Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q2 FY2005 Earnings Presentation
14 slides from Internet Initiative Japan's earnings presentation, Nov 9, 2005
Slide 1: Second Quarter Results for the Year Ending March 31, 2006
Second Quarter Results for the Year Ending March 31, 2006 Internet Initiative Japan Inc. November 9, 2005 * Figures in the first half of FY2004 and historical quarterly figures from 1Q03 to 3Q04 have been restated 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: Consolidated Results for the 1st Half of FY2005
Network Initiative Consolidated Results for the 1st Half of FY2005 Achieved our initial target for the 1st half of FY2005 ● Revenues: JPY 21,809 billion (+13.7% compared to 1H04, +9.2% compared to our initial target) ‐ Revenues from outsourced operations 1st Half of JPY 10,114 billion FY2005 (+42.3%
Slide 4: Consolidated Results for the 1st Half of FY2005
Network Initiative Consolidated Results for the 1st Half of FY2005 1st Half of FY2005 1st Half of FY2004 YoY (2005/4-2005/9) (2004/4-2004/9) Change JPY million % of Total JPY million % of Total % Revenues Revenues Revenues 21,809 100.0% 19,187 100.0% 13.7% Total Cost 17,991 82.5% 16,297 84.9% 10.4%
Slide 5: Consolidated Results for the 2nd Quarter of FY2005
Network Initiative Consolidated Results for the 2nd Quarter of FY2005 Revenues and profits increased significantly from 2Q04 and 1Q05 due to a steady increase of revenues from systems integration and value- added services (VAS) ● Revenues: 11,929 billion 2nd Quarter (+13.5% compared to 2Q04, of FY20
Slide 6: Consolidated Results for the 2nd Quarter of FY2005
Network Initiative Consolidated Results for the 2nd Quarter of FY2005 YoY 2Q05 (2005/7-9) 2Q04 (2004/7-9) Change JPY million % of Total JPY million % of Total % Revenues Revenues Revenues 11,929 100.0% 10,512 100.0% 13.5% Improved 1.4 percentage points in spite of increases in outsourced Total Cost
Slide 7: Revenues and Gross Margin for the 2nd Quarter
Network Initiative Revenues and Gross Margin for the 2nd Quarter <Revenues> <Gross Margin> 8.4% 1.7% 43.3% 37.9% 48.3% 60.4% Internet Connectivity and VAS Systems Integration (JPY million) Equipment Sales % of Total % of Total Revenues Revenues Gross Margin Revenues Internet Connectivity and VAS 5,7
Slide 8: Trend of Consolidated Quarterly Revenues
Network Initiative Trend of Consolidated Quarterly Revenues (JPY million) 15,000 12,254 11,929 1,042 1,000 10,512 10,261 9,880 10,000 1,166 625 2,786 273 2,405 8,675 1,193 1,672 531 2,101 1,040 2,566 2,647 2,757 2,298 1,655 1,737 5,000 1,779 1,936 2,158 2,301 2,321 2,389 Equipment Sales Systems Inte
Slide 9: Trend of Quarterly Operating and Net Income (Loss)
Network Initiative Trend of Quarterly Operating and Net Income (Loss) (JPY million) (%) 2,256 2000 10 Operating Income(Loss) - Gain on sale of available-for-sale securities Net Income(Loss) (JPY million) Operating Margin Ratio 1,890 1500 7.5 2,000 1,500 5.4% 1,001 1,000 1000 5 660 4.0% 4.3% 550 511
Slide 10: Results by Service: Internet Connectivity and VAS
Network Initiative Results by Service （百万円） Internet Connectivity and VAS (JPY million) <Revenues and Gross Margin Ratio> 6,000 5,596 5,637 5,633 5,499 5,666 5,860 5,767 5,767 20% - Number of contracts of dedicated lines : 12,702 5,450 5,508 (+3,822 (43.0%) from 2Q04, +428 (3.5%) from 1Q05) 5,000 14
Slide 11: Results by Service: Systems Integration
Network Initiative Results by Service Systems Integration (SI) <Trend of Revenues and Gross Margin Ratio> (JPY million) Other than outsourced operations - Increased substantially by 34.5% from 2Q04 due to an 6,000 Outsourced oprerations 30% increase of revenues from SI developments and an Gross marg
Slide 12: Outlook for FY2005
Network Initiative Outlook for FY2005 ・ In the first half of FY2005 we achieved our initial target ・ We will maintain our target for full FY2005 considering results in the latter half (especially the fourth quarter) will have substantial effect on full FY compared to the first half due to the season
Slide 13: Stock Split, Reorganization of IIJ group
Network Initiative TOPIC Stock Split, Reorganization of IIJ group Stock Split and Ratio Change of IIJ Group Reorganization American Depositary Shares (ADSs) We split 1 common share into 5 to reduce the IIJ reorganized its businesses within the stock price per investment unit. We changed Group to rei
Slide 14: Major Press Releases
Network Initiative TOPIC Major Press Releases Date Subject IIJ-Tech Launches IBPS Database Security Assessment Service 10/20 - New security consulting service assesses vulnerability of corporate databases and identifies risks of information leaks and tampering before they happen - IIJ Provides SMF T
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