FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For October 21, 2003
Commission File Number: 0-30204
-------
Internet Initiative Japan Inc.
(Translation of registrant's name into English)
Jinbocho Mitsui Bldg. 1-105 Kanda Jinbo-cho, Chiyoda-ku, Tokyo 101-0051, Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F:
Form 20-F [ X ] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as per-mitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of
a Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as per-mitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of
a Form 6-K if submitted to furnish a report or other document that the
registrant foreign private issuer must furnish and make public under the laws of
the jurisdiction in which the reg-istrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
mate-rial event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [ X ]
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- -------------
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN
THE PROSPECTUS INCLUDED IN THE REGISTRATION STATMENT ON FORM F-3 (FILE NO.
333-12696) OF INTERNET INITIATIVE JAPAN INC. AND TO BE A PART THEREOF FROM THE
DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY
DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
EXHIBIT INDEX
Exhibit Date Description of Exhibit
------- ---- ----------------------
1 10/21/2003 IIJ Announces Revised First Quarter 2003 Results
for the Year Ending March 31, 2004
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Internet Initiative Japan Inc.
Date: October 21, 2003 By: /s/ Koichi Suzuki
-------------------------------------
Koichi Suzuki
President, Chief Executive Officer and
Representative Director
EXHIBIT 1
IIJ Announces Revised First Quarter Results for the
Year Ending March 31, 2004
TOKYO and NEW YORK--(BUSINESS WIRE)--Oct. 21, 2003--Internet
Initiative Japan Inc. (Nasdaq: IIJI) ("IIJ"), one of Japan's leading
Internet access and comprehensive network solutions providers, today
announced revised financial results for the 1st quarter of the year
ending March 31, 2004.
Overview of Revisions to the Financial Results for the 1st Quarter of
the Year Ending March 31, 2004
-- As discussed in our press releases on August 20, 2003, and
October 9, 2003, IIJ made a determination to fully write-off
its investment in and deposits for and loans to Crosswave
Communications Inc. ("Crosswave"), which was formerly an
equity method investee of IIJ, and accounts receivable due
from Crosswave due to the August 20, 2003 filing of voluntary
petition for the commencement of corporate reorganization
proceedings in Japan by Crosswave.
-- The equity method net loss and impairment loss on investment
in and deposits for Crosswave was JPY 12.7 billion for the
year ended March 31, 2003, and IIJ filed with the United
States Securities and Exchange Commission an amended annual
report on Form 20-F on October 8, 2003, with audited financial
statements reflecting these losses for the fiscal year ended
March 31, 2003.
-- Although IIJ announced its unaudited financial results for the
1st quarter of the year ending March 31, 2004 on August 13,
2003 (including consolidated balance sheets, condensed
consolidated statements of operation and condensed
consolidated cash flows), IIJ has revised this financial
statement data to reflect the effects caused by the write-off
described above regarding Crosswave.
-- The major revisions in the revised financial results to the
previously announced financial results for the 1st quarter for
the year ending March 31, 2004 are as follows:
- As IIJ has fully written-off its investment in and deposits
for Crosswave at March 31, 2003, the accumulated deficit
carried forward to the 1st quarter of the year ending
March 31, 2004 from the year ended March 31, 2003
increased by JPY 7.2 billion.
- As IIJ has already fully recognized impairment loss on
investment in and deposits for Crosswave at March 31, 2003
for the full value of IIJ's investment in Crosswave at
March 31, 2003 and no longer accounts for Crosswave under
the equity method, the revised results for the 1st quarter
for the year ending March 31, 2004 exclude equity method
net loss for Crosswave of JPY 1.33 billion that was
included in the previously announced financial results for
the 1st quarter.
- As IIJ has fully written-off the loans of JPY 1.72 billion
that IIJ extended to Crosswave in May and June 2003,
impairment loss on investment, advances and deposits for
Crosswave has increased to JPY 1.72 billion.
- IIJ has fully written-off accounts receivable due from
Crosswave of JPY 150 million. As JPY 120 million of the
amount is a result of write-offs by IIJ's subsidiaries,
minority interests decreased by JPY 50 million and
minority interests profit and loss increased by the same
amount.
-- Other information, including revenues, details of expenses,
and number of contracts in its unaudited consolidated balance
sheets, consolidated statements of operation and condensed
consolidated cash flows, remain unchanged.
-- The remaining direct financial impact resulting from
Crosswave's corporate reorganization proceedings will be JPY
0.3 billion of accounts receivable due from Crosswave prior to
entering corporate reorganization that IIJ plans to write off
in the 2nd quarter of the year ending March 31, 2004.
Summary of Revisions to the Financial Results for the 1st quarter of
the year ending March 31, 2004
(JPY Million)
Figures Revised
Announced Figures
on August on
13, 2003 October
21,
2003
----------------------------------------------------------------------
The major items in consolidated statements of
operations
----------------------------------------------------------------------
Total revenues 8,344 8,344
----------------------------------------------------------------------
Total costs 7,868 7,868
----------------------------------------------------------------------
Total costs and expenses (*1) 9,404 9,550
----------------------------------------------------------------------
Operating loss -1,060 -1,206
----------------------------------------------------------------------
Other expenses 204 204
----------------------------------------------------------------------
Loss before income tax expense (benefit) -1,264 -1,410
----------------------------------------------------------------------
Income tax expense (benefit) -390 -390
----------------------------------------------------------------------
Minority interests in consolidated subsidiaries 202 255
----------------------------------------------------------------------
Equity in net loss of equity method investees -1,317 -1,709
Equity method net loss -1,317 11
Impairment loss on investment, advances and
deposits for Crosswave (*2) 0 -1,720
----------------------------------------------------------------------
Net loss -1,989 -2,475
----------------------------------------------------------------------
The amended items on the consolidated balance sheets
----------------------------------------------------------------------
Accounts receivable, net 6,024 5,889
----------------------------------------------------------------------
Other current assets 556 534
----------------------------------------------------------------------
Investments in and Advances to Equity Method
Investees (*3) 3,689 1,142
----------------------------------------------------------------------
Restricted Cash (*4) 5,000 0
----------------------------------------------------------------------
Accounts payable 4,411 4,407
----------------------------------------------------------------------
Accumulated deficit -29,521 -37,160
----------------------------------------------------------------------
Total shareholders' equity (capital deficiency) -2,872 -10,512
----------------------------------------------------------------------
The other amended items
----------------------------------------------------------------------
Basic Net Loss Per Share (JPY thousand) 88 109
----------------------------------------------------------------------
Basic Net Loss Per ADS Equivalent (JPY) 43.98 54.72
----------------------------------------------------------------------
Adjusted EBITDA (*5) -97 -243
----------------------------------------------------------------------
*1 Increased by JPY 150 million due to the determination to fully
write-off accounts receivable due from Crosswave.
*2 Increased by JPY 1.72 billion due to the determination to fully
write-off JPY 1.72 billion in respect of loans extended by IIJ to
Crosswave.
*3 Decreased by JPY 2.55 billion as a result of the determination to
write-off all the investments in Crosswave of JPY 2.16 billion at
the end of March 2003 and the determination to write off the loans
extended to Crosswave of JPY 1.72 billion, being only partially
offset by the removal of the equity method net loss for Crosswave
of JPY 1.33 billion from the financial statements for the 1st
quarter of the year ending March 31, 2003.
*4 Decreased by JPY 5.0 billion due to write-off of the restricted
cash relating Crosswave at the end of March 2003.
*5 Please refer to the Reconciliation of Non-GAAP Financial Measures
to the most directly comparable GAAP financial measure below.
Reconciliation of Non-GAAP Financial Measures to the Most Directly
Comparable GAAP Financial Measures
The following table summarizes the reconciliation of adjusted
EBITDA to net loss per the consolidated statements of operations
prepared and presented in accordance with U.S. generally accepted
accounting principles.
(JPY Million)
Adjusted EBITDA -243
----------------------------------------------------------------------
Depreciation and amortization (*1) -963
======================================================================
Operating loss -1,206
----------------------------------------------------------------------
Other expenses -204
----------------------------------------------------------------------
Income tax benefit 390
----------------------------------------------------------------------
Minority interests in consolidated subsidiaries 255
----------------------------------------------------------------------
Equity in net loss of equity method investees -1,710
======================================================================
Net loss -2,475
----------------------------------------------------------------------
*1 Depreciation and amortization excludes amortization of issuance
cost of convertible notes that was presented as other expenses.
Improvement of Capital Structure
As indicated in our press release of September 16, 2003, IIJ has
completed a private placement to NTT Group (Nippon Telegraph and
Telephone Corporation and NTT Communications Corporation), Itochu
Corporation, Sumitomo Corporation and three other companies totaling
JPY 12,000,649,500. This capital injection will improve IIJ's capital
structure and help to offset the financial impact of the commencement
of corporate reorganization proceedings by Crosswave.
The statements within this release contain forward-looking
statements about our future plans that involve risk and uncertainties.
These statements may differ materially from actual future events or
results. Readers are referred to the documents filed by Internet
Initiative Japan Inc. with the SEC, specifically the most recent
reports on Forms 20-F and 6-K, which identify important risk factors
that could cause actual results to differ from those contained in the
forward-looking statements.
INTERNET INITIATIVE JAPAN INC.
-------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
-------------------------------------------------
For the Three Months Ended Jun 30, 2003, Jun 30, 2002 and Mar 31, 2003
(Expressed in Thousands of Japanese Yen (JPY) and U.S. Dollars
(USD) Except for Per Share and ADS Data) (1)
Year-over-year Comparison
Jun 30, 2003
-----------------------------
% of
Total
USD (1) JPY Revenues
-------- ----------- --------
Revenues:
Connectivity and value-added
services:
Dedicated access services 27,707 3,321,229 39.8%
Dial-up access services 6,402 767,418 9.2
Value-added services 8,235 987,198 11.9
Other 4,336 519,709 6.2
-------- ----------- --------
Total connectivity and value-
added services 46,680 5,595,554 67.1
Systems integration revenues 20,088 2,407,923 28.8
Equipment sales 2,841 340,569 4.1
-------- ----------- --------
Total revenues 69,609 8,344,046 100.0
-------- ----------- --------
Costs and expenses:
Cost of connectivity and value-added
services 43,665 5,234,158 62.7
Cost of systems integration revenues 19,383 2,323,392 27.9
Cost of equipment sales 2,594 310,946 3.7
-------- ----------- --------
Total costs 65,642 7,868,496 94.3
Sales and marketing 8,117 973,054 11.7
General and administrative 5,106 612,047 7.3
Research and development 802 96,098 1.2
-------- ----------- --------
Total costs and
expenses 79,667 9,549,695 114.5
-------- ----------- --------
Operating loss (10,058) (1,205,649) (14.5)
-------- ----------- --------
Other expenses (1,705) (204,398) (2.4)
-------- ----------- --------
Loss before income tax expense(benefit) (11,763) (1,410,047) (16.9)
-------- ----------- --------
Income tax expense(benefit) (3,254) (390,035) (4.7)
Minority interests in consolidated
subsidiaries 2,126 254,886 3.0
Equity in net loss of equity method
investees:
Equity method net income(loss) 88 10,559 0.1
Impairment loss on investment,
advances and deposits for Crosswave (14,349) (1,719,981) (20.6)
-------- ----------- --------
Net loss (20,644) (2,474,548) (29.7%)
======== =========== ========
Basic Net Loss Per Share (109,440)
Basic Net Loss Per ADS Equivalent (54.72)
Weighted Average Number of Shares 22,611
Weighted Average Number of ADS
Equivalents 45,222,494
Jun 30, 2002
----------------------------
% of
Total YOY
JPY Revenues Chg %
----------- -------- -------
Revenues:
Connectivity and value-added
services:
Dedicated access services 3,523,334 35.8% (5.7%)
Dial-up access services 822,268 8.3 (6.7)
Value-added services 865,161 8.8 14.1
Other 408,925 4.2 27.1
----------- -------- -------
Total connectivity and
value-added services 5,619,688 57.1 (0.4)
Systems integration revenues 3,329,058 33.8 (27.7)
Equipment sales 900,456 9.1 (62.2)
----------- -------- -------
Total revenues 9,849,202 100.0 (15.3)
----------- -------- -------
Costs and expenses:
Cost of connectivity and value-added
services 5,092,515 51.7 2.8
Cost of systems integration revenues 2,987,373 30.3 (22.2)
Cost of equipment sales 876,012 8.9 (64.5)
----------- -------- -------
Total costs 8,955,900 90.9 (12.1)
Sales and marketing 749,361 7.6 29.9
General and administrative 517,316 5.3 18.3
Research and development 90,780 0.9 5.9
----------- -------- -------
Total costs and
expenses 10,313,357 104.7 (7.4)
----------- -------- -------
Operating loss (464,155) (4.7) 159.8
----------- -------- -------
Other expenses (520,836) (5.3) (60.8)
----------- -------- -------
Loss before income tax expense(benefit) (984,991) (10.0) 43.2
----------- -------- -------
Income tax expense(benefit) 161,301 1.6 (341.8)
Minority interests in consolidated
subsidiaries 66,950 0.7 280.7
Equity in net loss of equity method
investees:
Equity method net income(loss) (1,515,675) (15.4) (100.7)
Impairment loss on investment,
advances and deposits for
Crosswave
----------- -------- -------
Net loss (2,595,017) (26.3%) (4.6%)
=========== ======== =======
Basic Net Loss Per Share (115,437)
Basic Net Loss Per ADS Equivalent (57.72)
Weighted Average Number of Shares 22,480
Weighted Average Number of ADS
Equivalents 44,960,000
Sequential Comparison
Mar 31, 2003
-----------------------------
% of
Total QOQ
JPY Revenues Chg %
----------- -------- ------
Revenues:
Connectivity and value-added services:
Dedicated access services 3,341,255 25.6% (0.6%)
Dial-up access services 764,958 5.9 0.3
Value-added services 931,399 7.2 6.0
Other 381,206 2.9 36.3
----------- -------- --------
Total connectivity and value-added
services 5,418,818 41.6 3.3
Systems integration revenues 4,905,429 37.6 (50.9)
Equipment sales 2,712,192 20.8 (87.4)
----------- -------- --------
Total revenues 13,036,439 100.0 (36.0)
----------- -------- --------
Costs and expenses:
Cost of connectivity
and value-added services 5,033,266 38.6 4.0
Cost of systems integration revenues 4,247,690 32.6 (45.3)
Cost of equipment sales 2,638,334 20.2 (88.2)
----------- --------
Total costs 11,919,290 91.4 (34.0)
Sales and marketing 789,234 6.0 23.3
General and administrative 661,502 5.1 (7.5)
Research and development 112,845 0.9 (14.8)
----------- -------- --------
Total costs and
expenses 13,482,871 103.4 (29.2)
----------- -------- --------
Operating loss (446,432) (3.4) 170.1
----------- -------- --------
Other expenses (360,292) (2.8) (43.3)
---------- -------- --------
Loss before income tax expense(benefit) (806,724) (6.2) 74.8
----------- -------- --------
Income tax expense(benefit) 97,256 0.8 (501.0)
Minority interests in consolidated
subsidiaries 21,342 0.2 1,094.3
Equity in net loss of equity
method investees:
Equity method net income(loss) (1,253,875) (9.6) (100.8)
Impairment loss on
investment, advances
and deposits for Crosswave (7,153,087) (54.9) (76.0)
----------- -------- --------
Net loss (9,289,600) (71.3%) (73.4%)
=========== ======== ========
Basic Net Loss Per Share (413,238)
Basic Net Loss Per ADS Equivalent (206.62)
Weighted Average Number of Shares 22,480
Weighted Average Number of
ADS Equivalents 44,960,000
Note (1): The translation of Japanese yen amounts into US dollar
amounts with respect to the three months ended Jun 30,
2003 are included solely for the convenience of readers
outside Japan and have been made at the rate of JPY 119.87
=$1, the approximate rate of exchange on Jun 30, 2003.
INTERNET INITIATIVE JAPAN INC.
------------------------------
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
---------------------------------------
As of Jun 30, 2003, Jun 30, 2002 and Mar 31, 2003 (Expressed in
Thousands of Japanese Yen (JPY) and U.S. Dollars (USD)) (1)
Jun 30, 2003
------------------------------
USD (1) JPY %
--------- ------------ -------
ASSETS
---------------------------------------
Current Assets:
Cash 23,517 2,819,007 10.2%
Accounts receivable, net 49,131 5,889,315 21.3
Inventories 2,903 347,971 1.3
Prepaid expenses 7,057 845,908 3.1
Other current assets 4,455 534,025 1.9
--------- ------------ -------
Total current assets 87,063 10,436,226 37.8
Investments in and Advances to Equity
Method Investees 9,525 1,141,728 4.1
Other Investments 33,100 3,967,719 14.4
Property and Equipment, net 77,121 9,244,442 33.5
Restricted Cash
Guarantee Deposits 17,370 2,082,118 7.6
Other Assets 5,959 714,367 2.6
--------- ------------ -------
Total assets 230,138 27,586,600 100.0%
========= ============ =======
LIABILITIES AND
---------------------------------------
SHAREHOLDERS' EQUITY
---------------------------------------
Current Liabilities:
Short-term borrowings 47,346 5,675,341 20.6%
Accounts payable 36,764 4,406,928 16.0
Accrued expenses 4,482 537,236 1.9
Other current liabilities 4,526 542,538 1.9
Long-term borrowings-current portion 12,892 1,545,452 5.6
Capital lease obligations-current
portion 22,333 2,677,038 9.7
--------- ------------ -------
Total current liabilities 128,343 15,384,533 55.7
Long-term Borrowings 28,527 3,419,555 12.4
Convertible Notes 125,135 15,000,000 54.4
Capital Lease Obligations-Noncurrent 28,429 3,407,735 12.3
Accrued Retirement and Pension Costs 624 74,764 0.3
Other Noncurrent Liabilities 1,565 187,579 0.7
--------- ------------ -------
Total liabilities 312,623 37,474,166 135.8
--------- ------------ -------
Minority Interest 5,211 624,609 2.3
--------- ------------ -------
Shareholders' Equity:
Common stock(2) 64,779 7,765,048 28.2
Additional paid-in capital(2) 148,086 17,751,065 64.3
Accumulated deficit (310,001) (37,159,839) (134.7)
Accumulated other comprehensive income 9,441 1,131,644 4.1
Treasury stock (1) (93) 0.0
--------- ------------ -------
Total shareholders' equity (87,696) (10,512,175) (38.1)
--------- ------------ -------
Total liabilities and
shareholders' equity 230,138 27,586,600 100.0%
========= ============ =======
Jun 30, 2002 Mar 31, 2003
------------------- ---------------------
JPY % JPY %
------------ ------ ------------ --------
ASSETS
--------------------------
Current Assets:
Cash 6,014,693 14.7% 3,588,352 11.2%
Accounts receivable, net 6,872,763 16.7 10,253,096 32.0
Inventories 272,821 0.7 417,666 1.3
Prepaid expenses 645,763 1.6 564,501 1.7
Other current assets 140,162 0.3 932,873 2.9
------------ ------ ------------ --------
Total current
assets 13,946,202 34.0 15,756,488 49.1
Investments in and Advances
to Equity Method Investees 7,396,756 18.0 1,116,020 3.5
Other Investments 4,954,787 12.0 3,040,189 9.5
Property and Equipment,
net 7,709,559 18.8 9,151,572 28.5
Restricted Cash 5,000,000 12.2
Guarantee Deposits 1,302,234 3.2 2,205,652 6.9
Other Assets 743,614 1.8 794,455 2.5
------------ ------ ------------ --------
Total assets 41,053,152 100.0% 32,064,376 100.0%
============ ====== ============ ========
LIABILITIES AND
--------------------------
SHAREHOLDERS' EQUITY
--------------------------
Current Liabilities:
Short-term borrowings 4,550,835 11.1% 4,823,599 15.0%
Accounts payable 4,834,546 11.8 8,406,170 26.2
Accrued expenses 317,968 0.8 389,495 1.2
Other current liabilities 556,494 1.3 551,985 1.7
Long-term borrowings-
current portion 1,400,000 3.4 1,943,735 6.1
Capital lease obligations-
current portion 2,060,284 5.0 2,716,386 8.5
------------ ------ ------------ --------
Total current
liabilities 13,720,127 33.4 18,831,370 58.7
Long-term Borrowings 3,400,000 8.3 3,456,265 10.8
Convertible Notes 15,000,000 36.6 15,000,000 46.8
Capital Lease Obligations-
Noncurrent 2,800,483 6.8 3,635,780 11.3
Accrued Retirement and
Pension Costs 91,037 0.2 80,601 0.3
Other Noncurrent
Liabilities 163,686 0.4 185,201 0.6
------------ ------ ------------ --------
Total
liabilities 35,175,333 85.7 41,189,217 128.5
------------ ------ ------------ --------
Minority Interest 965,796 2.3 879,495 2.7
------------ ------ ------------ --------
Shareholders' Equity:
Common stock(2) 7,082,336 17.3 7,082,336 22.1
Additional paid-in
capital(2) 17,068,353 41.6 17,068,353 53.2
Accumulated deficit (20,803,486) (50.7) (34,685,291) (108.2)
Accumulated other
comprehensive income 1,564,820 3.8 530,266 1.7
Treasury stock
------------ ------ ------------ --------
Total shareholders'
equity 4,912,023 12.0 (10,004,336) (31.2)
------------ ------ ------------ --------
Total liabilities
and shareholders'
equity 41,053,152 100.0% 32,064,376 100.0%
============ ====== ============ ========
Note (1): The translation of Japanese yen amounts into US dollar
amounts with respect to Jun 30, 2003 are included solely
for the convenience of readers outside Japan and have been
made at the rate of JPY119.87 =$1, the approximate rate of
exchange on Jun 30, 2003.
Note (2): New 3,265 shares have been issued on Jun 26, 2003, in the
amount of JPY1,365,423.
INTERNET INITIATIVE JAPAN INC.
-------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
-----------------------------------------------------------
For the Three Months Ended Jun 30, 2003, Jun 30, 2002 and Mar 31, 2003
(Expressed in Thousands of Japanese Yen (JPY) and
U.S. Dollars (USD)) (1)
Jun 30, 2003 Jun 30, 2002 Mar 31, 2003
------------------- ----------- -----------
USD (1) JPY JPY JPY
-------- ---------- ----------- -----------
Operating Activities:
Net loss (20,644) (2,474,548) (2,595,017) (9,289,600)
Depreciation and
amortization 8,261 990,190 820,252 933,374
Equity method net
loss (income) (88) (10,559) 1,515,675 1,253,875
Impairment loss on
investment,
advances and
deposits for
Crosswave 14,349 1,719,981 - 7,153,087
Minority interests
in net loss of
consolidated
subsidiaries (2,126) (254,886) (66,950) (21,342)
Foreign exchange
losses 27 3,245 134,820 149,262
Losses on other
investments 313 37,572 78,819 184,723
Decrease
(increase) in
accounts
receivable 35,280 4,229,010 2,109,969 (2,983,254)
Increase
(decrease) in
accounts payable (30,625) (3,671,049) (1,996,362) 2,200,392
Decrease in
inventories 581 69,689 347,588 392,051
Deferred income
taxes (3,301) (395,698) 152,840 91,486
Other 3,449 413,421 (45,560) 426,284
-------- ----------- ----------- -----------
Net cash provided
by operating
activities 5,476 656,368 456,074 490,338
-------- ----------- ----------- -----------
Investing Activities:
Purchase of
property and
equipment (7,789) (933,646) (424,321) (163,592)
Proceeds from
sale-leaseback - - - 66,940
Proceeds from
sales of other
investment 289 34,672 8,553 13,663
Investments in and
advances to
equity method
investees (14,349) (1,719,981) (56,250) -
Purchase of other
investments (108) (12,971) - -
Deposit to
restricted cash - - (5,000,000) -
Refund (payment)
of guarantee
deposits-net 1,032 123,632 (36,155) (1,387,210)
Other - 11 (10,696) (7,606)
-------- ----------- ----------- -----------
Net cash used in
investing
activities (20,925) (2,508,283) (5,518,869) (1,477,805)
-------- ----------- ----------- -----------
Financing Activities:
Proceeds from
long-term
borrowings - - - 2,000,000
Repayments of
long-term
borrowings (3,629) (434,994) - (1,200,000)
Principal payments
under capital
leases (5,822) (697,830) (566,505) (656,238)
Net increase in
short-term
borrowings 7,106 851,742 730,603 312,854
Proceeds from
issuance of
common stock 11,391 1,365,424 - -
-------- ----------- ----------- -----------
Net cash provided
by financing
activities 9,046 1,084,342 164,098 456,616
-------- ----------- ----------- -----------
Effect of Exchange Rate
Changes on Cash (15) (1,772) (132,529) (151,410)
-------- ----------- ----------- -----------
Net Decrease in Cash (6,418) (769,345) (5,031,226) (682,261)
-------- ----------- ----------- -----------
Cash, Beginning of
Period 29,935 3,588,352 11,045,919 4,270,613
-------- ----------- ----------- -----------
Cash, End of Period 23,517 2,819,007 6,014,693 3,588,352
======== =========== =========== ===========
Note (1): The translations of Japanese yen amounts into US dollar
amounts with respect to the three months ended Jun 30,
2003 are included solely for the convenience of readers
outside Japan and have been made at the rate of JPY119.87
=$1, the approximate rate of exchange on Jun 30, 2003.
CONTACT: IIJ
Investor/Media Relations Office
Hiroaki Tsuno / Taisuke Ono, +81-3-5259-6500
ir@iij.ad.jp