Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — FY2003 Earnings Presentation
9 slides from Internet Initiative Japan's earnings presentation, May 14, 2004
Slide 1: Fourth Quarter and Full Fiscal Year Results for the Year Ending March 31, 2004
Internet Initiative Japan Inc. Fourth Quarter and Full Fiscal Year Results for the Year Ending March 31, 2004 May 14, 2004 Statements made in this material with respect to IIJ's plans, objectives, strategies, intentions, beliefs, predictions and other statements that are not historical facts are for
Slide 2: Highlights of fourth quarter FY2003 results
Highlights of fourth quarter FY2003 results Revenues: JPY 11,617 million ($ 111.5 million*), 20.6% increase QoQ. A 10.9% decrease YoY. Operating income: JPY 350 million ($ 3.4 million), 48.3% increase QoQ. A turnaround from an operating loss of JPY 446 million in 4Q02. - Operating income continued t
Slide 3: Highlights of full FY2003 results
Highlights of full FY2003 results Revenues: JPY 39 billion ($ 372.2 million), 11.9% decrease YoY. - The decrease largely reflects the first half of FY2003 decline in SI service and equipment sales revenues. These were adversely affected by weak Japanese corporate investment. Operating loss: JPY 1.4
Slide 4: Outlook for FY2004
Outlook for FY2004 We expect yearly operating income and net income to turn positive in FY2004 - We believe that our strategy in the second half of FY2003 has successfully countered the negative impact of Crosswave’s commencement of corporate reorganization. - We believe we are now firmly positioned
Slide 5: Revenue Growth (Quarterly)
Revenue Growth (Quarterly) (JPY Millions) Internet Systems Value Added Others Connectivity Integration Services 13,036 12,110 11,617 10,568 10,564 9,934 9,849 9,529 9,634 9,185 8,333 8,344 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2001 2002 2003 5
Slide 6: Operating and Net Income (Loss)
Operating and Net Income (Loss) Operating Income (Loss) Net Income (Loss) (JPY Millions) (JPY Millions) 350 350 669 150 500 -50 -1500 -250 -3500 -450 -650 -5500 -850 -7500 -1050 -9500 -1250 1Q02 2Q 3Q 4Q 1Q03 2Q 3Q 4Q 1Q02 2Q 3Q 4Q 1Q03 2Q 3Q 4Q 6
Slide 7: Connectivity and VAS
Connectivity and VAS High gross margin maintained due to Revenues and Gross Margin increased revenue from VAS and (JPY millions) reduction of Internet backbone costs 7000 16 4Q03 revenues increased by 1.5% YoY due to Gross Margin Ratio increased revenue from VAS. Slight decrease 6000 14 of 2.4% QoQ.
Slide 8: Systems Integration
Systems Integration Gross margins have been maintained at Revenues and Gross Margin high levels (JPY millions) 4Q03 SI revenues increased 38.5% QoQ. 6000 Gross Margin Ratio SI revenue is steadily improving along with Japanese corporate IT investment, however it did not reach the same level of FY2002
Slide 9: Financial Results (Unaudited)
Financial Results (Unaudited) (JPY Millions) Statements of Operation 1Q03 2Q03 3Q03 4Q03 FY2003 Total revenues 8,344 9,185 9,633 11,617 38,779 Total costs 7,868 8,337 8,125 9,915 34,245 Sales and marketing 973 1,100 699 756 3,527 General and administrative 612 482 486 518 2,098 Research and developm
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