EXHIBIT 99.1
TOKYO, Feb. 10, 2015 (GLOBE NEWSWIRE) -- Internet Initiative Japan Inc. ("IIJ") (Nasdaq:IIJI) (TSE:3774) today announced its consolidated financial results for the nine months of the fiscal year ending March 31, 2015 (from April 1, 2014 to December 31, 2014, "3Q14").1
| Highlights of Financial Results for 3Q14 | ||
| Revenues | JPY87,846 million | (up 6.2% YoY) |
| Operating Income | JPY3,786 million | (down 10.1% YoY) |
| Income before Income Tax Expense | JPY3,889 million | (down 15.9% YoY) |
| Net Income attributable to IIJ | JPY2,314 million | (down 20.9% YoY) |
| Highlights of Financial Results for Three Months Ended December 31, 2014 | ||
| Revenues | JPY30,674 million | (up 8.2% YoY) |
| Operating Income | JPY1,370 million | (up 14.0% YoY) |
| Income before Income Tax Expense | JPY1,397 million | (up 9.3% YoY) |
| Net Income attributable to IIJ | JPY870 million | (up 20.9% YoY) |
Overview of 3Q14 Financial Results and Business Outlook
"We achieved operating income increase in this third quarter as planned with the continuous accumulation of stock revenues, which absorbed last fiscal year's negative impact from three large customers' stock revenues decrease and operating cost increase mainly related to personnel and outsourcing from the beginning of the fiscal year. MVNO2 services, which we started to invest in seven years ago, contributed to the revenues accumulation significantly. As a growing company, we continuously devote ourselves to service developments and business investments to stay ahead. This continues to be our core for further business scale-up," said Koichi Suzuki, Founder and CEO of IIJ.
"Consumer MVNO led the 3Q revenues growth significantly. In this three-month period, the net addition of subscription more than doubled from the previous quarter and the revenues grew by almost three times from last fiscal year's third quarter. As the first MVNO to use NTT DoCoMo's network, we believe we're well positioned to capture rapidly expanding consumer MVNO market with our high customer satisfaction3. Although consumer MVNO market is very hot, we strongly focus on enterprises as well. We're seeing great market opportunity for M2M4 and MVNE5 transactions to which we can leverage our blue-chip customer base and SI skills. We cover Panasonic's MVNE transaction and related system construction to connect their products to wireless network6, and began to offer our network platform to several MVNOs including many of CATV operators. By gathering consumer and enterprise traffic, we aim to improve our mobile network infrastructure efficiency in pursuing greater utilization of our MVNO infrastructure," followed Eijiro Katsu, COO and President of IIJ.
"With regard to our six-year-old Cloud services, although it's taking time for Japanese companies to fully adopt, the usage of Cloud services is penetrating surely and gradually. Our prominent cases include a unified group communication platform for Sompo Japan Nipponkoa7, systems to prevent unauthorized online banking remittance for a major commercial bank8, and full-scale Cloud migration of core business operation platform for Nippon Express and others. We continue to target the private Cloud market with our public Cloud infrastructure with wide range of value-added services features we developed," continued Katsu.
"3Q14 financial results work as a mid-way check point to our business progress. Now that we returned to operating income increase from this 3Q as planned, we expect further growth by leveraging our business investments," concluded Katsu.
1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with U.S. GAAP. The figures are unaudited, and consolidated.
2 MVNO: Mobile Virtual Network Operator
3 According to a survey conducted by Mobile Marketing Data Labo. in February 2014 and others
4 M2M: Machine to Machine
5 MVNE: Mobile Virtual Network Enabler
6 IIJ supports Panasonic Corporation's entry to MVNO business, as announced on October 15. For more information, please see http://www.iij.ad.jp/en/news/pressrelease/2014/1015.html
7 For more information, please see http://www.iij.ad.jp/en/news/pressrelease/2013/0704.html
8 For more information, please see http://www.iij.ad.jp/en/news/pressrelease/2014/1225.html
3Q14 Financial Results Summary
| Operating Results Summary | |||
| 3Q13 | 3Q14 | YoY % Change | |
| JPY millions | JPY millions | ||
| Total Revenues | 82,746 | 87,846 | 6.2 |
| Network Services | 50,301 | 51,162 | 1.7 |
| Systems Integration (SI) | 29,197 | 32,644 | 11.8 |
| Equipment Sales | 1,178 | 1,366 | 15.9 |
| ATM Operation Business | 2,070 | 2,674 | 29.2 |
| Total Costs | 67,228 | 71,398 | 6.2 |
| Network Services | 39,764 | 40,131 | 0.9 |
| Systems Integration (SI) | 24,826 | 28,179 | 13.5 |
| Equipment Sales | 1,062 | 1,197 | 12.7 |
| ATM Operation Business | 1,576 | 1,891 | 20.0 |
| SG&A Expenses and R&D | 11,307 | 12,662 | 12.0 |
| Operating Income | 4,211 | 3,786 | (10.1) |
| Income before Income Tax Expense | 4,625 | 3,889 | (15.9) |
| Net Income attributable to IIJ | 2,924 | 2,314 | (20.9) |
| Segment Results Summary | ||
| 3Q13 | 3Q14 | |
| JPY millions | JPY millions | |
| Total Revenues | 82,746 | 87,846 |
| Network services and SI business | 81,029 | 85,478 |
| ATM Operation Business | 2,070 | 2,674 |
| Elimination | 353 | 306 |
| Operating Income | 4,211 | 3,786 |
| Network service and SI business | 3,899 | 3,232 |
| ATM Operation Business | 400 | 654 |
| Elimination | 88 | 100 |
We have omitted segment analysis because most of our revenues are dominated by Network services and Systems Integration (SI) business.
3Q14 Results of Operation
Revenues
Total revenues were JPY87,846 million, up 6.2% YoY.
Network Services revenue was JPY51,162 million, up 1.7% YoY.
Revenues for Internet connectivity services for enterprise were JPY12,288 million, down 1.7% YoY from JPY12,499 million for 3Q13. While enterprise mobile service revenues continued to increase, IP services revenues including data center connectivity decreased.
Revenues for Internet connectivity services for consumer were JPY5,753 million, up 30.8% YoY from JPY4,397 million for 3Q13, mainly due to the rapid revenue growth of consumer mobile services "IIJmio High-speed Mobile/D service," consumer mobile services which offers inexpensive data communication and voice services with SIM cards. The number of subscriptions of them at the end of 3Q14 was 339 thousand, increased largely by 94 thousand from the end of 2Q14. The numbers of subscriptions at the end of 2Q14 and 1Q14 were 245 thousand and 205 thousand respectively, for your reference.
WAN services revenues were JPY18,145 million, down 3.4% YoY compared to 18,786 million for 3Q13.
Outsourcing services revenues were JPY14,976 million, up 2.4% YoY from JPY14,619 million for 3Q13, mainly by the increase in revenues of "IIJ GIO Hosting Package Services."
| Network Services9 Revenues Breakdown | |||
| 3Q13 | 3Q14 | YoY % Change | |
| JPY millions | JPY millions | ||
| Internet Connectivity Service (Enterprise) | 12,499 | 12,288 | (1.7) |
| IP Service10 | 7,818 | 7,425 | (5.0) |
| IIJ FiberAccess/F and IIJ DSL/F | 2,368 | 2,366 | (0.1) |
| IIJ Mobile Service (Enterprise) | 2,141 | 2,324 | 8.5 |
| Others | 172 | 173 | 0.3 |
| Internet Connectivity Service (Consumer) | 4,397 | 5,753 | 30.8 |
| Under IIJ Brand | 1,577 | 3,142 | 99.3 |
| hi-ho | 2,297 | 2,114 | (8.0) |
| OEM | 523 | 497 | (4.9) |
| WAN Services | 18,786 | 18,145 | (3.4) |
| Outsourcing Services | 14,619 | 14,976 | 2.4 |
| Total Network Services | 50,301 | 51,162 | 1.7 |
| Number of Contracts for Connectivity Services | |||
| as of Dec 31, 2013 | as of Dec 31, 2014 | YoY Change | |
| Internet Connectivity Services (Enterprise) | 128,635 | 165,319 | 36,684 |
| IP Service (-99Mbps) | 873 | 796 | (77) |
| IP Service (100Mbps-999Mbps) | 434 | 491 | 57 |
| IP Service (1Gbps-) | 263 | 330 | 67 |
| IIJ Data Center Connectivity Service | 293 | 280 | (13) |
| IIJ FiberAccess/F and IIJ DSL/F | 53,536 | 61,346 | 7,810 |
| IIJ Mobile Service (Enterprise) | 71,940 | 100,750 | 28,810 |
| Others | 1,296 | 1,326 | 30 |
| Internet Connectivity Services (Consumer) | 596,458 | 794,706 | 198,248 |
| Under IIJ Brand | 152,191 | 306,253 | 154,062 |
| hi-ho | 157,087 | 151,857 | (5,230) |
| OEM | 287,180 | 336,596 | 49,416 |
| Total Contracted Bandwidth | 1,501.8Gbps | 1,705.6Gbps | 203.8Gbps |
9 We have renamed Internet Connectivity Service (for Corporate Use) and Internet Connectivity Service (for home use) to Internet Connectivity Service (Enterprise) and Internet Connectivity Service (Consumer), respectively in June 2014.
10 IP Service revenues include revenues from the Data Center Connectivity Service.
SI revenues were JPY32,644 million, up 11.8% YoY.
Systems construction revenue, a one-time revenue, was JPY12,494 million, up 7.4% YoY. Revenue increased largely due to the increase in the scale of systems construction projects. Systems operation and maintenance revenue, a recurring revenue, was JPY20,150 million, up 14.7% YoY. "IIJ GIO Component Services" revenues increased and systems construction projects that were completed and shifted to operation and maintenance phase contributed to revenue increase of systems operation and maintenance.
Orders received for SI and equipment sales totaled JPY40,388 million, up 11.7% YoY, orders received for systems construction and equipment sales were JPY16,376 million, up 0.9% YoY and orders received for systems operation and maintenance were JPY24,013 million, up 20.5% YoY.
Order backlog for SI and equipment sales as of December 31, 2014 amounted to JPY30,687 million, up 18.7% YoY, order backlog for systems construction and equipment sales was JPY7,619 million, up 6.9% YoY and order backlog for systems operation and maintenance was JPY23,068 million, up 23.1% YoY.
Equipment sales revenues were JPY1,366 million, up 15.9% YoY.
ATM Operation Business revenues were JPY2,674 million, up 29.2% YoY. As of February 10, 2015, 1,048 ATMs are in operation (785 ATMs as of February 7, 2014).
Cost and expense
Total cost of revenues was JPY71,398 million, up 6.2% YoY.
Cost of Network Services revenue was JPY40,131 million, up 0.9% YoY. While network related costs decreased along with the decrease in WAN services revenues, outsourcing costs, network operation costs and personnel-related costs increased. Gross margin was JPY11,031 million, up 4.7% YoY and gross margin ratio was 21.6%.
Cost of SI revenues was JPY28,179 million, up 13.5% YoY. The increase was mainly due to the increase in outsourcing-related costs and purchasing costs. Gross margin was JPY4,465 million, up 2.2% YoY and gross margin ratio was 13.7%.
Cost of Equipment Sales revenues was JPY1,197 million, up 12.7 % YoY. Gross margin was JPY169 million, up 45.7% YoY and gross margin ratio was 12.4%.
Cost of ATM Operation Business revenues was JPY1,891 million, up 20.0% YoY in accordance with the number of newly placed ATMs. Gross margin was JPY783 million, up 58.6% YoY and gross margin ratio was 29.3%.
SG&A and R&D Expenses
SG&A and R&D expenses in total were JPY12,662 million, up 12.0% YoY (JPY11,307 million in 3Q13).
Sales and marketing expenses were JPY6,829 million, up 7.6% YoY. The increase was mainly due to the increase in personnel-related expenses and sales commission expenses.
General and administrative expenses were JPY5,468 million, up 17.7% YoY. The increase was mainly due to the expenses related to headquarter relocation in 1H14.
Research and development expenses were JPY365 million, up 15.5% YoY.
Operating income
Operating income was JPY3,786 million, down 10.1% YoY (JPY4,211 million for 3Q13).
Other income (expenses)
Other income (expenses) was an income of JPY103 million (an income of JPY414 million for 3Q13), as a result of miscellaneous non-operating income such as gain on other investments of JPY176 million, dividend income of JPY59 million and interest expenses of JPY180 million.
Income before Income tax expense
Income before income tax expense was JPY3,889 million, down 15.9% YoY. (JPY4,625 million for 3Q13)
Net Income
Income tax expense was JPY1,633 million (JPY1,841 million for 3Q13).
Equity in net income of equity method investees was JPY115 million (JPY191 million for 3Q13) mainly due to net income of Internet Multifeed Co.and Internet Revolution, Inc.
As a result of the above, net income was JPY2,371 million, down 20.3% YoY (JPY2,975 million for 3Q13).
Net Income attributable to IIJ
Net income attributable to non-controlling interests was JPY57 million mainly related to net income of Trust Networks Inc. (JPY51 million for 3Q13).
Net income attributable to IIJ was JPY2,314 million, down 20.9% YoY (JPY2,924 million for 3Q13).
3Q14 Financial Condition
Balance Sheets
As of December 31, 2014, the balance of total assets was JPY105,829 million, increased by JPY1,962 million from the balance as of March 31, 2014 of JPY103,867 million.
As for current assets as of December 31, 2014, as compared to the respective balances as of March 31, 2014, cash and cash equivalents decreased by JPY1,374 million, mainly related to the repayment of bank borrowings, prepaid expense increased by JPY1,552 million and current portion of guarantee deposits decreased by JPY1,462 million along with our headquarter relocation. As for noncurrent assets, as compared to the respective balance as of March 31, 2014, guarantee deposits increased by JPY1,520 million and property and equipment increased by JPY1,487 million. As for current liabilities, as compared to the respective balances as of March 31, 2014, current portion of long-term borrowings decreased by JPY980 million, accrued expenses increased by JPY858 million and accounts payable decreased by JPY763 million.
As for the balances of capital lease obligations as of December 31, 2014, as compared to the respective balances as of March 31, 2014, capital lease obligations-current portion decreased by JPY156 million to JPY3,597 million and capital lease obligations-noncurrent decreased by JPY257 million to JPY4,346 million.
As of December 31, 2014, the balance of other investments was JPY6,543 million. The breakdown of other investments were JPY4,239 million in available-for-sale securities, JPY2,221 million in nonmarketable equity securities and JPY84 million in other.
As of December 31, 2014, the breakdown of major non-amortized intangible assets were JPY6,170 million in goodwill and JPY107 million in trademark. The balance of amortized intangible assets, which was customer relationships, was JPY3,904 million.
Total IIJ shareholders' equity as of December 31, 2014 compared to the balance as of March 31, 2014, increased by JPY1,352 million to JPY61,264 million. IIJ shareholders' equity ratio (total IIJ shareholders' equity/total assets) as of December 31, 2014 was 57.9%.
Cash Flows
Cash and cash equivalents as of December 31, 2014 were JPY21,047 million compared to JPY22,102 million as of December 31, 2013.
Net cash provided by operating activities for 3Q14 was JPY10,012 million compared to net cash provided by operating activities of JPY5,732 million for 3Q13. The increase was mainly due to the increase in advance receipt mainly related to long-term systems maintenance projects and the increase in operating liabilities, while net income decreased from 3Q13.
Net cash used in investing activities for 3Q14 was JPY6,318 million compared to net cash used in investing activities of JPY8,480 million for 3Q13 mainly due to the payments for purchase of property and equipment of JPY6,569 million (JPY7,228 million for 3Q13).
Net cash used in financing activities for 3Q14 was JPY5,131 million compared to net cash provided by financing activities of JPY12,408 million for 3Q13, mainly due to the principal payments under capital leases of JPY3,140 million (JPY2,942 million for 3Q13), FY2013 year-end and FY2014 interim dividend payments of JPY1,011 million (JPY911 million for 3Q13) and repayments of bank borrowings of JPY980 million (JPY1,010 million for 3Q13).
Prospects for the Fiscal Year Ending March 31, 2015
Our FY2014 financial targets announced on November 7, 2014 remain unchanged.
Due to seasonal factors, our financial results tend to be large in fourth quarter in general.
Reconciliation of Non-GAAP Financial Measures
The following table summarizes the reconciliation of adjusted EBITDA to net income attributable to IIJ in our consolidated statements of income that are prepared in accordance with U.S. GAAP.
| Adjusted EBITDA | ||
| 3Q13 | 3Q14 | |
| JPY millions | JPY millions | |
| Adjusted EBITDA | 10,715 | 11,003 |
| Depreciation and Amortization 11 | 6,504 | 7,217 |
| Operating Income | 4,211 | 3,786 |
| Other Income (Expense) | 414 | 103 |
| Income Tax Expense | 1,841 | 1,633 |
| Equity in Net Income of Equity Method Investees | 191 | 115 |
| Net income | 2,975 | 2,371 |
| Net loss (income) attributable to noncontrolling interests | (51) | (57) |
| Net Income attributable to IIJ | 2,924 | 2,314 |
| CAPEX | ||
| 3Q13 | 3Q14 | |
| JPY millions | JPY millions | |
| CAPEX, including capital leases | 9,863 | 9,290 |
| Acquisition of Assets by Entering into Capital Leases | 2,635 | 2,721 |
| Purchase of Property and Equipment | 7,228 | 6,569 |
11 Depreciation and amortization includes impairment loss on other intangible assets. (See IIJ's consolidated financial statements for details).
Presentation
Presentation materials will be posted on our web site (http://www.iij.ad.jp/en/ir/) on February 10, 2015.
About Internet Initiative Japan Inc.
Founded in 1992, IIJ is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJ and its group of companies provide total network solutions that mainly cater to high-end corporate customers. IIJ's services include high-quality systems integration and security services, Internet access, and cloud computing. Moreover, IIJ has built one of the largest Internet backbone networks in Japan that is connected to the United States, the United Kingdom and Asia. IIJ listed on the U.S. NASDAQ Stock Market in 1999 and on the First Section of the Tokyo Stock Exchange in 2006.
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 and projections about its business and the industry. These forward-looking statements, such as statements regarding FY2014 revenues and operating and net profitability, are subject to various risks, uncertainties and other factors that could cause IIJ's actual results to differ materially from those contained in any forward-looking statement. These risks, uncertainties and other factors include: IIJ's ability to maintain and increase revenues from higher-margin services such as systems integration and outsourcing services; the possibility that revenues from connectivity services may decline substantially as a result of competition and other factors; the ability to compete in a rapidly evolving and competitive marketplace; the impact on IIJ's profits of fluctuations in costs such as backbone costs and subcontractor costs; the impact on IIJ's profits of fluctuations in the price of available-for-sale securities; the impact of technological changes in its industry; IIJ's ability to raise additional capital to cover its indebtedness; the possibility that NTT, IIJ's largest shareholder, may decide to exercise substantial influence over IIJ; and other risks referred to from time to time in IIJ's filings on Form 20-F of its annual report and other filings with the United States Securities and Exchange Commission.
| Internet Initiative Japan Inc. | |||
| Quarterly Consolidated Balance Sheets (Unaudited) | |||
| (As of March 31, 2014 and December 31, 2014) | |||
| As of March 31, 2014 | As of December 31, 2014 | ||
| Thousands of JPY | Thousands of JPY | ||
| ASSETS | |||
| CURRENT ASSETS: | |||
| Cash and cash equivalents | 22,421,100 | 21,047,000 | |
| Accounts receivable, net of allowance for doubtful accounts of JPY 53,871 thousand and JPY 54,890 thousand at March 31, 2014 and December 31, 2014, respectively | 19,214,248 | 17,705,002 | |
| Inventories | 1,670,258 | 2,308,634 | |
| Prepaid expenses | 3,128,290 | 4,679,834 | |
| Deferred tax assets—current | 1,392,971 | 1,514,473 | |
| Guarantee deposits—current | 1,462,223 | -- | |
| Other current assets, net of allowance for doubtful accounts of JPY 720 thousand at March 31, 2014 and December 31, 2014, respectively | 2,411,376 | 2,965,096 | |
| Total current assets | 51,700,466 | 50,220,039 | |
| INVESTMENTS IN EQUITY METHOD INVESTEES | 2,085,689 | 2,227,435 | |
| OTHER INVESTMENTS | 6,355,817 | 6,543,096 | |
| PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of JPY 34,725,611 thousand and JPY 38,076,823 thousand at March 31, 2014 and December 31, 2014, respectively | 26,971,485 | 28,458,260 | |
| GOODWILL | 5,969,951 | 6,169,609 | |
| OTHER INTANGIBLE ASSETS—Net | 4,338,944 | 4,040,541 | |
| GUARANTEE DEPOSITS | 1,264,535 | 2,784,225 | |
| DEFERRED TAX ASSETS—Noncurrent | 636,807 | 594,705 | |
| NET INVESTMENT IN SALES-TYPE LEASES—Noncurrent | 752,774 | 865,195 | |
| Prepaid expenses—Noncurrent | 2,633,154 | 2,845,185 | |
| OTHER ASSETS, net of allowance for doubtful accounts of JPY 62,800 thousand and JPY 62,489 thousand at March 31, 2014 and December 31, 2014, respectively | 1,156,953 | 1,080,218 | |
| TOTAL | 103,866,575 | 105,828,508 | |
| As of March 31, 2014 | As of December 31, 2014 | ||
| Thousands of JPY | Thousands of JPY | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| CURRENT LIABILITIES: | |||
| Short-term borrowings | 9,400,000 | 9,400,000 | |
| Long-term borrowings—current portion | 980,000 | -- | |
| Capital lease obligations—current portion | 3,753,026 | 3,596,578 | |
| Accounts payable—trade | 11,491,666 | 11,122,154 | |
| Accounts payable—other | 1,050,429 | 656,799 | |
| Income taxes payable | 1,079,480 | 336,424 | |
| Accrued expenses | 2,053,550 | 2,911,477 | |
| Deferred income—current | 1,560,603 | 2,377,347 | |
| Other current liabilities | 1,098,173 | 1,969,102 | |
| Total current liabilities | 32,466,927 | 32,369,881 | |
| CAPITAL LEASE OBLIGATIONS—Noncurrent | 4,603,322 | 4,346,448 | |
| ACCRUED RETIREMENT AND PENSION COSTS—Noncurrent | 2,274,540 | 2,582,714 | |
| DEFERRED TAX LIABILITIES—Noncurrent | 1,092,863 | 1,225,200 | |
| DEFERRED INCOME—Noncurrent | 2,711,347 | 2,894,855 | |
| OTHER NONCURRENT LIABILITIES | 536,950 | 820,623 | |
| Total Liabilities | 43,685,949 | 44,239,721 | |
| COMMITMENTS AND CONTINGENCIES | |||
| SHAREHOLDERS' EQUITY: | |||
| Common-stock | |||
| —authorized, 75,520,000 shares; issued and outstanding, 46,697,800 shares at March 31, 2014 | 25,497,022 | 25,499,857 | |
| —authorized, 75,520,000 shares; issued and outstanding, 46,701,000 shares at December 31, 2014 | |||
| Additional paid-in capital | 35,961,995 | 36,000,604 | |
| Accumulated deficit | (2,867,548) | (1,564,332) | |
| Accumulated other comprehensive income | 1,712,786 | 1,720,348 | |
| Treasury stock —758,709 shares held by the company at March 31, 2014 and December 31, 2014, respectively | (392,070) | (392,070) | |
| Total Internet Initiative Japan Inc. shareholders' equity | 59,912,185 | 61,264,407 | |
| NONCONTROLLING INTERESTS | 268,441 | 324,380 | |
| Total equity | 60,180,626 | 61,588,787 | |
| TOTAL | 103,866,575 | 105,828,508 | |
| Internet Initiative Japan Inc. | ||
| Quarterly Consolidated Statements of Income and | ||
| Quarterly Consolidated Statements of Other Comprehensive Income (Unaudited) | ||
| (For the nine months ended December 31, 2013 and December 31, 2014) | ||
| Quarterly Consolidated Statements of Income | ||
| Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| REVENUES: | ||
| Network services: | ||
| Internet connectivity services (enterprise) | 12,499,526 | 12,288,271 |
| Internet connectivity services (consumer) | 4,396,796 | 5,752,832 |
| WAN services | 18,785,947 | 18,145,417 |
| Outsourcing services | 14,619,196 | 14,975,424 |
| Total | 50,301,465 | 51,161,944 |
| Systems integration: | ||
| Systems construction | 11,635,117 | 12,493,812 |
| Systems operation and maintenance | 17,561,594 | 20,150,467 |
| Total | 29,196,711 | 32,644,279 |
| Equipment sales | 1,177,989 | 1,365,362 |
| ATM operation business | 2,070,278 | 2,674,213 |
| Total revenues | 82,746,443 | 87,845,798 |
| COST AND EXPENSES: | ||
| Cost of network services | 39,763,829 | 40,130,904 |
| Cost of systems integration | 24,826,140 | 28,179,242 |
| Cost of equipment sales | 1,062,057 | 1,196,462 |
| Cost of ATM operation business | 1,576,636 | 1,891,279 |
| Total cost | 67,228,662 | 71,397,887 |
| Sales and marketing | 6,345,713 | 6,829,064 |
| General and administrative | 4,645,519 | 5,467,733 |
| Research and development | 315,800 | 364,778 |
| Total cost and expenses | 78,535,694 | 84,059,462 |
| OPERATING INCOME | 4,210,749 | 3,786,336 |
| OTHER INCOME (EXPENSE): | ||
| Dividend income | 48,259 | 58,971 |
| Interest income | 18,670 | 14,990 |
| Interest expense | (194,108) | (180,095) |
| Foreign exchange gains (losses) | 202,598 | 27,415 |
| Net gain on sales of other investments | 107,655 | 5,317 |
| Net gain on other investments | 172,423 | -- |
| Other —net | 59,186 | 175,640 |
| Other income (expense) —net | 414,683 | 102,238 |
| INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES | 4,625,432 | 3,888,574 |
| INCOME TAX EXPENSE | 1,841,690 | 1,632,849 |
| EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES | 191,204 | 115,486 |
| NET INCOME | 2,974,946 | 2,371,211 |
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (50,876) | (57,300) |
| NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. | 2,924,070 | 2,313,911 |
| Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2014 | |
| NET INCOME PER SHARE | ||
| BASIC WEIGHTED-AVERAGE NUMBER OF SHARES (shares) | 43,772,437 | 45,942,291 |
| DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES (shares) | 43,825,204 | 46,011,417 |
| BASIC WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs) | 87,544,874 | 91,884,582 |
| DILUTED WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs) | 87,650,408 | 92,022,834 |
| BASIC NET INCOME PER SHARE (JPY / U.S. Dollars / JPY) | 66.80 | 50.37 |
| DILUTED NET INCOME PER SHARE (JPY / U.S. Dollars / JPY) | 66.72 | 50.29 |
| BASIC NET INCOME PER ADS EQUIVALENT (JPY / U.S. Dollars / JPY) | 33.40 | 25.18 |
| DILUTED NET INCOME PER ADS EQUIVALENT (JPY / U.S. Dollars / JPY) | 33.36 | 25.14 |
| Quarterly Consolidated Statements of Other Comprehensive Income | ||
| Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| NET INCOME | 2,974,946 | 2,371,211 |
| Comprehensive income （loss）: | ||
| Foreign currency translation adjustments | 279,107 | 64,375 |
| Unrealized holding gain (loss) on securities | 1,628,430 | (58,352) |
| Defined benefit pension plans | 178 | 178 |
| Total comprehensive income | 4,882,661 | 2,377,412 |
| Less: Comprehensive income attributable to noncontrolling interests | (51,037) | (55,939) |
| Comprehensive income attributable to Internet Initiative Japan Inc. | 4,831,624 | 2,321,473 |
| Internet Initiative Japan Inc. | ||
| Quarterly Consolidated Statements of Cash Flows (Unaudited) | ||
| (For the nine months ended December 31, 2013 and December 31, 2014) | ||
| Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| OPERATING ACTIVITIES: | ||
| Net income | 2,974,946 | 2,371,211 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 6,504,202 | 7,216,844 |
| Provision for retirement and pension costs, less payments | 172,815 | 176,514 |
| Provision for (reversal of) allowance for doubtful accounts | (45,808) | 2,165 |
| Gain on sales of property and equipment | -- | (29,344) |
| Loss on disposal of property and equipment | 11,443 | 91,988 |
| Net gain on sales of other investments | (107,655) | (5,317) |
| Net gain on other investments | (172,423) | -- |
| Foreign exchange gains, net | (155,394) | (15,390) |
| Equity in net income of equity method investees, less dividends received | (191,204) | (83,146) |
| Deferred income tax expense | 390,591 | 266,540 |
| Others | 53,567 | (15,649) |
| Changes in operating assets and liabilities net of effects from acquisition of a company: | ||
| Decrease in accounts receivable | 2,077,501 | 1,653,474 |
| Decrease (increase) in net investment in sales-type lease — noncurrent | 107,472 | (112,421) |
| Increase in inventories | (1,213,943) | (632,722) |
| Increase in prepaid expenses | (1,461,899) | (1,541,760) |
| Increase in other current and noncurrent assets | (532,984) | (60,501) |
| Decrease in accounts payable | (987,036) | (441,078) |
| Decrease in income taxes payable | (1,493,410) | (880,942) |
| Decrease in deferred income-noncurrent | (8,392) | (313,923) |
| Increase (decrease) in accrued expenses, other current and noncurrent liabilities | (190,343) | 2,365,330 |
| Net cash provided by operating activities | 5,732,046 | 10,011,873 |
| INVESTING ACTIVITIES: | ||
| Purchase of property and equipment | (7,227,651) | (6,568,926) |
| Proceeds from sales of property and equipment | 236,499 | 535,528 |
| Purchase of available-for-sale securities | (98,494) | (4,104) |
| Purchase of other investments | (1,127,831) | (181,678) |
| Investment in an equity method investee | -- | (50,000) |
| Proceeds from sales of available-for-sale securities | 391,814 | -- |
| Proceeds from sales of other investments | 20,000 | 30,501 |
| Payments of guarantee deposits | (681,378) | (1,611,498) |
| Refund of guarantee deposits | 7,818 | 1,559,399 |
| Payments for refundable insurance policies | (4,697) | (34,379) |
| Refund from insurance policies | 16,026 | -- |
| Proceeds from subsidies | -- | 200,000 |
| Acquisition of a newly controlled company, net of cash acquired | -- | (167,678) |
| Other | (12,209) | (25,000) |
| Net cash used in investing activities | (8,480,103) | (6,317,835) |
| Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| FINANCING ACTIVITIES: | ||
| Proceeds from issuance of short-term borrowings with initial maturities over three months | 250,000 | 50,000 |
| Repayments of short-term borrowings with initial maturities over three months and long-term borrowings | (1,260,000) | (1,030,000) |
| Principal payments under capital leases | (2,942,006) | (3,140,288) |
| Dividends paid | (910,697) | (1,010,695) |
| Proceeds from issuance of common stock, net of issuance cost | 17,271,204 | -- |
| Other | (41) | 3 |
| Net cash provided by (used in) financing activities | 12,408,460 | (5,130,980) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 183,075 | 62,842 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 9,843,478 | (1,374,100) |
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 12,258,872 | 22,421,100 |
| CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 22,102,350 | 21,047,000 |
| ADDITIONAL CASH FLOW INFORMATION: | ||
| Interest paid | 194,375 | 181,544 |
| Income taxes paid | 2,700,675 | 2,278,660 |
| NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
| Acquisition of assets by entering into capital leases | 2,635,473 | 2,720,754 |
| Facilities purchase liabilities | 600,544 | 656,799 |
| Asset retirement obligation | 177,223 | 176,597 |
| Acquisition of a company: | ||
| Assets acquired | -- | 1,064,736 |
| Liabilities assumed | -- | 464,736 |
| Cash paid | -- | (600,000) |
| Cash acquired | -- | 432,322 |
| Acquisition of a newly controlled company, net of cash acquired | -- | (167,678) |
| Going Concern Assumption (Unaudited) | ||
| Nothing to be reported. | ||
| Material Changes In Shareholders' Equity (Unaudited) | ||
| Nothing to be reported. | ||
| Segment Information (Unaudited) | ||
| Business Segments: | ||
| Revenues: | ||
| Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| Network service and systems integration business | 81,028,754 | 85,477,918 |
| Customers | 80,676,165 | 85,171,585 |
| Intersegment | 352,589 | 306,333 |
| ATM operation business | 2,070,278 | 2,674,213 |
| Customers | 2,070,278 | 2,674,213 |
| Intersegment | -- | -- |
| Elimination | 352,589 | 306,333 |
| Consolidated total | 82,746,443 | 87,845,798 |
| Segment profit or loss: | ||
| Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| Network service and systems integration business | 3,899,222 | 3,232,040 |
| ATM operation business | 399,972 | 653,996 |
| Elimination | 88,445 | 99,700 |
| Consolidated operating income | 4,210,749 | 3,786,336 |
| Geographic information is not presented due to immateriality of revenue attributable to international operations. | ||
| Subsequent Events (Unaudited) | ||
| Nothing to be reported. | ||
Third Quarter FY2014 Consolidated Financial Results (3 months)
The following tables are highlight data of third quarter FY2014 consolidated financial results (unaudited, from October 1, 2014 to December 31, 2014).
| Operating Results Summary | |||
| 3Q13 | 3Q14 | YoY % Change | |
| JPY millions | JPY millions | ||
| Total Revenues: | 28,349 | 30,674 | 8.2 |
| Network Services | 16,691 | 17,466 | 4.6 |
| Systems Integration (SI) | 10,524 | 11,776 | 11.9 |
| Equipment Sales | 422 | 521 | 23.2 |
| ATM Operation Business | 712 | 911 | 27.9 |
| Cost of Revenues: | 23,262 | 25,131 | 8.0 |
| Network Services | 13,299 | 13,763 | 3.5 |
| Systems Integration (SI) | 9,061 | 10,239 | 13.0 |
| Equipment Sales | 381 | 458 | 20.2 |
| ATM Operation Business | 521 | 671 | 28.8 |
| SG&A Expenses and R&D | 3,885 | 4,173 | 7.4 |
| Operating Income | 1,202 | 1,370 | 14.0 |
| Income before Income Tax Expense | 1,278 | 1,397 | 9.3 |
| Net Income attributable to IIJ | 719 | 870 | 20.9 |
| Network Services Revenues Breakdown | |||
| 3Q13 | 3Q14 | YoY % Change | |
| JPY millions | JPY millions | ||
| Internet Connectivity Service (Enterprise) | 4,141 | 4,080 | (1.5) |
| IP Service | 2,550 | 2,442 | (4.3) |
| IIJ FiberAccess/F and IIJ DSL/F | 793 | 778 | (1.9) |
| IIJ Mobile Service | 740 | 801 | 8.3 |
| Others | 58 | 59 | 1.7 |
| Internet Connectivity Service (Consumer) | 1,541 | 2,242 | 45.5 |
| Under IIJ Brand | 596 | 1,400 | 134.8 |
| hi-ho | 766 | 692 | (9.6) |
| OEM | 179 | 150 | (16.3) |
| WAN Services | 6,168 | 6,189 | 0.3 |
| Outsourcing Services | 4,841 | 4,955 | 2.3 |
| Network Services Revenues | 16,691 | 17,466 | 4.6 |
Reconciliation of Non-GAAP Financial Measures (Third Quarter FY2014 (3 months))
The following table summarizes the reconciliation of adjusted EBITDA to net income in our consolidated statements of income that are prepared in accordance with U.S. GAAP.
| Adjusted EBITDA | ||
| 3Q13 | 3Q14 | |
| JPY millions | JPY millions | |
| Adjusted EBITDA | 3,468 | 3,903 |
| Depreciation and Amortization | 2,266 | 2,533 |
| Operating Income | 1,202 | 1,370 |
| Other Income (Expense) | 76 | 27 |
| Income Tax Expense | 599 | 558 |
| Equity in Net Income of Equity Method Investees | 64 | 46 |
| Net income | 743 | 885 |
| Less: Net income attributable to noncontrolling interests | (24) | (15) |
| Net Income attributable to IIJ | 719 | 870 |
The following table summarizes the reconciliation of capital expenditures to the purchase of property and equipment in our consolidated statements of cash flows that are prepared and presented in accordance with U.S. GAAP.
| CAPEX | ||
| 3Q13 | 3Q14 | |
| JPY millions | JPY millions | |
| CAPEX, including capital leases | 5,216 | 3,489 |
| Acquisition of Assets by Entering into Capital Leases | 772 | 930 |
| Purchase of Property and Equipment | 4,444 | 2,559 |
| Internet Initiative Japan Inc. | ||
| Quarterly Consolidated Statements of Income (Unaudited) | ||
| (For the three months ended December 31, 2013 and December 31, 2014) | ||
| Three Months Ended December 31, 2013 | Three Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| REVENUES: | ||
| Network services: | ||
| Internet connectivity services (enterprise) | 4,141,412 | 4,080,290 |
| Internet connectivity services (consumer) | 1,541,006 | 2,242,443 |
| WAN services | 6,167,599 | 6,189,009 |
| Outsourcing services | 4,840,919 | 4,954,577 |
| Total | 16,690,936 | 17,466,319 |
| Systems integration: | ||
| Systems Construction | 4,483,875 | 4,625,098 |
| Systems Operation and Maintenance | 6,039,819 | 7,150,557 |
| Total | 10,523,694 | 11,775,655 |
| Equipment sales | 422,680 | 520,760 |
| ATM operation business | 712,174 | 910,846 |
| Total revenues | 28,349,484 | 30,673,580 |
| COST AND EXPENSES: | ||
| Cost of network services | 13,299,490 | 13,762,311 |
| Cost of systems integration | 9,060,955 | 10,239,223 |
| Cost of equipment sales | 380,895 | 457,965 |
| Cost of ATM operation business | 520,692 | 670,903 |
| Total cost | 23,262,032 | 25,130,402 |
| Sales and marketing | 2,183,154 | 2,265,958 |
| General and administrative | 1,608,318 | 1,793,802 |
| Research and development | 94,210 | 113,318 |
| Total cost and expenses | 27,147,714 | 29,303,480 |
| OPERATING INCOME | 1,201,770 | 1,370,100 |
| OTHER INCOME (EXPENSE): | ||
| Dividend income | 12,499 | 11,432 |
| Interest income | 5,869 | 3,752 |
| Interest expense | (61,641) | (57,571) |
| Foreign exchange gains (losses) | 63,313 | 36,796 |
| Net gain on sales of other investments | 24,803 | -- |
| Other—net | 31,221 | 32,679 |
| Other income (expense) — net | 76,064 | 27,088 |
| INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES | 1,277,834 | 1,397,188 |
| INCOME TAX EXPENSE | 598,517 | 558,440 |
| EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES | 63,846 | 46,253 |
| NET INCOME | 743,163 | 885,001 |
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (23,964) | (15,354) |
| NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. | 719,199 | 869,647 |
| Three Months Ended December 31, 2013 | Three Months Ended December 31, 2014 | |
| NET INCOME PER SHARE | ||
| BASIC WEIGHTED-AVERAGE NUMBER OF SHARES (shares) | 45,938,987 | 45,942,291 |
| DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES (shares) | 45,995,002 | 46,017,618 |
| BASIC WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs) | 91,877,974 | 91,884,582 |
| DILUTED WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs) | 91,990,004 | 92,035,236 |
| BASIC NET INCOME PER SHARE (JPY / U.S. Dollars / JPY) | 15.66 | 18.93 |
| DILUTED NET INCOME PER SHARE (JPY / U.S. Dollars / JPY) | 15.64 | 18.90 |
| BASIC NET INCOME PER ADS EQUIVALENT (JPY / U.S. Dollars / JPY) | 7.83 | 9.46 |
| DILUTED NET INCOME PER ADS EQUIVALENT (JPY / U.S. Dollars / JPY) | 7.82 | 9.45 |
| Internet Initiative Japan Inc. | ||
| Quarterly Consolidated Statements of Cash Flows (Unaudited) | ||
| (For the three months ended December 31, 2013 and December 31, 2014) | ||
| Three Months Ended December 31, 2013 | Three Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| OPERATING ACTIVITIES: | ||
| Net income | 743,163 | 885,001 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 2,265,726 | 2,533,248 |
| Provision for retirement and pension costs, less payments | 55,092 | 56,928 |
| Provision for allowance for doubtful accounts | 1,392 | 416 |
| Loss on disposal of property and equipment | 7,827 | 71,370 |
| Net gain on sales of other investments | (24,803) | -- |
| Foreign exchange gains, net | (67,370) | (1,893) |
| Equity in net income of equity method investees, less dividends received | (63,846) | (46,253) |
| Deferred income tax expense | 221,007 | 35,806 |
| Others | 52,633 | (38,664) |
| Changes in operating assets and liabilities net of effects from acquisition of a company: | ||
| Decrease (increase) in accounts receivable | (58,605) | 1,887,949 |
| Decrease (increase) in net investment in sales-type lease―noncurrent | 42,497 | (367,550) |
| Increase in inventories | (455,298) | (239,596) |
| Increase in prepaid expenses | (528,822) | (821,921) |
| Decrease (increase) in other current and noncurrent assets | (685,056) | 137,732 |
| Increase in accounts payable | 525,733 | 721,952 |
| Decrease in income taxes payable | (699,762) | (553,150) |
| Increase (decrease) in deferred income― noncurrent | 368,209 | (834,969) |
| Increase in accrued expenses, other current and noncurrent liabilities | 336,714 | 1,240,894 |
| Net cash provided by operating activities | 2,036,431 | 4,667,300 |
| INVESTING ACTIVITIES: | ||
| Purchase of property and equipment | (4,443,660) | (2,558,579) |
| Proceeds from sales of property and equipment | 113,413 | 108,938 |
| Purchase of available-for-sale securities | (64,592) | (4,104) |
| Purchase of other investments | (45,191) | (57,974) |
| Proceeds from sales of available-for-sale securities | 172,452 | -- |
| Proceeds from sales of other investments | 16,000 | 5,000 |
| Payments of guarantee deposits | (19,095) | (3,512) |
| Refund of guarantee deposits | 706 | 1,526,219 |
| Payments for refundable insurance policies | (4,697) | (12,014) |
| Acquisition of a newly controlled company, net of cash acquired | -- | (167,678) |
| Other | (2,959) | -- |
| Net cash used in investing activities | (4,277,623) | (1,163,704) |
| Three Months Ended December 31, 2013 | Three Months Ended December 31, 2014 | |
| Thousands of JPY | Thousands of JPY | |
| FINANCING ACTIVITIES: | ||
| Proceeds from issuance of short-term borrowings with initial maturities over three months | 50,000 | 50,000 |
| Repayments of short-term borrowings with initial maturities over three months and long-term borrowings | (50,000) | (50,000) |
| Principal payments under capital leases | (969,549) | (1,057,398) |
| Dividends paid | (505,329) | (505,365) |
| Net cash used in financing activities | (1,474,878) | (1,562,763) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 36,790 | 57,457 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3,679,280) | 1,998,290 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 25,781,630 | 19,048,710 |
| CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 22,102,350 | 21,047,000 |
Note: The following information is provided to disclose Internet Initiative Japan Inc. ("IIJ") financial results (unaudited) for the nine months ended December 31, 2014 ("3Q14") in the form defined by the Tokyo Stock Exchange.
Consolidated Financial Results for the Nine Months Ended December 31, 2014
[Under accounting principles generally accepted in the United States ("U.S. GAAP")]
| February 10, 2015 | |
| Company name: Internet Initiative Japan Inc. | Exchange listed: Tokyo Stock Exchange First Section |
| Stock code number: 3774 | URL: http://www.iij.ad.jp/ |
| Representative: Eijiro Katsu, President and Representative Director | |
| Contact: Akihisa Watai, Managing Director and CFO | TEL: (03) 5205-6500 |
| Scheduled date for filing of quarterly report (Shihanki-houkokusho) to Japan's regulatory organization: February 16, 2015 | |
| Scheduled date for interim dividend payment: -- | |
| Supplemental material on quarterly results: Yes | |
| Presentation on quarterly results: Yes (for institutional investors and analysts) | |
| (Amounts of less than JPY one million are rounded) |
1. Consolidated Financial Results for the Nine Months Ended December 31, 2014
(April 1, 2014 to December 31, 2014)
| (1) Consolidated Results of Operations | (% shown is YoY change) | |||||||
| Total Revenues | Operating Income | Income before Income Tax Expense | Net Income attributable to IIJ | |||||
| JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | |
| Nine months ended December 31, 2014 | 87,846 | 6.2 | 3,786 | (10.1) | 3,889 | (15.9) | 2,314 | (20.9) |
| Nine months ended December 31, 2013 | 82,746 | 7.9 | 4,211 | (16.5) | 4,625 | (6.5) | 2,924 | (6.0) |
(Note1) Total comprehensive income attributable to IIJ
Nine Months Ended December 31, 2014: JPY2,321 million (down 52.0% YoY)
Nine Months Ended December 31, 2013: JPY4,832 million (up 51.6% YoY)
(Note2) Income before income tax expense represents income from operations before income tax expense and equity in net income in equity method investees, respectively, in IIJ's consolidated financial statements.
| Basic Net Income attributable to IIJ per Share | Diluted Net Income attributable to IIJ per Share | |
| JPY | JPY | |
| Nine months ended December 31, 2014 | 50.37 | 50.29 |
| Nine months ended December 31, 2013 | 66.80 | 66.72 |
| (2) Consolidated Financial Position | ||||
| Total Assets | Total Equity | Total IIJ Shareholders' Equity | Total IIJ Shareholders' Equity to Total Assets | |
| JPY millions | JPY millions | JPY millions | % | |
| As of December 31, 2014 | 105,829 | 61,589 | 61,264 | 57.9 |
| As of March 31, 2014 | 103,867 | 60,181 | 59,912 | 57.7 |
2. Dividends
| Dividend per Shares | |||||
| 1Q-end | 2Q-end | 3Q-end | Year-end | Total | |
| JPY | JPY | JPY | JPY | JPY | |
| Fiscal Year Ended March 31, 2014 | -- | 11.00 | -- | 11.00 | 22.00 |
| Fiscal Year Ending March 31, 2015 | -- | 11.00 | -- | ||
| Fiscal Year Ending March 31, 2015 (forecast) | -- | 11.00 | 22.00 | ||
(Note) Change from the latest released dividend forecasts: No
3. Target of Consolidated Financial Results for the Fiscal Year Ending March 31, 2015
(April 1, 2014 through March 31, 2015)
| (% shown is YoY change) | |||||||||
| Total Revenues | Operating Income | Income before Income Tax Expense (Benefit) | Net Income attributable to IIJ | Basic Net Income attributable to IIJ per Share | |||||
| JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY | |
| Fiscal Year Ending March 31, 2015 | 122,000 | 6.8 | 6,500 | 13.6 | 6,500 | 3.6 | 4,000 | (10.0) | 87.07 |
(Note) Change from the latest released earnings target: No
| * Notes | |
| (1) Changes in Significant Subsidiaries for the nine months ended December 31, 2014 | |
| (Changes in significant subsidiaries for the nine months ended December 31, 2014 which resulted in changes in scope of consolidation): No | |
| (2) Application of simplified or exceptional accounting: No | |
| (3) Changes in Significant Accounting and Reporting Policies for the Consolidated Financial Statements | |
| 1) Changes due to the revision of accounting standards: No | |
| 2) Others: No | |
| (4) Number of Shares Outstanding (Shares of Common Stock) | |
| 1) The number of shares outstanding (inclusive of treasury stock): | |
| As of December 31, 2014: | 46,701,000 shares |
| As of March 31, 2014: | 46,697,800 shares |
| 2) The number of treasury stock: | |
| As of December 31, 2014: | 758,709 shares |
| As of March 31, 2014: | 758,709 shares |
| 3) The weighted average number of shares outstanding: | |
| For the nine months ended December 31, 2014: | 45,942,291 shares |
| For the nine months ended December 31, 2013: | 43,772,437 shares |
CONTACT: IIJ Investor Relations
Tel: +81-3-5205-6500 E-mail: ir@iij.ad.jp