TOKYO, Nov. 7, 2014 (GLOBE NEWSWIRE) -- Internet Initiative Japan Inc. ("IIJ") (Nasdaq:IIJI) (TSE:3774) today announced its consolidated financial results for the first six months of the fiscal year ending March 31, 2015 (from April 1, 2014 to September 30, 2014, "1H FY2014", "1H14"). 1
| Highlights of Financial Results for 1H14 | ||||
| Revenues | JPY57,172 million | (up 5.1% YoY) | ||
| Operating Income | JPY2,416 million | (down 19.7% YoY) | ||
| Net Income attributable to IIJ | JPY1,444 million | (down 34.5% YoY) | ||
| Highlights of Financial Results for 2Q14 | ||||
| Revenues | JPY29,620 million | (up 6.0% YoY) | ||
| Operating Income | JPY1,648 million | (down 3.2% YoY) | ||
| Net Income attributable to IIJ | JPY953 million | (down 23.8% YoY) | ||
Overview of 1H14 Financial Results and Business Outlook
"We expect Japanese corporations' increasing demands for outsourcing network and IT systems to continue over the next few years along with further adoption of cloud services and recovery of IT investment appetite. Seeing a great business opportunity in front of us, we've been aggressively making business investments by increasing human resources, enhancing service and solution developments related to mobile, M2M, 2 cloud, and BigData in particular and expanding overseas business. While we're bearing operating cost increase or even deficit in overseas business in this 1st half, we acquired several large-scale projects such as constructing cloud-based security control systems for a Japanese commercial bank, supporting Panasonic's entry to MVNO3 business,4 and exporting our container data center modules. We anticipate projects should become even larger in later half or next few years and contribute to our middle-to-long term business growth," said Koichi Suzuki, Founder and CEO of IIJ.
"We've been investing and developing infrastructure and services related to our network, mobile, and cloud over the years. We're starting to see a growing number of integration projects requiring cloud, network services, MVNO infrastructure, and system integration all at once. We're certain that our expertise in operating large network and our network element itself are significant differentiation factors from System Integrators. Panasonic's entry to MVNO business is a great example in which we offer our MVNO infrastructure as MVNE,5 construct peripheral systems including billing, and provide security-related services. We believe we're best positioned in meeting these growing demands," followed Eijiro Katsu, COO and President of IIJ.
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 M2M: Machine to Machine
3 MVNO: Mobile Virtual Network Operator.
4 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
5 MVNE: Mobile Virtual Network Enabler
"Business progress with our MVNO in this 1st half is quite fine as we continued to accumulate consumer subscription from our LTE SIM card offerings and acquired large MVNE projects for enterprises. The subscription is increasing at an accelerated pace currently with the launch of SIM-free iPhone6 and our price strategy6. Increasing interest for M2M systems is also a tailwind for us as we already have related service lineups and are operating several projects. We anticipate our corporate MVNO business to largely expand for the middle-to-long term as MVNE and M2M needs are growing," continued Katsu.
"With regards to our 1st half financial results, revenues increased while operating profit decreased from 1H13 mainly because of our one-time headquarter relocation costs and expenses (approx. JPY0.5 billion) and our aggressive business enhancement for service and solution developments, which is reflected as an increase in personnel and other related costs. Also, the results were slightly behind our target as the costs increased from the beginning of this fiscal year while revenue grew gradually and the accumulation of large-scale projects which tend to take longer, had some impact on our monthly recurring revenue accumulation. Therefore, we adjusted our full year financial target downward. We remain confident about our future growth and shall continuously invest in our business strategically to seize further business opportunities," concluded Suzuki.
1H14 Financial Results Summary
| Operating Results Summary | ||||||
| 1H13 | 1H14 |
YoY % Change |
||||
| JPY millions | JPY millions | |||||
| Total Revenues | 54,397 | 57,172 | 5.1 | |||
| Network Services | 33,611 | 33,695 | 0.3 | |||
| Systems Integration (SI) | 18,673 | 20,869 | 11.8 | |||
| Equipment Sales | 755 | 845 | 11.8 | |||
| ATM Operation Business | 1,358 | 1,763 | 29.8 | |||
| Total Costs | 43,967 | 46,267 | 5.2 | |||
| Network Services | 26,465 | 26,369 | (0.4) | |||
| Systems Integration (SI) | 15,765 | 17,940 | 13.8 | |||
| Equipment Sales | 681 | 738 | 8.4 | |||
| ATM Operation Business | 1,056 | 1,220 | 15.6 | |||
| SG&A Expenses and R&D | 7,421 | 8,489 | 14.4 | |||
| Operating Income | 3,009 | 2,416 | (19.7) | |||
| Income before Income Tax Expense | 3,348 | 2,491 | (25.6) | |||
| Net income attributable to IIJ | 2,205 | 1,444 | (34.5) | |||
| Segment Results Summary | ||||
| 1H13 | 1H14 | |||
| JPY millions | JPY millions | |||
| Total Revenues | 54,397 | 57,172 | ||
| Network services and SI business | 53,296 | 55,607 | ||
| ATM operation business | 1,358 | 1,763 | ||
| Elimination | 257 | 198 | ||
| Operating Income | 3,009 | 2,416 | ||
| Network service and SI business | 2,829 | 2,021 | ||
| ATM operation business | 241 | 460 | ||
| Elimination | 61 | 65 | ||
We have omitted segment analysis because most of our revenues are dominated by Network services and Systems Integration (SI) business.
6 From October 1, IIJ offers its LTE SIM card offerings for consumers with a new price list in which we increased the bundled data volume while keeping the same monthly charge
1H14 Results of Operation
Revenues
Total revenues were JPY57,172 million, up 5.1% YoY.
Network Services revenue was JPY33,695 million, up 0.3% YoY.
Revenues for Internet connectivity services for enterprise were JPY8,208 million, down 1.8% YoY from JPY8,358 million for 1H13, mainly due to a decrease in IP services revenues, while mobile service revenues increased.
Revenues for Internet connectivity services for consumer were JPY3,510 million, up 22.9% YoY from JPY2,856 million for 1H13, mainly due to revenue growth of LTE SIM card offerings.
WAN services revenues were JPY11,956 million, down 5.2% YoY compared to 12,619 million for 1H13.
Outsourcing services revenues were JPY10,021 million, up 2.5% YoY from JPY9,778 million for 1H13, mainly by the increase in revenues of "IIJ GIO Hosting Package Services".
| Network Services7 Revenues Breakdown | ||||||
| 1H13 | 1H14 |
YoY % Change |
||||
| JPY millions | JPY millions | |||||
| Internet Connectivity Service (Enterprise) | 8,358 | 8,208 | (1.8) | |||
| IP Service8 | 5,268 | 4,984 | (5.4) | |||
| IIJ FiberAccess/F and IIJ DSL/F | 1,575 | 1,588 | 0.8 | |||
| IIJ Mobile Service (Enterprise) | 1,401 | 1,523 | 8.7 | |||
| Others | 114 | 113 | (0.5) | |||
| Internet Connectivity Service (Consumer) | 2,856 | 3,510 | 22.9 | |||
| Under IIJ Brand | 980 | 1,741 | 77.6 | |||
| hi-ho | 1,532 | 1,422 | (7.2) | |||
| OEM | 344 | 347 | 1.0 | |||
| WAN Services | 12,619 | 11,956 | (5.2) | |||
| Outsourcing Services | 9,778 | 10,021 | 2.5 | |||
| Total Network Services | 33,611 | 33,695 | 0.3 | |||
| Number of Contracts for Connectivity Services | ||||||
|
as of Sep 30, 2013 |
as of Sep 30, 2014 |
YoY Change |
||||
| Internet Connectivity Services (Enterprise) | 123,334 | 156,678 | 33,344 | |||
| IP Service (-99Mbps) | 879 | 806 | (73) | |||
| IP Service (100Mbps-999Mbps) | 428 | 487 | 59 | |||
| IP Service (1Gbps--) | 255 | 284 | 29 | |||
| IIJ Data Center Connectivity Service | 299 | 288 | (11) | |||
| IIJ FiberAccess/F and IIJ DSL/F | 52,374 | 58,845 | 6,471 | |||
| IIJ Mobile Service (Enterprise) | 67,789 | 94,647 | 26,858 | |||
| Others | 1,310 | 1,321 | 11 | |||
| Internet Connectivity Services (Consumer) | 552,993 | 679,990 | 126,997 | |||
| Under IIJ Brand | 123,920 | 201,627 | 77,707 | |||
| hi-ho | 155,045 | 153,451 | (1,594) | |||
| OEM | 274,028 | 324,912 | 50,884 | |||
| Total Contracted Bandwidth | 1,454.8Gbps | 1,633.0Gbps | 178.2Gbps | |||
7 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.
8 IP Service revenues include revenues from the Data Center Connectivity Service.
SI revenues were JPY20,869 million, up 11.8% YoY.
Systems construction revenue, a one-time revenue, was JPY7,869 million, up 10.0% YoY, mainly due to increase in the scale of systems construction projects. Systems operation and maintenance revenue, a recurring revenue, was JPY13,000 million, up 12.8% YoY. "IIJ GIO Component Services" revenues increased and the systems construction projects that completed and were shifted to operation and maintenance phase contributed to revenue increase of systems operation and maintenance.
Orders received for SI and equipment sales for 1H14 totaled JPY24,443 million, down 3.0% YoY; orders received for systems construction and equipment sales were JPY9,917 million, down 5.2% YoY and orders received for systems operation and maintenance were JPY14,526 million, down 1.4% YoY.
Order backlog for SI and equipment sales as of September 30, 2014 amounted to JPY27,038 million, up 4.6% YoY; order backlog for systems construction and equipment sales was JPY6,306 million, up 0.7% YoY and order backlog for systems operation and maintenance was JPY20,732 million, up 5.8% YoY.
Equipment sales revenues were JPY845 million, up 11.8% YoY.
ATM Operation Business revenues were JPY1,763 million, up 29.8% YoY. The increase was in accordance with the continuous increase in the numbers of operating ATMs. As of November 7, 2014, 950 ATMs are in operation (698 ATMs as of November 8, 2013).
Cost and expense
Total cost of revenues was JPY46,267 million, up 5.2% YoY.
Cost of Network Services revenue was JPY26,369 million, almost flat compared to 1H13. Gross margin was JPY7,327 million, up 2.5% YoY and gross margin ratio was 21.7%.
Cost of SI revenues was JPY17,940 million, up 13.8% YoY. The increase was mainly due to the increase in outsourcing-related costs, personnel-related costs and purchasing costs. Gross margin was JPY2,929 million, up 0.7% YoY and gross margin ratio was 14.0%.
Cost of Equipment Sales revenues was JPY738 million, up 8.4% YoY. Gross margin was JPY106 million, up 43.1% YoY and gross margin ratio was 12.6%.
Cost of ATM Operation Business revenues was JPY1,220 million, up 15.6% YoY in accordance with the number of newly placed ATMs. Gross margin was JPY543 million, up 79.7% YoY and gross margin ratio was 30.8%.
SG&A and R&D Expenses
SG&A and R&D expenses in total were JPY8,489 million, up 14.4% YoY (JPY7,421 million in 1H13).
Sales and marketing expenses were JPY4,563 million, up 9.6% YoY. The increase was mainly due to the increase in personnel-related expenses.
General and administrative expenses were JPY3,674 million, up 21.0% YoY. The increase was mainly due to the expenses related to the relocation of headquarter in 1H14.
Research and development expenses were JPY252 million, up 13.5% YoY.
Operating income
Operating income was JPY2,416 million, down 19.7% YoY (JPY3,009 million for 1H13).
Other income (expenses)
Other income (expenses) was an income of JPY75 million (an income of JPY339 million for 1H13), as a result of miscellaneous non-operating income of JPY159 million, such as gain on other investments, dividend income of JPY48 million and interest expenses of JPY123 million.
Income before income tax expense
Income before income tax expense was JPY2,491 million, down 25.6% YoY. (JPY3,348 million for 1H13)
Net Income
Income tax expense was JPY1,074 million (JPY1,243 million for 1H13).
Equity in net income of equity method investees was JPY69 million (JPY127 million for 1H13) mainly due to net income of Internet Multifeed Co.and Internet Revolution, Inc.
As a result of the above, net income was JPY1,486 million, down 33.4% YoY (JPY2,232 million for 1H13).
Net income attributable to IIJ
Net income attributable to non-controlling interests was JPY42 million mainly related to net income of Trust Networks Inc. (JPY27 million for 1H13).
Net income attributable to IIJ was JPY1,444 million, down 34.5% YoY (JPY2,205 million for 1H13).
1H14 Financial Condition
Balance Sheets
As of September 30, 2014, the balance of total assets was JPY103,222 million, decreased by JPY645 million from the balance as of March 31, 2014 of JPY103,867 million.
As for current assets as of September 30, 2014, as compared to the respective balances as of March 31, 2014, cash and cash equivalents decreased by JPY3,372 million, mainly related to payments of guarantee deposits for our headquarter and repayment of bank borrowings, prepaid expense increased by JPY715 million and inventories increased by JPY393 million. As for noncurrent assets, as compared to the respective balance as of March 31, 2014, guarantee deposits increased by JPY1,511 million along with our headquarter relocation, other investments decreased by JPY1,196 mainly due to the decrease in unrealized holding gain on securities and property and equipment increased by JPY1,113 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, accounts payable decreased by JPY824 million and current portion of deferred income increased by JPY515 million related to long-term systems maintenance projects.
As for the balances of capital lease obligations, as compared to the respective balances as of March 31, 2014, capital lease obligations-current portion decreased by JPY72 million to JPY3,681 million and capital lease obligations-noncurrent decreased by JPY227 million to JPY4,376 million.
As of September 30, 2014, the balance of other investments was JPY5,160 million. The breakdown of other investments were JPY2,644 million in nonmarketable equity securities, JPY2,437 million in available-for-sale securities and JPY78 million in other.
As of September 30, 2014, the breakdown of major non-amortized intangible assets were JPY5,970 million in goodwill and JPY107 million in trademark. The balance of amortized intangible assets, which was customer relationships, was JPY4,003 million.
Total IIJ shareholders' equity as of September 30, 2014 increased by JPY61 million to JPY59,973 million. While net income attributable to IIJ were JPY1,444 million, there were payments for FY2013 year-end dividends of JPY505 million and decrease in accumulated other comprehensive income by JPY906 million mainly as a result of the decrease in unrealized gain in other investments. IIJ shareholders' equity ratio (total IIJ shareholders' equity/total assets) as of September 30, 2014 was 58.1%.
Cash Flows
Cash and cash equivalents as of September 30, 2014 were JPY19,049 million compared to JPY25,782 million as of September 30, 2013.
Net cash provided by operating activities for 1H14 was JPY5,345 million compared to net cash provided by operating activities of JPY3,696 million for 1H13. 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 1H13.
Net cash used in investing activities for 1H14 was JPY5,154 million compared to net cash used in investing activities of JPY4,202 million for 1H13 mainly due to payments for purchase of property and equipment of JPY4,010 million (JPY2,784 million for 1H13) and payments of guarantee deposits of JPY1,608 million (JPY662 million for 1H13).
Net cash used in financing activities for 1H14 was JPY3,568 million compared to net cash provided by financing activities of JPY13,883 million for 1H13, mainly due to principal payments under capital leases of JPY2,083 million (JPY1,972 million for 1H13), repayments of bank borrowings of JPY980 million and FY2013 year-end dividends payments of JPY505 million (JPY405 million for 1H13).
Prospects for the Fiscal Year Ending March 31, 2015
1H14 financial results were slightly behind our target. 1H14 operating income was weaker than 1H13 mainly due to a recognition of a one-time cost and expense regarding our headquarter relocation and an increase in personnel-related costs from the beginning of this fiscal year. While operating costs and expenses have been increasing along with our enhanced business investments, we have been acquiring more large-scale and complex projects. As large-scale projects in general tend to take longer to be recognized as revenues, the accumulation of network service revenues was not as strong as expected in 1H14.
Although our financial results tend to be large in second half, especially in fourth quarter, due to seasonal factors, we revised down our consolidated financial target for the fiscal year ending March 31, 2014 announced on May 15, 2014 considering the gap between our 1H14 target and 1H14 results, Revised target is as follows:
Revision for the Consolidated Financial Target for FY2014
|
Total Revenues |
Operating Income |
Income before Income Tax Expense (Benefit) |
Net Income attributable to IIJ |
|
| JPY millions | JPY millions | JPY millions | JPY millions | |
| Previous Target | 123,000 | 7,200 | 7,000 | 4,500 |
| Revised Target | 122,000 | 6,500 | 6,500 | 4,000 |
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 | ||||
| 1H13 | 1H14 | |||
| JPY millions | JPY millions | |||
| Adjusted EBITDA | 7,247 | 7,100 | ||
| Depreciation and Amortization 9 | (4,238) | (4,684) | ||
| Operating Income | 3,009 | 2,416 | ||
| Other Income (Expense) | 339 | 75 | ||
| Income Tax Expense | 1,243 | 1,074 | ||
|
Equity in Net Income of Equity Method Investees |
127 | 69 | ||
| Net income | 2,232 | 1,486 | ||
|
Net loss (income) attributable to noncontrolling interests |
(27) | (42) | ||
| Net Income attributable to IIJ | 2,205 | 1,444 | ||
| CAPEX | ||||
| 1H13 | 1H14 | |||
| JPY millions | JPY millions | |||
| CAPEX, including capital leases | 4,647 | 5,800 | ||
|
Acquisition of Assets by Entering into Capital Leases |
1,863 | 1,790 | ||
| Purchase of Property and Equipment | 2,784 | 4,010 | ||
Presentation
Presentation materials will be posted on our web site (http://www.iij.ad.jp/en/ir/) on November 7, 2014.
9 Depreciation and amortization includes impairment loss on other intangible assets. (See IIJ's consolidated financial statements for details).
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 September 30, 2014) | ||
| As of March 31, 2014 | As of September 30, 2014 | |
|
Thousands of JPY |
Thousands of JPY |
|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | 22,421,100 | 19,048,710 |
|
Accounts receivable, net of allowance for doubtful accounts of JPY 53,871 thousand and JPY 54,190 thousand at March 31, 2014 and September 30, 2014, respectively |
19,214,248 | 19,438,594 |
| Inventories | 1,670,258 | 2,062,920 |
| Prepaid expenses | 3,128,290 | 3,843,718 |
| Deferred tax assets—current | 1,392,971 | 1,385,455 |
| Guarantee deposits—current | 1,462,223 | 1,523,909 |
|
Other current assets, net of allowance for doubtful accounts of JPY 720 thousand at March 31, 2014 and September 30, 2014, respectively |
2,411,376 | 2,478,729 |
| Total current assets | 51,700,466 | 49,782,035 |
| INVESTMENTS IN EQUITY METHOD INVESTEES | 2,085,689 | 2,172,582 |
| OTHER INVESTMENTS | 6,355,817 | 5,159,628 |
|
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of JPY 34,725,611 thousand and JPY 37,027,377 thousand at March 31, 2014 and September 30, 2014, respectively |
26,971,485 | 28,084,978 |
| GOODWILL | 5,969,951 | 5,969,951 |
| OTHER INTANGIBLE ASSETS—Net | 4,338,944 | 4,139,667 |
| GUARANTEE DEPOSITS | 1,264,535 | 2,775,450 |
| DEFERRED TAX ASSETS—Noncurrent | 636,807 | 678,025 |
| NET INVESTMENT IN SALES-TYPE LEASES—Noncurrent | 752,774 | 497,645 |
| Prepaid expenses—Noncurrent | 2,633,154 | 2,830,608 |
|
OTHER ASSETS, net of allowance for doubtful accounts of JPY 62,800 thousand and JPY 63,557 thousand at March 31, 2014 and September 30, 2014, respectively |
1,156,953 | 1,131,055 |
| TOTAL | 103,866,575 | 103,221,624 |
| As of March 31, 2014 | As of September 30, 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 | 3,681,036 |
| Accounts payable—trade | 11,491,666 | 10,529,223 |
| Accounts payable—other | 1,050,429 | 1,189,035 |
| Income taxes payable | 1,079,480 | 751,450 |
| Accrued expenses | 2,053,550 | 2,315,566 |
| Deferred income—current | 1,560,603 | 2,075,961 |
| Other current liabilities | 1,098,173 | 1,394,396 |
| Total current liabilities | 32,466,927 | 31,336,667 |
| CAPITAL LEASE OBLIGATIONS—Noncurrent | 4,603,322 | 4,375,986 |
| ACCRUED RETIREMENT AND PENSION COSTS—Noncurrent | 2,274,540 | 2,393,941 |
| DEFERRED TAX LIABILITIES—Noncurrent | 1,092,863 | 800,539 |
| DEFERRED INCOME—Noncurrent | 2,711,347 | 3,229,709 |
| OTHER NONCURRENT LIABILITIES | 536,950 | 801,294 |
| Total Liabilities | 43,685,949 | 42,938,136 |
| 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 September 30, 2014 |
||
| Additional paid-in capital | 35,961,995 | 35,987,081 |
| Accumulated deficit | (2,867,548) | (1,928,614) |
| Accumulated other comprehensive income | 1,712,786 | 806,459 |
|
Treasury stock —758,709 shares held by the company at March 31, 2014 and September 30, 2014, respectively |
(392,070) | (392,070) |
| Total Internet Initiative Japan Inc. shareholders' equity | 59,912,185 | 59,972,713 |
| NONCONTROLLING INTERESTS | 268,441 | 310,775 |
| Total equity | 60,180,626 | 60,283,488 |
| TOTAL | 103,866,575 | 103,221,624 |
| Internet Initiative Japan Inc. | ||
|
Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Other Comprehensive Income (Unaudited) |
||
| (For the six months ended September 30, 2013 and September 30, 2014) | ||
| Quarterly Consolidated Statements of Income | ||
|
Six Months Ended September 30, 2013 |
Six Months Ended September 30, 2014 |
|
|
Thousands of JPY |
Thousands of JPY |
|
| REVENUES: | ||
| Network services: | ||
| Internet connectivity services (enterprise) | 8,358,114 | 8,207,981 |
| Internet connectivity services (consumer) | 2,855,790 | 3,510,389 |
| WAN services | 12,618,348 | 11,956,408 |
| Outsourcing services | 9,778,277 | 10,020,847 |
| Total | 33,610,529 | 33,695,625 |
| Systems integration: | ||
| Systems construction | 7,151,242 | 7,868,714 |
| Systems operation and maintenance | 11,521,775 | 12,999,910 |
| Total | 18,673,017 | 20,868,624 |
| Equipment sales | 755,309 | 844,602 |
| ATM operation business | 1,358,104 | 1,763,367 |
| Total revenues | 54,396,959 | 57,172,218 |
| COST AND EXPENSES: | ||
| Cost of network services | 26,464,339 | 26,368,593 |
| Cost of systems integration | 15,765,185 | 17,940,019 |
| Cost of equipment sales | 681,162 | 738,497 |
| Cost of ATM operation business | 1,055,944 | 1,220,376 |
| Total cost | 43,966,630 | 46,267,485 |
| Sales and marketing | 4,162,559 | 4,563,106 |
| General and administrative | 3,037,201 | 3,673,931 |
| Research and development | 221,590 | 251,460 |
| Total cost and expenses | 51,387,980 | 54,755,982 |
| OPERATING INCOME | 3,008,979 | 2,416,236 |
| OTHER INCOME (EXPENSE): | ||
| Dividend income | 35,760 | 47,539 |
| Interest income | 12,801 | 11,238 |
| Interest expense | (132,467) | (122,524) |
| Foreign exchange gains (losses) | 139,285 | (9,381) |
| Net gain on sales of other investments | 82,852 | 5,317 |
| Net gain on other investments | 172,423 | -- |
| Other —net | 27,965 | 142,961 |
| Other income (expense) —net | 338,619 | 75,150 |
|
INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES |
3,347,598 | 2,491,386 |
| INCOME TAX EXPENSE | 1,243,173 | 1,074,409 |
| EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES | 127,358 | 69,233 |
| NET INCOME | 2,231,783 | 1,486,210 |
|
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
(26,912) | (41,946) |
|
NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. |
2,204,871 | 1,444,264 |
|
Six Months Ended September 30, 2013 |
Six Months Ended September 30, 2014 |
|
| NET INCOME PER SHARE | ||
| BASIC WEIGHTED-AVERAGE NUMBER OF SHARES (shares) | 42,683,242 | 45,942,291 |
| DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES (shares) | 42,734,376 | 46,008,298 |
|
BASIC WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs) |
85,366,484 | 91,884,582 |
|
DILUTED WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs) |
85,468,752 | 92,016,596 |
|
BASIC NET INCOME PER SHARE (JPY / U.S. Dollars / JPY) |
51.66 | 31.44 |
|
DILUTED NET INCOME PER SHARE (JPY / U.S. Dollars / JPY) |
51.59 | 31.39 |
|
BASIC NET INCOME PER ADS EQUIVALENT (JPY / U.S. Dollars / JPY) |
25.83 | 15.72 |
|
DILUTED NET INCOME PER ADS EQUIVALENT (JPY / U.S. Dollars / JPY) |
25.80 | 15.70 |
| Quarterly Consolidated Statements of Other Comprehensive Income | ||
|
Six Months Ended September 30, 2013 |
Six Months Ended September 30, 2014 |
|
|
Thousands of JPY |
Thousands of JPY |
|
| NET INCOME | 2,231,783 | 1,486,210 |
| Comprehensive income （loss）: | ||
| Foreign currency translation adjustments | 272,253 | (61,286) |
| Unrealized holding gain (loss) on securities | 178,865 | (844,772) |
| Defined benefit pension plans | 118 | 119 |
| Total comprehensive income | 2,683,019 | 580,271 |
| Less: Comprehensive income attributable to noncontrolling interests | (26,948) | (42,334) |
| Comprehensive income attributable to Internet Initiative Japan Inc. | 2,656,071 | 537,937 |
| Internet Initiative Japan Inc. | ||
| Quarterly Consolidated Statements of Cash Flows (Unaudited) | ||
| (For the six months ended September 30, 2013 and September 30, 2014) | ||
|
Six Months Ended September 30, 2013 |
Six Months Ended September 30, 2014 |
|
|
Thousands of JPY |
Thousands of JPY |
|
| OPERATING ACTIVITIES: | ||
| Net income | 2,231,783 | 1,486,210 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 4,238,476 | 4,683,596 |
| Provision for retirement and pension costs, less payments | 117,723 | 119,586 |
| Provision for (reversal of) allowance for doubtful accounts | (47,200) | 1,749 |
| Gain on sales of property and equipment | -- | (29,197) |
| Loss on disposal of property and equipment | 3,616 | 20,618 |
| Net gain on sales of other investments | (82,852) | (5,317) |
| Net gain on other investments | (172,423) | -- |
| Foreign exchange gains, net | (88,024) | (13,497) |
| Equity in net income of equity method investees, less dividends received | (127,358) | (36,893) |
| Deferred income tax expense | 169,584 | 230,734 |
| Others | 934 | 22,868 |
| Changes in operating assets and liabilities: | ||
| Decrease (increase) in accounts receivable | 2,136,106 | (234,475) |
| Decrease in net investment in sales-type lease — noncurrent | 64,975 | 255,129 |
| Increase in inventories | (758,645) | (393,126) |
| Increase in prepaid expenses | (933,077) | (719,839) |
| Decrease in other current and noncurrent assets | 152,072 | 250,742 |
| Decrease in accounts payable | (1,512,769) | (1,163,029) |
| Decrease in income taxes payable | (793,648) | (327,792) |
| Increase (decrease) in deferred income-noncurrent | (376,601) | 72,070 |
| Increase (decrease) in accrued expenses, other current and noncurrent liabilities | (527,057) | 1,124,436 |
| Net cash provided by operating activities | 3,695,615 | 5,344,573 |
| INVESTING ACTIVITIES: | ||
| Purchase of property and equipment | (2,783,991) | (4,010,347) |
| Proceeds from sales of property and equipment | 123,086 | 426,589 |
| Purchase of available-for-sale securities | (33,902) | -- |
| Purchase of other investments | (1,082,640) | (123,704) |
| Investment in an equity method investee | -- | (50,000) |
| Proceeds from sales of available-for-sale securities | 219,362 | -- |
| Proceeds from sales of other investments | 4,000 | 25,502 |
| Payments of guarantee deposits | (662,283) | (1,607,986) |
| Refund of guarantee deposits | 7,112 | 33,180 |
| Payments for refundable insurance policies | -- | (22,365) |
| Refund from insurance policies | 16,026 | -- |
| Proceeds from subsidies | -- | 200,000 |
| Other | (9,250) | (25,000) |
| Net cash used in investing activities | (4,202,480) | (5,154,131) |
|
Six Months Ended September 30, 2013 |
Six Months Ended September 30, 2014 |
|
|
Thousands of JPY |
Thousands of JPY |
|
| FINANCING ACTIVITIES: | ||
| Proceeds from issuance of short-term borrowings with initial maturities over three months | 200,000 | -- |
|
Repayments of short-term borrowings with initial maturities over three months and long-term borrowings |
(1,210,000) | (980,000) |
| Principal payments under capital leases | (1,972,457) | (2,082,890) |
| Dividends paid | (405,368) | (505,330) |
| Proceeds from issuance of common stock, net of issuance cost | 17,271,204 | -- |
| Other | (41) | 3 |
| Net cash provided by (used in) financing activities | 13,883,338 | (3,568,217) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 146,285 | 5,385 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 13,522,758 | (3,372,390) |
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 12,258,872 | 22,421,100 |
| CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 25,781,630 | 19,048,710 |
| ADDITIONAL CASH FLOW INFORMATION: | ||
| Interest paid | 132,774 | 123,414 |
| Income taxes paid | 1,533,720 | 1,334,786 |
| NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
| Acquisition of assets by entering into capital leases | 1,863,053 | 1,790,481 |
| Facilities purchase liabilities | 888,669 | 1,189,035 |
| Asset retirement obligation | 55,066 | 176,597 |
| Going Concern Assumption (Unaudited) | ||
| Nothing to be reported. | ||
| Material Changes In Shareholders' Equity (Unaudited) | ||
| Nothing to be reported. | ||
| Segment Information (Unaudited) | ||
| Business Segments: | ||
| Revenues: | ||
|
Six Months Ended September 30, 2013 |
Six Months Ended September 30, 2014 |
|
| Thousands of JPY | Thousands of JPY | |
| Network service and systems integration business | 53,295,762 | 55,607,418 |
| Customers | 53,038,855 | 55,408,851 |
| Intersegment | 256,907 | 198,567 |
| ATM operation business | 1,358,104 | 1,763,367 |
| Customers | 1,358,104 | 1,763,367 |
| Intersegment | -- | -- |
| Elimination | 256,907 | 198,567 |
| Consolidated total | 54,396,959 | 57,172,218 |
| Segment profit or loss: | ||
|
Six Months Ended September 30, 2013 |
Six Months Ended September 30, 2014 |
|
| Thousands of JPY | Thousands of JPY | |
| Network service and systems integration business | 2,829,032 | 2,021,020 |
| ATM operation business | 240,882 | 459,980 |
| Elimination | 60,935 | 64,764 |
| Consolidated operating income | 3,008,979 | 2,416,236 |
| Geographic information is not presented due to immateriality of revenue attributable to international operations. | ||
| Subsequent Events (Unaudited) | ||
| Nothing to be reported. |
2nd Quarter FY2014 Consolidated Financial Results (3 months)
The following tables are highlight data of 2nd Quarter FY2014 consolidated financial results (unaudited, from July 1, 2014 to September 30, 2014).
| Operating Results Summary | |||
| 2Q13 | 2Q14 |
YoY % Change |
|
| JPY millions | JPY millions | ||
| Total Revenues: | 27,956 | 29,620 | 6.0 |
| Network Services | 16,825 | 16,897 | 0.4 |
| Systems Integration (SI) | 9,981 | 11,411 | 14.3 |
| Equipment Sales | 437 | 378 | (13.3) |
| ATM Operation Business | 713 | 934 | 30.9 |
| Cost of Revenues: | 22,555 | 23,713 | 5.1 |
| Network Services | 13,223 | 13,155 | (0.5) |
| Systems Integration (SI) | 8,415 | 9,618 | 14.3 |
| Equipment Sales | 396 | 322 | (19.0) |
| ATM Operation Business | 521 | 618 | 18.7 |
| SG&A Expenses and R&D | 3,697 | 4,259 | 15.2 |
| Operating Income | 1,704 | 1,648 | (3.2) |
| Income before Income Tax Expense | 1,917 | 1,664 | (13.2) |
| Net Income attributable to IIJ | 1,251 | 953 | (23.8) |
| Network Services Revenues Breakdown | |||
| 2Q13 | 2Q14 |
YoY % Change |
|
| JPY millions | JPY millions | ||
| Internet Connectivity Service (Corporate Use) | 4,167 | 4,116 | (1.2) |
| IP Service | 2,587 | 2,484 | (4.0) |
| IIJ FiberAccess/F and IIJ DSL/F | 792 | 805 | 1.6 |
| IIJ Mobile Service | 731 | 771 | 5.4 |
| Others | 57 | 56 | (1.1) |
| Internet Connectivity Service (Home Use) | 1,459 | 1,797 | 23.2 |
| Under IIJ Brand | 525 | 933 | 77.7 |
| hi-ho | 759 | 703 | (7.4) |
| OEM | 175 | 161 | (8.0) |
| WAN Services | 6,308 | 5,971 | (5.3) |
| Outsourcing Services | 4,891 | 5,013 | 2.5 |
| Network Services Revenues | 16,825 | 16,897 | 0.4 |
Reconciliation of Non-GAAP Financial Measures
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 | ||
| 2Q13 | 2Q14 | |
| JPY millions | JPY millions | |
| Adjusted EBITDA | 3,871 | 4,020 |
| Depreciation and Amortization | (2,167) | (2,372) |
| Operating Income | 1,704 | 1,648 |
| Other Income (Expense) | 213 | 16 |
| Income Tax Expense | 706 | 722 |
| Equity in Net Income of Equity Method Investees | 62 | 35 |
| Net income | 1,273 | 977 |
| Less: Net income attributable to noncontrolling interests | (22) | (24) |
| Net Income attributable to IIJ | 1,251 | 953 |
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 | ||
| 2Q13 | 2Q14 | |
| JPY millions | JPY millions | |
| CAPEX, including capital leases | 1,754 | 3,170 |
| Acquisition of Assets by Entering into Capital Leases | 688 | 1,096 |
| Purchase of Property and Equipment | 1,065 | 2,074 |
| Internet Initiative Japan Inc. | ||
| Quarterly Consolidated Statements of Income (Unaudited) | ||
| (For the three months ended September 30, 2013 and September 30, 2014) | ||
|
Three Months Ended September 30, 2013 |
Three Months Ended September 30, 2014 |
|
|
Thousands of JPY |
Thousands of JPY |
|
| REVENUES: | ||
| Network services: | ||
| Internet connectivity services (enterprise) | 4,167,105 | 4,115,551 |
| Internet connectivity services (consumer) | 1,458,531 | 1,796,647 |
| WAN services | 6,308,549 | 5,971,196 |
| Outsourcing services | 4,891,009 | 5,012,956 |
| Total | 16,825,194 | 16,896,350 |
| Systems integration: | ||
| Systems Construction | 4,187,234 | 4,784,395 |
| Systems Operation and Maintenance | 5,793,403 | 6,626,747 |
| Total | 9,980,637 | 11,411,142 |
| Equipment sales | 436,616 | 378,381 |
| ATM operation business | 713,411 | 934,118 |
| Total revenues | 27,955,858 | 29,619,991 |
| COST AND EXPENSES: | ||
| Cost of network services | 13,222,659 | 13,155,152 |
| Cost of systems integration | 8,415,537 | 9,618,186 |
| Cost of equipment sales | 396,474 | 321,256 |
| Cost of ATM operation business | 520,842 | 618,131 |
| Total cost | 22,555,512 | 23,712,725 |
| Sales and marketing | 2,047,534 | 2,287,063 |
| General and administrative | 1,536,859 | 1,844,582 |
| Research and development | 112,446 | 127,445 |
| Total cost and expenses | 26,252,351 | 27,971,815 |
| OPERATING INCOME | 1,703,507 | 1,648,176 |
| OTHER INCOME (EXPENSE): | ||
| Dividend income | 8,649 | 22,189 |
| Interest income | 6,955 | 6,321 |
| Interest expense | (64,116) | (61,122) |
| Foreign exchange gains (losses) | 46,666 | 6,118 |
| Net gain on sales of other investments | 26,932 | 5,317 |
| Net gain on other investments | 172,423 | -- |
| Other—net | 16,060 | 37,029 |
| Other income (expense) — net | 213,569 | 15,852 |
|
INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES |
1,917,076 | 1,664,028 |
| INCOME TAX EXPENSE | 705,754 | 722,156 |
|
EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES |
61,404 | 35,329 |
| NET INCOME | 1,272,726 | 977,201 |
|
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
(21,665) | (24,008) |
|
NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC. |
1,251,061 | 953,193 |
|
Three Months Ended September 30, 2013 |
Three Months Ended September 30, 2014 |
|
| NET INCOME PER SHARE | ||
|
BASIC WEIGHTED-AVERAGE NUMBER OF SHARES (shares) |
44,804,204 | 45,942,291 |
|
DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES (shares) |
44,856,748 | 46,011,812 |
|
BASIC WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs) |
89,608,408 | 91,884,582 |
|
DILUTED WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs) |
89,713,496 | 92,023,624 |
|
BASIC NET INCOME PER SHARE (JPY / U.S. Dollars / JPY) |
27.92 | 20.75 |
|
DILUTED NET INCOME PER SHARE (JPY / U.S. Dollars / JPY) |
27.89 | 20.72 |
|
BASIC NET INCOME PER ADS EQUIVALENT (JPY / U.S. Dollars / JPY) |
13.96 | 10.37 |
|
DILUTED NET INCOME PER ADS EQUIVALENT (JPY / U.S. Dollars / JPY) |
13.95 | 10.36 |
| Internet Initiative Japan Inc. | ||
| Quarterly Consolidated Statements of Cash Flows (Unaudited) | ||
| (For the three months ended September 30, 2013 and September 30, 2014) | ||
|
Three Months Ended September 30, 2013 |
Three Months Ended September 30, 2014 |
|
|
Thousands of JPY |
Thousands of JPY |
|
| OPERATING ACTIVITIES: | ||
| Net income | 1,272,726 | 977,201 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||
| Depreciation and amortization | 2,167,716 | 2,371,510 |
| Provision for retirement and pension costs, less payments | 60,353 | 58,356 |
| Provision for (reversal of) allowance for doubtful accounts | (35,761) | 254 |
| Loss on disposal of property and equipment | 2,971 | 14,916 |
| Net gain on sales of other investments | (26,932) | (5,317) |
| Net gain on other investments | (172,423) | -- |
| Foreign exchange gains, net | (8,072) | (16,152) |
| Equity in net income of equity method investees, less dividends received | (61,404) | (2,989) |
| Deferred income tax expense (benefit) | (98,657) | 98,332 |
| Others | (10,471) | 17,000 |
| Changes in operating assets and liabilities: | ||
| Increase in accounts receivable | (786,378) | (2,145,722) |
| Decrease in net investment in sales-type lease―noncurrent | 67,556 | 106,234 |
| Increase in inventories | (553,097) | (125,328) |
| Decrease in prepaid expenses | 484,823 | 689,105 |
| Decrease (increase) in other current and noncurrent assets | 34,858 | (199,792) |
| Increase in accounts payable | 448,979 | 471,094 |
| Increase in income taxes payable | 695,246 | 585,207 |
| Increase in deferred income― noncurrent | 73,650 | 151,579 |
| Decrease in accrued expenses, other current and noncurrent liabilities | (1,388,312) | (555,917) |
| Net cash provided by operating activities | 2,167,371 | 2,489,571 |
| INVESTING ACTIVITIES: | ||
| Purchase of property and equipment | (1,065,478) | (2,074,430) |
| Proceeds from sales of property and equipment | 53,482 | 155,942 |
| Purchase of available-for-sale securities | (21,963) | -- |
| Purchase of other investments | (1,059,363) | (32,301) |
| Proceeds from sales of available-for-sale securities | 219,362 | -- |
| Proceeds from sales of other investments | -- | 17,615 |
| Payments of guarantee deposits | (1,310) | (71,218) |
| Refund of guarantee deposits | 2,192 | 25,822 |
| Payments for refundable insurance policies | -- | (11,189) |
| Refund from insurance policies | 16,026 | -- |
| Proceeds from subsidies | -- | 200,000 |
| Other | (5,815) | (25,000) |
| Net cash used in investing activities | (1,862,867) | (1,814,759) |
|
Three Months Ended September 30, 2013 |
Three Months Ended September 30, 2014 |
|
|
Thousands of JPY |
Thousands of JPY |
|
| FINANCING ACTIVITIES: | ||
|
Proceeds from issuance of short-term borrowings with initial maturities over three months |
200,000 | -- |
|
Repayments of short-term borrowings with initial maturities over three months and long-term borrowings |
(1,210,000) | (980,000) |
| Principal payments under capital leases | (991,296) | (1,079,066) |
|
Proceeds from issuance of common stock, net of issuance cost |
17,271,204 | -- |
| Net cash provided by (used in) financing activities | 15,269,908 | (2,059,066) |
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(69,242) | 11,917 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 15,505,170 | (1,372,337) |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD |
10,276,460 | 20,421,047 |
|
CASH AND CASH EQUIVALENTS, END OF THE PERIOD |
25,781,630 | 19,048,710 |
Note: The following information is provided to disclose Internet Initiative Japan Inc. ("IIJ") financial results (unaudited) for the six months ended September 30, 2014 ("1H14") in the form defined by the Tokyo Stock Exchange.
Consolidated Financial Results for the Six Months Ended September 30, 2014
[Under accounting principles generally accepted in the United States ("U.S. GAAP")]
November 7, 2014
| 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: November 14, 2014 | |
| Scheduled date for interim dividend payment: December 8, 2014 | 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 Six Months Ended September 30, 2014
(April 1, 2014 to September 30, 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 | % | |
| Six months ended September 30, 2014 | 57,172 | 5.1 | 2,416 | (19.7) | 2,491 | (25.6) | 1,444 | (34.5) |
| Six months ended September 30, 2013 | 54,397 | 6.4 | 3,009 | (7.8) | 3,348 | 5.4 | 2,205 | 9.9 |
(Note1) Total comprehensive income attributable to IIJ
Six months ended September 30, 2014: JPY538 million (down 79.7% YoY)
Six months ended September 30, 2013: JPY2,656 million (up 33.0% 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 | |
| Six months ended September 30, 2014 | 31.44 | 31.39 |
| Six months ended September 30, 2013 | 51.66 | 51.59 |
(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 September 30, 2014 | 103,222 | 60,283 | 59,973 | 58.1 |
| 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 | ||
(Note1) Changes to the latest forecasts released: 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 |
(Note1) Changes to the latest forecasts released: Yes
* Notes
| (1) Changes in Significant Subsidiaries for the six months ended September 30, 2014 | |
| (Changes in significant subsidiaries for the six months ended September 30, 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 September 30, 2014: | 46,701,000 shares |
| As of March 31, 2014: | 46,697,800 shares |
| 2) The number of treasury stock: | |
| As of September 30, 2014: | 758,709 shares |
| As of March 31, 2014: | 758,709 shares |
| 3) The weighted average number of shares outstanding: | |
| For the six months ended September 30, 2014: | 45,942,291 shares |
| For the six months ended September 30, 2013: | 42,683,242 shares |