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, 2016 ("1H15", from
April 1, 2015 to September 30, 2015).1
|
Highlights of Financial
Results for 1H15 |
|
|
Revenues |
JPY65,334 million (up 14.3% YoY) |
Operating Income |
JPY2,563 million (up 6.1% YoY) |
Net Income attributable to IIJ |
JPY1,652 million (up 14.4% YoY) |
|
Overview of 1H15 Financial Results and Business
Outlook
"This fiscal year's first six months revenue exceeded our
disclosed target and the operating income increased year over year
(YoY) as planned,2" said Eijiro Katsu, President and COO of IIJ.
"We achieved 14.3% revenue growth YoY in this first half with an
accelerated pace of revenue accumulation3 by which we absorbed an
annual operating cost increase along with human resources
enhancement and others."
"Mobile services and systems operation and maintenance continued
to be leading contributors of our revenues growth. The growth of
mobile subscription exceeded our plan and increased to approx. 934
thousand as of September 30, 2015; an increase of approx. 261
thousand in six months. In addition to the growing consumer
subscription, the contribution from MVNE4 transactions has become
quite visible. We maintain our view that the large shift from
traditional mobile carriers to inexpensive MVNOs5 to continue over
the next few years. Our strategy is to continuously gather mobile
traffic from both consumer and blue-chip corporates, who are
gradually becoming interested in M2M6 and IoT7, and to benefit from
having a large-scale mobile infrastructure by improving its
utilization. Systems operation and maintenance revenues also showed
steady and continuous growth, which is supported by the migration
of increasing number and volume of constructed systems to the
operation and maintenance phase under the favorable market
situation," continued Katsu.
"For the remaining half, we'd like to further enhance revenue
accumulation by executing our growth strategies which include
leveraging new network and cloud services,8 capturing increasing
security-related demands and accumulating systems integration
projects towards 4Q15," said Katsu.
"We expect our mobile business to certainly become a significant
one, together with our current network services for corporates, in
the middle to long term. Also, our value of maintaining and
operating network business should become more eminent along with
the advancement of network usage including more considerable use of
cloud systems, distributing high-definition contents such as 4K and
8K9 over Internet. Slow as always, these changes are tailwind for
us. We'd like to invest and develop innovative network services
continuously to maintain our competitive advantages and achieve
sustainable growth," concluded Koichi Suzuki, Founder and CEO of
IIJ.
1 Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with U.S. GAAP.,
unaudited and consolidated.
2 2Q15 three months operating income decreased from 2Q14
three months because of a temporary positive impact of approx.
JPY0.29 billion in 2Q14 due for applying our supposed annual
decrease rate of NTT Docomo's mobile interconnectivity charge. We
also had the same positive impact of approx. JPY0.27 billion in
1Q15.
3 Three-month revenue growth rate year over year: 8.2% in
3Q14, 11.7% in 4Q14, 14.2% in 1Q15 and 14.3% in 2Q15.
4 Mobile Virtual Network Enabler (MVNE)
provides business and service infrastructure to MVNOs.
5 Mobile Virtual Network Operator (MVNO)
borrows mobile infrastructure from mobile network operators to
offer mobile related services.
6 Machine to Machine (M2M) enables devices
connected to network to exchange information automatically and
perform designed actions.
7 Internet of Things (IoT) enables not only
physical objects but any "things" connected to network to exchange
information automatically.
8 Our new network service, "IIJ Omnibus Service," which
incorporates SDN and NFV technologies, automatically offers several
network elements was released in September 2015. Our new cloud
services, "IIJ GIO Infrastructure P2," offering reliable public
cloud infrastructure with increased processing performance as well
as private cloud infrastructure will be launched in November
2015.
9 4K and 8K refer to display devices or
contents having very high resolution over 4,000 pixels.
Ultra-high-definition televisions known as super Hi-Vision and
Ultra HD television are becoming popular these days.
1H15 Financial Results
Summary
Operating Results
Summary |
|
1H14 |
1H15 |
YoY % Change |
|
JPY millions |
JPY millions |
|
Total revenues |
57,172 |
65,334 |
14.3 |
Network
services |
33,695 |
38,000 |
12.8 |
Systems
integration (SI) |
20,869 |
23,725 |
13.7 |
Equipment
sales |
845 |
1,638 |
93.9 |
ATM operation
business |
1,763 |
1,971 |
11.8 |
Total costs |
46,267 |
53,626 |
15.9 |
Network
services |
26,369 |
30,501 |
15.7 |
Systems
integration (SI) |
17,940 |
20,341 |
13.4 |
Equipment
sales |
738 |
1,480 |
100.4 |
ATM operation
business |
1,220 |
1,304 |
6.9 |
SG&A expenses
and R&D |
8,489 |
9,145 |
7.7 |
Operating income |
2,416 |
2,563 |
6.1 |
Income before income tax
expense |
2,491 |
2,647 |
6.2 |
Net income attributable to
IIJ |
1,444 |
1,652 |
14.4 |
Segment Results
Summary |
|
1H14 |
1H15 |
|
JPY millions |
JPY millions |
Total revenues |
57,172 |
65,334 |
Network services
and SI business |
55,607 |
63,557 |
ATM operation
business |
1,763 |
1,971 |
Elimination |
(198) |
(194) |
Operating income |
2,416 |
2,563 |
Network service
and SI business |
2,021 |
2,056 |
ATM operation
business |
460 |
576 |
Elimination |
(65) |
(69) |
We have omitted segment analysis because most of our revenues
are dominated by network services and systems integration (SI)
business.
1H15 Results of Operation
Revenues
Total revenues were JPY65,334 million, up 14.3% YoY (JPY57,172
million in 1H14).
Network services revenue was JPY38,000 million, up 12.8%
YoY.
Revenues for Internet connectivity services for enterprise were
JPY8,357 million, up 1.8% YoY from JPY8,208 million for 1H14. There
were decrease in IP services revenues including data center
connectivity services revenues but there were increase in
enterprise mobile service revenues.
Revenues for Internet connectivity services for consumer were
JPY6,596 million, up 87.9% YoY from JPY3,510 million for 1H14,
mainly due to the 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.
WAN services revenues were JPY12,558 million, up 5.0% YoY
compared to JPY11,956 million for 1H14.
Outsourcing services revenues were JPY10,489
million, up 4.7% YoY from JPY10,021 million for 1H14.
Network Services
Revenues Breakdown |
|
1H14 |
1H15 |
YoY % Change |
|
JPY millions |
JPY millions |
|
Internet connectivity services
(Enterprise) |
8,208 |
8,357 |
1.8 |
IP
service*1 |
4,984 |
4,773 |
(4.2) |
IIJ FiberAccess/F
and IIJ DSL/F |
1,588 |
1,538 |
(3.2) |
IIJ Mobile
service (Enterprise) |
1,523 |
1,912 |
25.6 |
Others |
113 |
134 |
18.4 |
Internet connectivity services
(Consumer) |
3,510 |
6,596 |
87.9 |
IIJ*2 |
2,088 |
5,276 |
152.6 |
hi-ho |
1,422 |
1,320 |
(7.1) |
WAN services |
11,956 |
12,558 |
5.0 |
Outsourcing
services |
10,021 |
10,489 |
4.7 |
Total network
services |
33,695 |
38,000 |
12.8 |
*1 IP service revenues include
revenues from the data center connectivity service. |
*2 From 1Q15, what were formerly
known as "Under IIJ brand" and "OEM" are now merged under a newly
created category "IIJ." |
|
|
Number of
Contracts and Subscription for Connectivity
Services*1 |
|
as of Sep. 30, 2014 |
as of Sep. 30,
2015 |
YoY Change |
Internet connectivity services
(Enterprise) |
204,885 |
348,345 |
143,460 |
IP service
(-99Mbps) |
806 |
715 |
(91) |
IP service
(100Mbps-999Mbps) |
487 |
513 |
26 |
IP service
(1Gbps-) |
305 |
343 |
38 |
IIJ Data center
connectivity service |
289 |
272 |
(17) |
IIJ FiberAccess/F
and IIJ DSL/F |
58,845 |
70,071 |
11,226 |
IIJ Mobile
service (Enterprise) *2 |
142,832 |
275,146 |
132,314 |
Others |
1,321 |
1,285 |
(36) |
Internet connectivity services
(Consumer)*2 |
697,243 |
1,078,798 |
381,555 |
IIJ*2 |
540,205 |
926,873 |
386,668 |
hi-ho*2 |
157,038 |
151,925 |
(5,113) |
Total contracted
bandwidth*3 |
1,633.0Gbps |
1,982.4Gbps |
349.4Gbps |
*1. Numbers in the table show
number of contracts except for "IIJ Mobile service (Enterprise),"
"IIJ" and "hi-ho" which show number of subscriptions. |
*2. The table for "Number of
Contracts and Subscription for Connectivity Services" has the
following changes from 1Q15: |
(1) Number of
subscriptions related to "IIJ Mobile MVNO platform services" are
classified under "IIJ Mobile service (Enterprise)" in Internet
connectivity services (Enterprise). They were classified under
"OEM" in Internet connectivity services (Consumer). |
(2) A counting unit of mobile
related services has been changed from number of contracts to
number of subscriptions. |
(3) Under Internet
connectivity services (Consumer), what were formerly known as
"Under IIJ brand" and "OEM" are merged under a newly created
category "IIJ." |
(4) Number of subscriptions
for prepaid SIM cards are added to "IIJ" in Internet connectivity
services (Consumer). |
*3. Total contracted bandwidths
are calculated by multiplying number of contracts for IP service,
data center connectivity service, IIJ FiberAccess/F and IIJ DSL/F
of Internet connectivity services (Enterprise) by contracted
bandwidths respectively. |
SI revenues were JPY23,725 million, up 13.7%
YoY.
Systems construction revenue, a one-time revenue, was JPY7,643
million, down 2.9% YoY. Systems operation and maintenance revenue,
a recurring revenue, was JPY16,082 million, up 23.7% YoY, mainly
due to the accumulation of projects shifted from systems
construction to systems operation and maintenance phase.
Orders received for SI and equipment sales totaled JPY28,733
million, up 17.5% YoY; orders received for systems construction and
equipment sales were JPY13,267 million, up 33.8% YoY and orders
received for systems operation and maintenance were JPY15,446
million, up 6.5% YoY. In 1H15, we received a systems construction
order related to a large scale network integration project which
amounts to approx. JPY2.1 billion.
Order backlog for SI and equipment sales as of September 30,
2015 amounted to JPY32,422 million, up 19.9% YoY; order backlog for
systems construction and equipment sales was JPY8,720 million, up
38.3% YoY and order backlog for systems operation and maintenance
was JPY23,702 million, up 14.3% YoY.
Equipment sales revenues were JPY1,638 million, up 93.9% YoY
mainly due to an increase in selling mobile devices.
ATM operation business revenues were JPY1,971 million, up 11.8%
YoY. The increase was in accordance with the increase in the number
of placed ATMs. As of September 30, 2015, 1,097 ATMs have been
placed.
Cost and expense
Total cost of revenues was JPY53,626 million, up 15.9% YoY
(JPY46,267 million in 1H14).
Cost of network services revenue was JPY30,501 million, up 15.7%
YoY. There was an increase in cost related to mobile services along
with the increase in mobile services revenue. Gross margin was
JPY7,498 million, up 2.3% YoY and gross margin ratio was 19.7%.
Cost of SI revenues was JPY20,341 million, up 13.4% YoY. The
increase was mainly due to an increase in outsourcing-related and
personnel-related costs. Gross margin was JPY3,385 million, up
15.6% YoY and gross margin ratio was 14.3%.
Cost of equipment sales revenues was JPY1,480 million, up 100.4%
YoY. Gross margin was JPY158 million and gross margin ratio was
9.6%.
Cost of ATM operation business revenues was JPY1,304 million, up
6.9% YoY in accordance with increase in the number of placed ATMs.
Gross margin was JPY666 million and gross margin ratio was
33.8%.
SG&A and R&D expenses
SG&A and R&D expenses in total were JPY9,145 million, up
7.7% YoY (JPY8,489 million in 1H14).
Sales and marketing expenses were JPY5,166 million, up 13.2%
YoY. The increase was mainly due to the increase in
personnel-related expenses and sales commission expenses,
especially related to mobile services.
General and administrative expenses were JPY3,747 million, up
2.0% YoY. The increase was mainly due to the increase in
personnel-related expenses.
Research and development expenses were JPY232 million, down 7.7%
YoY.
Operating income
Operating income was JPY2,563 million, up 6.1% YoY (JPY2,416
million for 1H14).
Other income (expenses)
Other income (expenses) was an income of JPY84 million (an
income of JPY75 million for 1H14), mainly due to distribution from
fund investment of JPY115 million (included in other-net of JPY124
million) and dividend income of JPY74 million from other
investments and interest expense of JPY112 million.
Income before income tax expenses
Income before income tax expenses was JPY2,647 million, up 6.2%
YoY (JPY2,491 million for 1H14) .
Net income
Income tax expense was JPY1,040 million (JPY1,074 million for
1H14).
Equity in net income of equity method investees was JPY137
million (JPY69 million for 1H14), mainly due to net income of
Internet Multifeed Co.
As a result of the above, net income was JPY1,744 million, up
17.4% YoY (JPY1,486 million for 1H14).
Net income attributable to IIJ
Net income attributable to non-controlling interests was JPY92
million, mainly related to net income of Trust Networks Inc. (JPY42
million for 1H14).
Net income attributable to IIJ was JPY1,652 million, up 14.4%
YoY (JPY1,444 million for 1H14).
1H15 Financial Condition
Balance sheets
As of September 30, 2015, the balance of total assets was
JPY110,806 million, increased by JPY2,101 million from the balance
as of March 31, 2015 of JPY108,705 million.
As for current assets as of September 30, 2015, as compared to
the respective balances as of March 31, 2015, accounts receivable
decreased by JPY2,184 million, prepaid expenses increased by
JPY1,170 million, inventories increased by JPY830 million, and cash
and cash equivalents decreased by JPY995 million. As for noncurrent
assets as of September 30, 2015, as compared to the respective
balance as of March 31, 2015, property and equipment increased by
JPY3,281 million. As for current liabilities as of September 30,
2015, as compared to the respective balances as of March 31, 2015,
accounts payable increased by JPY533 million and income taxes
payable increased by JPY300 million.
As for the balances of capital lease obligations as of September
30, 2015, as compared to the respective balances as of March 31,
2015, capital lease obligations-current portion decreased by JPY33
million to JPY3,489 million and capital lease
obligations-noncurrent increased by JPY637 million to JPY4,978
million.
As of September 30, 2015, the balance of other investments
decreased by JPY266 million to JPY6,395 million. The breakdown of
other investments were JPY4,103 million in available-for-sale
securities, JPY1,313 million in investments in funds, including
some through a trust, and JPY979 million in nonmarketable equity
securities.
As of September 30, 2015, 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 JPY3,611 million.
Total IIJ shareholders' equity as of September 30, 2015 compared
to the balance as of March 31, 2015, increased by JPY1,015 million
to JPY63,519 million. IIJ shareholders' equity ratio (total IIJ
shareholders' equity divided by total assets) as of September 30,
2015 was 57.3%.
Cash flows
Cash and cash equivalents as of September 30, 2015 were
JPY20,098 million compared to JPY19,049 million as of September 30,
2014.
Net cash provided by operating activities for 1H15 was JPY6,080
million compared to net cash provided by operating activities of
JPY5,345 million for 1H14. There were Net income of JPY1,744
million, depreciation and amortization of JPY 4,800 and payments of
JPY584 million due to changes in operating assets and
liabilities.
Net cash used in investing activities for 1H15 was JPY4,565
million compared to net cash used in investing activities of
JPY5,154 million for 1H14, mainly due to payments for purchase of
property and equipment of JPY5,321 million (JPY4,010 million for
1H14).
Net cash used in financing activities for 1H15 was JPY2,525
million compared to net cash used in financing activities of
JPY3,568 million for 1H14, mainly due to principal payments under
capital leases of JPY2,020 million (JPY2,083 million for 1H14) and
FY2014 year-end dividends payments of JPY505 million (JPY505
million for 1H14).
Prospects for the Fiscal Year Ending March 31,
2016
Due to seasonal factors, our financial results tend to be strong
in the second half and strongest in fourth quarter every fiscal
year. 1H15 revenues exceeded our disclosed target and operating
income resulted almost as our plan. Our FY2015 financial targets
announced on May 15, 2015 remain unchanged.
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 |
|
1H14 |
1H15 |
|
JPY millions |
JPY millions |
Adjusted EBITDA |
7,100 |
7,363 |
Depreciation and
Amortization |
(4,684) |
(4,800) |
Operating Income |
2,416 |
2,563 |
Other Income |
75 |
84 |
Income Tax
Expense |
1,074 |
1,040 |
Equity in Net Income of Equity
Method Investees |
69 |
137 |
Net income |
1,486 |
1,744 |
Less: Net income attributable
to noncontrolling interests |
(42) |
(92) |
Net Income attributable to
IIJ |
1,444 |
1,652 |
|
CAPEX |
|
1H14 |
1H15 |
|
JPY millions |
JPY millions |
CAPEX, including capital
leases |
5,800 |
7,943 |
Acquisition of
Assets by Entering into Capital Leases |
1,790 |
2,622 |
Purchase of
Property and Equipment |
4,010 |
5,321 |
Presentation
Presentation materials will be posted on our web site
(http://www.iij.ad.jp/en/ir/) on November 9, 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
companies provide total network solutions that mainly cater to
high-end corporate customers. IIJ's services include high-quality
Internet connectivity services, systems integration, cloud
computing services, security services and mobile services.
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 revenues,
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 but not limited to: a decrease of corporate
spending or capital expenditure due to depression in the Japanese
economy and.or corporate earnings decreased; an inability to
achieve anticipated results and cause negative impact on
profitability; a possibility less of reliability for our services
and loss of business changes due to interruption or suspension of
our services; an excess increase and fluctuation in network related
costs, mobile-related costs, outsourcing costs and personnel cost
etc.; a possibility to lose business opportunity due to our
inadequate resources and personnel and others; an increase in
competition and strong pricing pressure; the recording of an
impairment loss as a result of an impairment test on the
non-amortized intangible assets such as goodwill: a decline in
value and trading value of our holding securities. Please refer to
IIJ's filings on Form 20-F of its annual report and other filings
with the United States Securities and Exchange Commission for other
risks.
Internet Initiative
Japan Inc. |
Consolidated Balance
Sheets (Unaudited) |
(As of March 31, 2015
and September 30, 2015) |
|
|
|
|
|
As of March 31, 2015 |
As of September 30, 2015 |
|
Thousands of JPY |
Thousands of JPY |
ASSETS |
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
21,093,633 |
20,098,469 |
Accounts receivable, net of allowance for
doubtful accounts of JPY 54,590 thousand and JPY 54,926 thousand at
March 31, 2015 and September 30, 2015, respectively |
22,251,818 |
20,067,416 |
Inventories |
1,229,463 |
2,059,277 |
Prepaid expenses |
3,691,643 |
4,862,096 |
Deferred tax assets—current |
1,547,474 |
1,554,586 |
Other current assets, net of allowance
for doubtful accounts of JPY 720 thousand and JPY 14,096 thousand
at March 31, 2015 and September 30, 2015, respectively |
2,272,605 |
2,599,874 |
Total current assets |
52,086,636 |
51,241,718 |
INVESTMENTS IN EQUITY METHOD INVESTEES |
2,560,557 |
2,657,472 |
OTHER INVESTMENTS |
6,660,706 |
6,394,974 |
PROPERTY AND EQUIPMENT, net of accumulated
depreciation and amortization of JPY 39,591,769 thousand and JPY
42,300,526 thousand at March 31, 2015 and September 30, 2015,
respectively |
29,370,054 |
32,650,992 |
GOODWILL |
6,169,609 |
6,169,609 |
OTHER INTANGIBLE ASSETS—Net |
3,941,279 |
3,747,911 |
GUARANTEE DEPOSITS |
2,800,201 |
2,814,942 |
DEFERRED TAX ASSETS—Noncurrent |
471,087 |
351,672 |
NET INVESTMENT IN SALES-TYPE
LEASES—Noncurrent |
762,159 |
765,422 |
Prepaid expenses—Noncurrent |
2,914,375 |
3,157,606 |
OTHER ASSETS, net of allowance for doubtful
accounts of JPY 92,935 thousand and JPY 61,599 thousand at
March 31, 2015 and September 30, 2015, respectively |
968,652 |
853,947 |
TOTAL |
108,705,315 |
110,806,265 |
|
|
|
|
|
|
As of March 31, 2015 |
As of September 30, 2015 |
|
Thousands of JPY |
Thousands of JPY |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
CURRENT LIABILITIES: |
|
|
Short-term borrowings |
9,250,000 |
9,250,000 |
Capital lease obligations—current
portion |
3,522,113 |
3,489,190 |
Accounts payable—trade |
12,182,908 |
11,747,564 |
Accounts payable—other |
1,442,810 |
2,411,321 |
Income taxes payable |
499,104 |
799,075 |
Accrued expenses |
2,968,139 |
3,131,491 |
Deferred income—current |
2,143,480 |
2,341,338 |
Other current liabilities |
1,732,781 |
909,451 |
Total current liabilities |
33,741,335 |
34,079,430 |
CAPITAL LEASE OBLIGATIONS—Noncurrent |
4,340,421 |
4,977,732 |
ACCRUED RETIREMENT AND PENSION
COSTS—Noncurrent |
2,792,617 |
2,863,027 |
DEFERRED TAX LIABILITIES—Noncurrent |
1,097,650 |
1,029,062 |
DEFERRED INCOME—Noncurrent |
2,943,975 |
2,847,861 |
OTHER NONCURRENT LIABILITIES |
945,537 |
1,054,506 |
Total Liabilities |
45,861,535 |
46,851,618 |
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
Common-stock —authorized, 75,520,000
shares; issued and outstanding, 46,701,000 shares at March
31, 2015 |
25,499,857 |
25,509,499 |
—authorized, 75,520,000 shares; issued
and outstanding, 46,711,400 shares at September 30, 2015 |
Additional paid-in capital |
36,014,128 |
36,031,959 |
Retained earnings (Accumulated
deficit) |
(556,162) |
590,972 |
Accumulated other comprehensive
income |
1,938,649 |
1,778,977 |
Treasury stock —758,709 shares held by
the company at March 31, 2015 and September 30, 2015,
respectively |
(392,070) |
(392,070) |
Total Internet Initiative Japan Inc.
shareholders' equity |
62,504,402 |
63,519,337 |
NONCONTROLLING INTERESTS |
339,378 |
435,310 |
Total equity |
62,843,780 |
63,954,647 |
TOTAL |
108,705,315 |
110,806,265 |
|
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, 2014 and September 30, 2015) |
|
|
|
Six Months Ended September 30,
2014 |
Six Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
REVENUES: |
|
|
Network services: |
|
|
Internet connectivity services
(enterprise) |
8,207,981 |
8,356,668 |
Internet connectivity services
(consumer) |
3,510,389 |
6,596,559 |
WAN services |
11,956,408 |
12,557,807 |
Outsourcing services |
10,020,847 |
10,488,529 |
Total |
33,695,625 |
37,999,563 |
Systems integration: |
|
|
Systems construction |
7,868,714 |
7,643,200 |
Systems operation and maintenance |
12,999,910 |
16,082,385 |
Total |
20,868,624 |
23,725,585 |
Equipment sales |
844,602 |
1,638,023 |
ATM operation business |
1,763,367 |
1,970,563 |
Total revenues |
57,172,218 |
65,333,734 |
COST AND EXPENSES: |
|
|
Cost of network services |
26,368,593 |
30,501,305 |
Cost of systems integration |
17,940,019 |
20,340,583 |
Cost of equipment sales |
738,497 |
1,480,124 |
Cost of ATM operation business |
1,220,376 |
1,304,136 |
Total cost |
46,267,485 |
53,626,148 |
Sales and marketing |
4,563,106 |
5,165,482 |
General and administrative |
3,673,931 |
3,746,825 |
Research and development |
251,460 |
232,194 |
Total cost and expenses |
54,755,982 |
62,770,649 |
OPERATING INCOME |
2,416,236 |
2,563,085 |
OTHER INCOME (EXPENSE): |
|
|
Dividend income |
47,539 |
74,208 |
Interest income |
11,238 |
11,112 |
Interest expense |
(122,524) |
(111,560) |
Foreign exchange losses |
(9,381) |
(14,066) |
Net gain on sales of other
investments |
5,317 |
-- |
Other —net |
142,961 |
124,178 |
Other income—net |
75,150 |
83,872 |
INCOME FROM OPERATIONS BEFORE INCOME TAX
EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD
INVESTEES |
2,491,386 |
2,646,957 |
INCOME TAX EXPENSE |
1,074,409 |
1,039,885 |
EQUITY IN NET INCOME OF EQUITY METHOD
INVESTEES |
69,233 |
137,401 |
NET INCOME |
1,486,210 |
1,744,473 |
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS |
(41,946) |
(91,974) |
NET INCOME ATTRIBUTABLE TO INTERNET
INITIATIVE JAPAN INC. |
1,444,264 |
1,652,499 |
|
|
Six Months Ended September 30,
2014 |
Six Months Ended September 30,
2015 |
NET INCOME PER SHARE |
|
|
BASIC WEIGHTED-AVERAGE NUMBER OF SHARES
(shares) |
45,942,291 |
45,947,519 |
DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES
(shares) |
46,008,298 |
46,035,832 |
BASIC WEIGHTED-AVERAGE NUMBER OF ADS
EQUIVALENTS (ADSs) |
91,884,582 |
91,895,038 |
DILUTED WEIGHTED-AVERAGE NUMBER OF ADS
EQUIVALENTS (ADSs) |
92,016,596 |
92,071,664 |
BASIC NET INCOME PER
SHARE (JPY) |
31.44 |
35.96 |
DILUTED NET INCOME PER
SHARE (JPY) |
31.39 |
35.90 |
BASIC NET INCOME PER ADS
EQUIVALENT (JPY) |
15.72 |
17.98 |
DILUTED NET INCOME PER
ADS EQUIVALENT (JPY) |
15.70 |
17.95 |
|
|
|
|
Quarterly
Consolidated Statements of Comprehensive Income
(Unaudited) |
|
Six Months Ended September 30,
2014 |
Six Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
NET INCOME |
1,486,210 |
1,744,473 |
Other comprehensive income (loss), net of
tax: |
|
|
Foreign currency translation
adjustments |
(61,286) |
20,692 |
Unrealized holding loss on
securities |
(844,772) |
(175,575) |
Defined benefit pension plans |
119 |
(831) |
Total comprehensive income |
580,271 |
1,588,759 |
Less: Comprehensive income attributable to
noncontrolling interests |
(42,334) |
(95,932) |
Comprehensive income attributable to
Internet Initiative Japan Inc. |
537,937 |
1,492,827 |
|
Internet Initiative
Japan Inc. |
Quarterly Consolidated
Statements of Cash Flows (Unaudited) |
(For the Six months
ended September 30, 2014 and September 30, 2015) |
|
|
|
|
Six Months Ended September 30,
2014 |
Six Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
OPERATING ACTIVITIES: |
|
|
Net income |
1,486,210 |
1,744,473 |
Adjustments to reconcile net income to
net cash provided by operating activities: |
|
|
Depreciation and amortization |
4,683,596 |
4,800,290 |
Provision for retirement and pension
costs—less payments |
119,586 |
70,410 |
Provision for allowance for doubtful
accounts |
1,749 |
23,312 |
Gain on sales of property and
equipment |
(29,197) |
(20,942) |
Loss on disposal of property and
equipment |
20,618 |
31,852 |
Net gain on sales of other
investments |
(5,317) |
-- |
Foreign exchange losses (gains)—net |
(13,497) |
984 |
Equity in net income of equity method
investees, less dividends received |
(36,893) |
(88,891) |
Deferred income tax expense |
230,734 |
117,673 |
Other |
22,868 |
(15,046) |
Changes in operating assets and
liabilities: |
|
|
Decrease (increase) in accounts
receivable |
(234,475) |
2,165,231 |
Decrease (increase) in net investment in
sales-type lease — noncurrent |
255,129 |
(3,263) |
Increase in inventories |
(393,126) |
(829,251) |
Increase in prepaid expenses |
(719,839) |
(1,166,908) |
Decrease (increase) in other current and
noncurrent assets |
250,742 |
(284,569) |
Decrease in accounts payable |
(1,163,029) |
(352,766) |
Increase (decrease) in income taxes
payable |
(327,792) |
299,927 |
Increase in accrued expenses |
262,809 |
160,381 |
Increase in deferred income—current |
402,114 |
214,092 |
Increase (decrease) in deferred
income—noncurrent |
72,070 |
(63,742) |
Increase (decrease) in
other current and noncurrent liabilities |
459,513 |
(723,169) |
Net cash provided by
operating activities |
5,344,573 |
6,080,078 |
INVESTING ACTIVITIES: |
|
|
Purchase of property and equipment |
(4,010,347) |
(5,321,194) |
Proceeds from sales of property and
equipment |
426,589 |
489,963 |
Purchase of available-for-sale
securities |
-- |
(59,490) |
Purchase of other investments |
(123,704) |
(246,982) |
Investment in an equity method
investee |
(50,000) |
(39,974) |
Proceeds from sales of available-for-sale
securities |
-- |
141,235 |
Proceeds from sales of other
investments |
25,502 |
302,906 |
Payments of guarantee deposits |
(1,607,986) |
(17,062) |
Refund of guarantee deposits |
33,180 |
4,318 |
Payments for refundable insurance
policies |
(22,365) |
(28,181) |
Refund from insurance policies |
-- |
10,108 |
Proceeds from subsidies |
200,000 |
200,000 |
Other |
(25,000) |
(678) |
Net cash used in
investing activities |
(5,154,131) |
(4,565,031) |
|
|
|
|
|
Six Months Ended September 30,
2014 |
Six Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
FINANCING ACTIVITIES: |
|
|
Proceeds from issuance of short-term
borrowings with initial maturities over three months |
-- |
1,500,000 |
Repayments of short-term borrowings with
initial maturities over three months and long-term
borrowings |
(980,000) |
(1,500,000) |
Principal payments under capital
leases |
(2,082,890) |
(2,019,755) |
Dividends paid |
(505,330) |
(505,365) |
Other |
3 |
10 |
Net cash used in
financing activities |
(3,568,217) |
(2,525,110) |
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS |
5,385 |
14,899 |
|
|
|
NET DECREASE IN CASH AND CASH
EQUIVALENTS |
(3,372,390) |
(995,164) |
CASH AND CASH
EQUIVALENTS, BEGINNING OF THE PERIOD |
22,421,100 |
21,093,633 |
CASH AND CASH
EQUIVALENTS, END OF THE PERIOD |
19,048,710 |
20,098,469 |
|
ADDITIONAL CASH FLOW INFORMATION: |
|
|
Interest paid |
123,414 |
111,834 |
Income taxes paid |
1,334,786 |
657,294 |
|
|
|
NONCASH INVESTING AND FINANCING
ACTIVITIES: |
|
|
Acquisition of assets by entering into
capital leases |
1,790,481 |
2,622,120 |
Facilities purchase liabilities |
1,189,035 |
2,411,321 |
Asset retirement obligation |
176,597 |
7,349 |
|
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,
2014 |
Six Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
Network service and systems integration
business |
55,607,418 |
63,557,271 |
Customers |
55,408,851 |
63,363,171 |
Intersegment |
198,567 |
194,100 |
ATM operation business |
1,763,367 |
1,970,563 |
Customers |
1,763,367 |
1,970,563 |
Intersegment |
-- |
-- |
Elimination |
(198,567) |
(194,100) |
Consolidated total |
57,172,218 |
65,333,734 |
|
|
Segment profit or
loss: |
|
Six Months Ended September 30,
2014 |
Six Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
Network service and systems integration
business |
2,021,020 |
2,056,041 |
ATM operation business |
459,980 |
576,450 |
Elimination |
(64,764) |
(69,406) |
Consolidated operating income |
2,416,236 |
2,563,085 |
|
Geographic information is not
presented due to immateriality of revenue attributable to
international operations. |
Subsequent Events
(Unaudited)
Nothing to be reported.
Second Quarter FY2015 Consolidated Financial Results (3
months)
The following tables are highlight data of 2nd Quarter FY2015 (3
months) consolidated financial results (unaudited, for the three
months ended September 30, 2015).
Operating Results
Summary |
|
2Q14 |
2Q15 |
YoY % Change |
|
JPY millions |
JPY millions |
|
Total Revenues: |
29,620 |
33,870 |
14.3 |
Network
Services |
16,897 |
19,519 |
15.5 |
Systems
Integration (SI) |
11,411 |
12,652 |
10.9 |
Equipment
Sales |
378 |
692 |
82.9 |
ATM Operation
Business |
934 |
1,007 |
7.8 |
Cost of Revenues: |
23,713 |
27,821 |
17.3 |
Network
Services |
13,155 |
15,799 |
20.1 |
Systems
Integration (SI) |
9,618 |
10,750 |
11.8 |
Equipment
Sales |
322 |
622 |
93.5 |
ATM Operation
Business |
618 |
650 |
5.2 |
SG&A Expenses and
R&D |
4,259 |
4,627 |
8.6 |
Operating Income |
1,648 |
1,422 |
(13.7) |
Income before Income Tax
Expense |
1,664 |
1,369 |
(17.7) |
Net Income attributable to
IIJ |
953 |
931 |
(2.3) |
|
|
Network Service
Revenue Breakdown |
|
2Q14 |
2Q15 |
YoY % Change |
|
JPY millions |
JPY millions |
|
Internet
Connectivity Service (Enterprise) |
4,116 |
4,289 |
4.2 |
IP
Service*1 |
2,484 |
2,432 |
(2.1) |
IIJ
FiberAccess/F and IIJ DSL/F |
805 |
767 |
(4.8) |
IIJ
Mobile Service |
771 |
1,023 |
32.8 |
Others |
56 |
67 |
19.6 |
Internet
Connectivity Service (Consumer) |
1,797 |
3,495 |
94.5 |
IIJ*2 |
1,094 |
2,843 |
159.8 |
hi-ho |
703 |
652 |
(7.2) |
WAN
Services |
5,971 |
6,342 |
6.2 |
Outsourcing
Services |
5,013 |
5,393 |
7.6 |
Network Services
Revenues |
16,897 |
19,519 |
15.5 |
*1 IP service revenues include
revenues from the data center connectivity service. |
*2 From 1Q15, what were formerly
known as "Under IIJ brand" and "OEM" are now merged under a newly
created category "IIJ." |
Reconciliation of Non-GAAP Financial Measures
(2nd Quarter FY2015 (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 |
|
2Q14 |
2Q15 |
|
JPY millions |
JPY millions |
Adjusted EBITDA |
4,020 |
3,883 |
Depreciation and
Amortization |
(2,372) |
(2,461) |
Operating Income |
1,648 |
1,422 |
Other Income
(Expense) |
16 |
(53) |
Income Tax Expense
(Benefit) |
722 |
479 |
Equity in Net Income of Equity
Method Investees |
35 |
76 |
Net income |
977 |
966 |
Less: Net income attributable
to noncontrolling interests |
(24) |
(35) |
Net Income attributable to
IIJ |
953 |
931 |
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 |
|
2Q14 |
2Q15 |
|
JPY millions |
JPY millions |
CAPEX, including capital
leases |
3,170 |
4,923 |
Acquisition of
Assets by Entering into Capital Leases |
1,096 |
1,972 |
Purchase of
Property and Equipment |
2,074 |
2,951 |
|
|
|
|
Internet Initiative
Japan Inc. |
|
Quarterly Consolidated
Statements of Income (Unaudited) |
|
(Three Months ended
September 30, 2014 and September 30, 2015) |
|
|
|
|
Three Months Ended September 30,
2014 |
Three Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
REVENUES: |
|
|
Network services: |
|
|
Internet connectivity services
(enterprise) |
4,115,551 |
4,289,227 |
Internet connectivity services
(consumer) |
1,796,647 |
3,494,511 |
WAN services |
5,971,196 |
6,341,720 |
Outsourcing services |
5,012,956 |
5,393,370 |
Total |
16,896,350 |
19,518,828 |
Systems integration: |
|
|
Systems Construction |
4,784,395 |
4,440,655 |
Systems Operation and Maintenance |
6,626,747 |
8,211,211 |
Total |
11,411,142 |
12,651,866 |
Equipment sales |
378,381 |
692,133 |
ATM operation business |
934,118 |
1,007,306 |
Total revenues |
29,619,991 |
33,870,133 |
COST AND EXPENSES: |
|
|
Cost of network services |
13,155,152 |
15,799,290 |
Cost of systems integration |
9,618,186 |
10,749,482 |
Cost of equipment sales |
321,256 |
621,549 |
Cost of ATM operation business |
618,131 |
650,459 |
Total cost |
23,712,725 |
27,820,780 |
Sales and marketing |
2,287,063 |
2,658,398 |
General and administrative |
1,844,582 |
1,843,154 |
Research and development |
127,445 |
125,493 |
Total cost and expenses |
27,971,815 |
32,447,825 |
OPERATING INCOME |
1,648,176 |
1,422,308 |
OTHER INCOME (EXPENSE): |
|
|
Dividend income |
22,189 |
11,165 |
Interest income |
6,321 |
6,540 |
Interest expense |
(61,122) |
(54,457) |
Foreign exchange gains (losses) |
6,118 |
(41,359) |
Net gain on sales of other
investments |
5,317 |
-- |
Other—net |
37,029 |
24,489 |
Other income (expense) — net |
15,852 |
(53,622) |
INCOME FROM OPERATIONS BEFORE INCOME
TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD
INVESTEES |
1,664,028 |
1,368,686 |
|
|
|
INCOME TAX EXPENSE |
722,156 |
478,584 |
EQUITY IN NET INCOME OF EQUITY METHOD
INVESTEES |
35,329 |
75,932 |
NET INCOME |
977,201 |
966,034 |
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS |
(24,008) |
(34,574) |
NET INCOME ATTRIBUTABLE TO
INTERNET INITIATIVE JAPAN INC. |
953,193 |
931,460 |
|
|
Three Months Ended September 30,
2014 |
Three Months Ended September 30,
2015 |
NET INCOME PER SHARE |
|
|
BASIC WEIGHTED-AVERAGE NUMBER OF
SHARES (shares) |
45,942,291 |
45,952,691 |
DILUTED WEIGHTED-AVERAGE NUMBER OF
SHARES (shares) |
46,011,812 |
46,041,718 |
BASIC WEIGHTED-AVERAGE NUMBER OF
ADS EQUIVALENTS (ADSs) |
91,884,582 |
91,905,382 |
DILUTED WEIGHTED-AVERAGE NUMBER OF
ADS EQUIVALENTS (ADSs) |
92,023,624 |
92,083,436 |
BASIC NET INCOME PER
SHARE (JPY) |
20.75 |
20.27 |
DILUTED NET INCOME PER
SHARE (JPY) |
20.72 |
20.23 |
BASIC NET INCOME PER ADS EQUIVALENT
(JPY) |
10.37 |
10.13 |
DILUTED NET INCOME PER
ADS EQUIVALENT (JPY) |
10.36 |
10.12 |
|
|
|
|
|
|
Quarterly
Consolidated Statements of Comprehensive Income
(Unaudited) |
|
|
Three Months Ended September 30,
2014 |
Three Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
NET INCOME |
977,201 |
966,034 |
Other comprehensive income (loss), net of
tax: |
|
|
Foreign currency translation
adjustments |
(20,298) |
71,961 |
Unrealized holding loss on
securities |
(348,824) |
(297,361) |
Defined benefit pension plans |
60 |
(415) |
Total comprehensive income |
608,139 |
740,219 |
Less: Comprehensive income attributable to
noncontrolling interests |
(24,278) |
(34,574) |
Comprehensive income attributable to
Internet Initiative Japan Inc. |
583,861 |
705,645 |
|
Internet Initiative
Japan Inc. |
Quarterly Consolidated
Statements of Cash Flows (Unaudited) |
(Three Months ended
September 30, 2014 and September 30, 2015) |
|
|
Three Months Ended September 30,
2014 |
Three Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
OPERATING ACTIVITIES: |
|
|
Net income |
977,201 |
966,034 |
Adjustments to reconcile net income to
net cash provided by operating activities: |
|
|
Depreciation and amortization |
2,371,510 |
2,460,903 |
Provision for retirement and pension
costs, less payments |
58,356 |
44,247 |
Provision for allowance for doubtful
accounts |
254 |
8,397 |
Gain on sales of property and
equipment |
-- |
(12) |
Loss on disposal of property and
equipment |
14,916 |
1,246 |
Net gain on sales of other
investments |
(5,317) |
-- |
Foreign exchange losses (gains), net |
(16,152) |
24,947 |
Equity in net income of equity
method investees, less dividends received |
(2,989) |
(27,422) |
Deferred income tax benefit |
98,332 |
6,275 |
Other |
17,000 |
(6,751) |
Changes in operating assets and
liabilities: |
|
|
Increase in accounts receivable |
(2,145,722) |
(876,520) |
Decrease (increase) in net investment in
sales-type lease―noncurrent |
106,234 |
(102,666) |
Increase in inventories |
(125,328) |
(380,874) |
Decrease in prepaid expenses |
689,105 |
586,539 |
Decrease (increase) in other current and
noncurrent assets |
(199,792) |
106,878 |
Increase in accounts payable |
471,094 |
1,228,380 |
Increase in income taxes payable |
585,207 |
593,540 |
Increase (decrease) in accrued
expenses |
262,809 |
(41,136) |
Decrease in deferred income― current |
(104,421) |
(266,265) |
Increase (decrease) in deferred income―
noncurrent |
151,579 |
(8,939) |
Decrease in other current
and noncurrent liabilities |
(714,305) |
(734,523) |
Net cash provided by
operating activities |
2,489,571 |
3,582,278 |
INVESTING ACTIVITIES: |
|
|
Purchase of property and equipment |
(2,074,430) |
(2,951,180) |
Proceeds from sales of property and
equipment |
155,942 |
271,363 |
Purchase of available-for-sale
securities |
-- |
(47,312) |
Purchase of other investments |
(32,301) |
(18,603) |
Investment in an equity method
investee |
-- |
(39,974) |
Proceeds from sales of other
investments |
17,615 |
298,906 |
Payments of guarantee deposits |
(71,218) |
(14,442) |
Refund of guarantee deposits |
25,822 |
2,884 |
Payments for refundable insurance
policies |
(11,189) |
(14,090) |
Proceeds from subsidies |
200,000 |
-- |
Other |
(25,000) |
(12) |
Net cash used in
investing activities |
(1,814,759) |
(2,512,460) |
|
|
Three Months Ended September 30,
2014 |
Three Months Ended September 30,
2015 |
|
Thousands of JPY |
Thousands of JPY |
FINANCING ACTIVITIES: |
|
|
Repayments of short-term borrowings with
initial maturities over three months and long-term borrowings |
(980,000) |
(1,500,000) |
Principal payments under capital
leases |
(1,079,066) |
(985,700) |
Net decrease in short-term borrowings
with initial maturities less than three months |
-- |
1,500,000 |
Other |
-- |
10 |
Net cash used in
financing activities |
(2,059,066) |
(985,690) |
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS |
11,917 |
9,938 |
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
(1,372,337) |
94,066 |
CASH AND CASH
EQUIVALENTS, BEGINNING OF THE PERIOD |
20,421,047 |
20,004,403 |
CASH AND CASH
EQUIVALENTS, END OF THE PERIOD |
19,048,710 |
20,098,469 |
Note: The following information is provided to
disclose Internet Initiative Japan Inc. ("IIJ") financial results
(unaudited) for the six months ended September 30, 2015 ("1H15") in
the form defined by the Tokyo Stock Exchange.
Consolidated Financial Results for the Six Months ended
September 30, 2015 [Under accounting principles generally accepted
in the United States ("U.S. GAAP")]
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
16, 2015 |
Scheduled date for interim dividend payment:
December 7, 2015 |
Supplemental material on annual results:
Yes |
Presentation on quarterly report: 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, 2015 (April 1, 2015
to September 30, 2015) |
(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, 2015 |
65,334 |
14.3 |
2,563 |
6.1 |
2,647 |
6.2 |
1,652 |
14.4 |
Six Months Ended September 30,
2014 |
57,172 |
5.1 |
2,416 |
(19.7) |
2,491 |
(25.6) |
1,444 |
(34.5) |
(Note1) Total comprehensive
income attributable to IIJ |
For the six months ended
September 30, 2015: JPY1,493 million (up 177.5% YoY) |
For the six months ended
September 30, 2014: JPY538 million (down 79.7% 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, 2015 |
35.96 |
35.90 |
Six Months Ended September 30,
2014 |
31.44 |
31.39 |
|
(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, 2015 |
110,806 |
63,955 |
63,519 |
57.3 |
As of March 31, 2015 |
108,705 |
62,844 |
62,504 |
57.5 |
|
2.
Dividends |
|
Dividend per share |
|
1Q-end |
2Q-end |
3Q-end |
Year-end |
Total |
|
JPY |
JPY |
JPY |
JPY |
JPY |
Fiscal Year Ended March 31, 2015 |
-- |
11.00 |
-- |
11.00 |
22.00 |
Fiscal Year Ended March 31, 2016 |
-- |
11.00 |
|
|
|
Fiscal Year Ending March 31, 2016
(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,
2016 (April 1, 2015 through March 31, 2016) |
(% 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, 2016 |
139,000 |
13.0 |
6,500 |
28.1 |
6,400 |
24.5 |
4,000 |
20.4 |
87.07 |
(Note1) Changes to the latest
forecasts released: No |
* Notes |
(1) Changes in significant subsidiaries for
the three months ended September 30, 2015 |
(Changes in significant subsidiaries
for the three months ended September 30, 2015 which resulted in
changes in scope of consolidation): None |
|
(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, 2015: 46,711,400
shares |
As of March 31, 2015: 46,701,000
shares |
2) The number of treasury stock: |
As of September 30, 2015: 758,709
shares |
As of March 31, 2015: 758,709
shares |
3) The weighted average number of shares
outstanding: |
For the six months ended September 30,
2015: 45,947,519 shares |
For the six months ended September 30,
2014: 45,942,291 shares |
CONTACT: IIJ Investor Relations
Tel: +81-3-5205-6500
E-mail: ir@iij.ad.jp
URL: http://www.iij.ad.jp/en/ir
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