Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q1 FY2005 Earnings Presentation
13 slides from Internet Initiative Japan's earnings presentation, Aug 12, 2005
Slide 1: First Quarter Results for the Year Ending March 31, 2006
Internet Initiative Japan Inc. First Quarter Results for the Year Ending March 31, 2006 Internet Initiative Japan Inc. August 12, 2005 * Historical quarterly figures from 1Q03 to 3Q04 have been restated to reflect the change in income tax expense (benefit) previously discussed by IIJ in its press re
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: 1Q05 Result Summary
Network Initiative 1Q05 Result Summary Achieved positive operating and net income in 1Q05, despite the fact that the first quarter has historically been our weakest quarter due to seasonal fluctuation of systems integration (“SI”) - First time since NASDAQ listing in 1999 - Smooth start to achieving
Slide 4: Consolidated Results for 1Q05
Network Initiative Consolidated Results for 1Q05 1Q04（2004/4-6） 1Q05（2005/4-6） YoY Change % of Total % of Total JPY million Revenues JPY million Revenues % • Higher-margin revenue from Revenue 8,675 100.0% 9,880 100.0% 13.9% outsourcing services, such as from VAS and SI continued to grow steadily •
Slide 5: Trend of Quarterly Revenues and Gross Margin
Network Initiative Trend of Quarterly Revenues and Gross Margin (JPY million) 1 5 ,0 0 0 30% Connectivity and VAS Gross Margin SI Gross Margin 24.7% 24.2% 23.9% 23.7% 23.7% 22.3% 12,254 11,617 20.0% 10,261 % of Total Revenues in1Q05 9,880 1 0 ,0 0 0 9,185 9,633 10,512 20% 2.8% Equipment Sales 8,344
Slide 6: Trend of Quarterly Operating and Net Income (Loss)
Network Initiative Trend of Quarterly Operating and Net Income (Loss) (JPY million) (%) 2 ,0 0 0 2,256 10 1,693 Operating Income Net Income 8 1 ,5 0 0 Operating Margin 5.4% 6 1 ,0 0 0 4.0% 3.0% 2.7% 660 656 2.5% 623 4 2.4% 410 500 350 236 282 229 247 2 0 0 -100 -236 -238 -2 -500 -1.2% -4 -830 - 1 ,0
Slide 7: Factors affecting changes in operating income
Network Initiative Factors affecting changes in operating income Decrease in gross margin from +164 equipment sales (JPY million) Increase in Expenses for gross the preparation margin - 25 Increase in for and personnel Advertising termination of from expenses expenses Japan listing Internet connecti
Slide 8: Results by Service
Network Initiative Results by Service (JPY million) (Gbps) 4500 140.9 Internet Connectivity Service 4,089 4,020 140 3,984 3,858 4000 768 784 3,670 3,572 3,559 z Revenue decreased due to network review by 780 3,508 3,446 120 3500 758 some major customers, and pricing discounts 752 727 718 3000 3,321
Slide 9: Results by Service
Network Initiative Results by Service (JPY million) 6000 Revenues from operational outsourcing services5,352 Systems Integration（SI） 5000 Revenues from services other than operational z 1Q is the weakest quarter of the fiscal year due outsourcing 4,001 3,970 to seasonal fluctuations of corporate inv
Slide 10: IIJ ADS Ratio Change and Stock Split
Network Initiative TOPIC IIJ ADS Ratio Change and Stock Split We will change in the ratio of its American Depositary Shares ("ADSs") to the shares of common stock of IIJ ("Shares") from 1 ADS = 1 / 2,000 of a Share to 1 ADS = 1 / 400 of a Share. We will also do a 1 to 5 stock split of Shares. The ra
Slide 11: IIJ Group Corporate Reorganization
Network Initiative TOPIC IIJ Group Corporate Reorganization IIJ will reorganize its businesses to meet customer needs and to reinforce the Company’s focus and efficiency. We will maintain the targets for FY2005 revenue and profitability. Asia Internet Holding IIJ Media Communications Inc. IIJ Media
Slide 12: Corporate Governance
Network Initiative TOPIC Corporate Governance Two more outside directors has been newly assigned to strengthen and enhance corporate governance. Newly appointed outside directors (June 29, 2005) ： Yoshifumi Nishikawa- Sumitomo Mitsui Banking Corporation Advisor Junnosuke Furukawa- The Furukawa Elect
Slide 13: Major Business Developments
Network Initiative TOPIC Major Business Developments Date Subject IIJ, IIJ-Tech, and HP Japan Form Alliance to Deliver RFID (Radio Frequency August 1 Identification Tag) Platform - Commercialization of the RFID Platform for Intercompany and International Logistics Using the Internet for Global, Real
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