Investor Relations

IIJ Announces 1st Quarter Results for the Period Ended June 30, 2000
Tokyo and New York, August 15, 2000 - Internet Initiative Japan Inc. (NASDAQ: IIJI) ("IIJ"), one of Japan's leading Internet-access and Internet-related services providers, today announced its financial results for the first quarter ended June 30, 2000. The results were prepared in accordance with accounting principles generally accepted in the United States for interim financial information. All figures are unaudited.

1Q00 Results Summary
  • Total revenues continuously increased to JPY7,246 million, up 34.3% from 1Q99 (77.8% growth excluding equipment sales of JPY1,320 million to Crosswave in 1Q99), primarily as a result of revenue increase from Dedicated Access Service and Systems Integration (SI).
  • Sequentially, the total revenues were down 4.5% compared to 4Q99 when the SI revenues were seasonally(*) stronger. SI revenues decreased 16.4% from 4Q99, while Dedicated Access Service revenues increased 11.5% from 4Q99.
  • Due to strong demand for higher bandwidth, total bandwidth contracted for Dedicated Access Services jumped 175.7% from 1Q99 and 45.0% from 4Q99 to approximately 2,240Mbps. The total number of contracts for Dedicated Access Services increased 31.9% from 1Q99 and 9.0% from 4Q99 to 2,185.
  • Along with its data center and CATV strategies, IIJ expanded domestic backbone network and facilities in order to swiftly capture and capitalize on the growing demand.
  • As a result, operating loss was JPY865 million, a JPY344 million increase from 4Q99 due mainly to the increased cost and expenses related to expansion of network, facilities, and marketing promotion. Despite the aggregate increase in expenses in this quarter, operating loss ratio improved to 11.9% from 12.3% in 1Q99 of total revenues.
(*) Seasonal variations in SI revenues occur accordingly to corporate customer's budgetary cycles. Companies in Japan typically attempt to complete large SI projects at the end of the 2nd quarter and the 4th quarter. This seasonality may affect the company's revenues on a quarter-to-quarter basis.

Business Outlook
1Q00 Operating Highlights
1Q00 Financial Results : Year-over-Year and Quarter-over-Quarter Comparison


Copyright (c) Internet Initiative Japan Inc., 1996.