q06
Network Initiative Other Financial Data in 1Q06 (Unit: JPY million) 1Q06 1Q05 Change % CAPEX 842 533 +57.9％ Deprecation and Amortization 1,107 1,014 +9.2％ Adjusted EBITDA 1,666 1,261 +32.2％ Copyright © 2006 Internet Initiative Japan Inc. 9
Slide 11: Target for FY2006 Results
Network Initiative Target for FY2006 Results Actual Results for YoY Actual Results for Three Months Ended Target for FY2006 FY2005 Change June 30, 2006 % Revenues 12,437 55,000 49,813 +10.4% Operating Income 559 3,200 2,411 +32.7% Income before Income Tax 999 6,300 5,379 +17.1% Expense Net Income 73
Slide 12: IIJ Began to Provide "IIJ Managed VPN PRO"
Network Initiative TOPICS IIJ Began to Provide “IIJ Managed VPN PRO” IIJ began to provide “IIJ Managed VPN PRO”, a new Internet-based VPN service that will offer a high level of flexibility through IIJ’s SEIL routers. IIJ Managed VPN PRO Feature Highlights Percentage of corporate users using Interne
Slide 13: IIJ Added New Features for Network/Security Services
Network Initiative TOPICS IIJ Added New Features for Network/Security Services IIJ Group Added a New Feature to Automatically Detect and Remove IIJ Expands Access Lines for IIJ the Winny File Sharing Program on Internet-LAN Service IIJ Quarantine Network Solution - IIJ Quarantine Network Solution cr
Slide 14: Elimination of Accumulated Deficit
Network Initiative Elimination of Accumulated Deficit At the Ordinary General Shareholders’ Meeting held on June 28, 2006, the reductions of the Company’s additional paid-in capital and common stock were resolved and became effective on August 4, 2006. The details of the reductions are as follows: A
Slide 15: Major Press Releases
Network Initiative Major Press Releases Date Headlines IIJ Adds Features and Broader Network Compatibility to IIJ SMF Service 2006/8/1 SMF now compatible with closed-network services on all carriers as well as ISP services of Yahoo!BB, CATV and others IIJ Delivers Intrusion Prevention via IIJ Manage
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