Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q3 FY2005 Earnings Presentation
18 slides from Internet Initiative Japan's earnings presentation, Feb 10, 2006
Slide 1: Third Quarter Results for the Year Ending March 31, 2006
Third Quarter Results for the Year Ending March 31, 2006 Internet Initiative Japan Inc. February 10, 2006 * Figures in the consolidated financial statements for FY2003 and FY2004 and historical quarterly figures from 1Q03 to 3Q04 have been restated to reflect the change in income tax expense (benefi
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: Consolidated Results for the Third Quarter of FY2005
Network Initiative Consolidated Results for the Third Quarter of FY2005 - Increased revenues and profits from 3Q04 - Increased sales of higher-margin services, including outsourced operations in 3 Months Systems Integration (“SI”), value-added services (“VAS”) and other services Ended - Revenues: JP
Slide 4: Consolidated Results for 3 Months Ended December 31, 2005
Network Initiative Consolidated Results for 3 Months Ended December 31, 2005 YoY 3Q05 (2005/10-12) 3Q04 (2004/10-12) Change JPY million % of Total JPY million % of Total % Revenues Revenues Revenues 11,870 100.0% 10,261 100.0% 115.7% Total Cost 9,652 81.3% 8,486 82.7% 113.7% Gross Margin 2,218 18.7%
Slide 5: Consolidated Results for 9 Months Ended December 31, 2005
Network Initiative Consolidated Results for 9 Months Ended December 31, 2005 YoY 1Q05-3Q05 (2005/4-12) 1Q04-3Q04 (2004/4-12) Change JPY million % of Total JPY million % of Total % Revenues Revenues Revenues 33,679 100.0% 29,448 100.0% 114.4% Total Cost 27,642 82.1% 24,782 84.2% 111.5% Gross Margin 6
Slide 6: Trend of Consolidated Quarterly Revenues
Network Initiative Trend of Consolidated Quarterly Revenues (JPY million) 15,000 Equipment Sales SI (except Outsourced Operation) Outsourced Operation 12,254 11,870 VAS and other Revenues 11,929 Internet Connectivity Services 1,042 1,000 769 10,512 10,261 9,880 10,000 1,166 625 2,786 2,440 273 2,405
Slide 7: Trend of Quarterly Operating and Net Income (Loss)
Network Initiative Trend of Quarterly Operating and Net Income (Loss) (JPY million) (%) 2,500 Operating Income (Loss) 10 - Gain on sale of available- available-for- for-sale 2,256 Net Income (Loss) securities Operating Margin Ratio 2,000 (JPY million) 1,890 7.5 2,000 1,500 1,500 5.4% 5.8 1,000 743 1
Slide 8: Trend of Consolidated Gross Margin
Network Initiative Trend of Consolidated Gross Margin Nine months Ended December 2004 Nine months Ended December 2005 2.1% 3.7% 50.0% 46.3% 39.5% 58.4% Internet Connectivity and VAS System s Integration Equipm ent Sales (JPY million) 9 months ended % of Total 9 months ended % of Total December 31, 2
Slide 9: Results by Service: Internet Connectivity and VAS
Network Initiative Results by Service Internet Connectivity and VAS Total contracted <Revenues and Gross Margin Ratio> bandwidth (Gbps (Gbps)) (JPY million) 6,000 5,860 5,767 5,767 5,841 22% 5,596 5,637 5,633 5,666 5,499 5,450 5,508 151.0 185.5 5,000 140.9 14.4% 13.9% 13.5% 13.8% 4,000 13.4% 13.2% 1
Slide 10: Results by Service: SI and Outsourcing
Network Initiative Results by Service SI <Trend of Revenues and Gross Margin Ratio> (JPY million) 6,000 Other than outsourced operations 30% - Revenues from one- one-time SI projects such as systems Outsourced operations Gross margin ratio 5,352 5,261 design and implementation increased 5,162 5,000
Slide 11: Target for FY2005 Consolidated Results
Network Initiative Target for FY2005 Consolidated Results ・Revenues for FY2005 are expected to increase to JPY 48,000 million, a 3.6% increase from the target we announced in the interim report due to a steady increase in outsourcing services and SI projects. ・Net income is expected to increase 18.9
Slide 12: IIJ Quarantine Network Solution
Network Initiative TOPIC IIJ Quarantine Network Solution On November 8, 2005, IIJ released the IIJ Quarantine Network Solution*, a service that creates a secure corporate LAN network by automatically detecting and isolating improperly secured PCs that are connected to a network. <<Features>> * Non-c
Slide 13: IIJ DDoS Solution Service
Network Initiative TOPICS IIJ DDoS Solution Service In December, 2005, IIJ released the IIJ DDoS Solution Service for detecting and protecting corporate servers and networks from distributed denial of service (DDoS) attacks*. <<Features>> * The DDoS defense system is installed on the backbone to pro
Slide 14: IIJ provides SMF and IIJ SMF Service on an OEM Basis
Network Initiative IIJ provides SMF and IIJ SMF Service on TOPICS an OEM Basis IIJ released the SEIL technology to Oki Electric Industry (Oki) and IIJ SMF Service* to NTT Communications Corporation (NTT Com) on an OEM basis. Oki uses SMF as a function of BB MediaRouter, NTT Com applies the IIJ SMF S
Slide 15: IIJ Internet-LAN Service
Network Initiative TOPIC IIJ Internet-LAN Service On October 11, 2005, IIJ released the IIJ Internet-LAN Service*, a service that uses broadband access lines, such as NTT's FLET's, to create a low- cost and maintenance-free broadband Ethernet WAN. <<Features>> * Easily creates a broadband Ethernet W
Slide 16: A Joint Venture Company with Konami, to operate Comprehensive Portal Sites
Network Initiative A Joint Venture Company with Konami, TOPIC to operate Comprehensive Portal Sites IIJ and Konami established "i-revo“, to provide portal sites in Japan. The venture merges Konami's expertise in developing digital entertainment content and IIJ's highly cultivated and reliable techno
Slide 17: IIJ Ranks No.1 in Customer Satisfaction
Network Initiative TOPIC #1 Ranking in Customer Satisfaction for Network Services J.D. Power Asia Pacific 2005 Japan Network Service Provider Satisfaction StudySM IIJ Ranks No.1 in Customer Satisfaction < Six Factors Influencing Total Customer < Customer Satisfaction Score > Satisfaction and their I
Slide 18: Major Press Releases
Network Initiative TOPIC Major Press Releases Date Subject 2006/1/30 IIJ to Provide IIJ SMF Service to NTT Com on OEM Basis - OCN to offer OCN-SMF Service using proprietary IIJ technology - Konami and IIJ will Establish a Joint Venture Company, to operate Comprehensive 2006/1/19 Portal Sites - Agree
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