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 August 15, 2005
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-
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EXHIBIT INDEX
Exhibit Date Description of Exhibit
1 2005/08/12 IIJ Announces First Quarter Results for the Year
Ending March 31, 2006
2 2005/08/12 IIJ Group Announces Corporate Reorganization to
Streamline Delivery of Total Network Solutions
Exhibit 1
IIJ Announces First Quarter Results for the Year Ending March 31, 2006; Highest
Revenues and Profits for the First Quarter, the Weakest Period in the Fiscal
Year Historically
TOKYO & NEW YORK--(BUSINESS WIRE)--Aug. 12, 2005--Internet
Initiative Japan Inc. (Nasdaq: IIJI) ("IIJ"), one of Japan's leading
Internet-access and comprehensive network solutions providers, today
announced its financial results for the first quarter of the fiscal
year ending March 31, 2006 ("FY2005").(1)
Highlights of First Quarter FY2005 Results
-- Revenue totaled JPY 9,880 million ($89.1 million), an increase
of 13.9% from 1Q04.
-- Operating income was JPY 247 million ($2.2 million), a
substantial improvement from the operating loss of JPY 100
million in 1Q04.
-- Net income was JPY 623 million ($5.6 million), compared to a
net loss of JPY 238 million in 1Q04.
Target for FY2005(2)
-- We maintain the target for FY2005 that we announced on May 27,
2005.
Overview of 1st Quarter of FY2005 Financial Results and Business
Outlook(2)
"An increase in demand from corporate customers for outsourced
network operations and systems integration utilizing broadband
technology continued to support our growth in 1Q05," said Koichi
Suzuki, President and CEO of IIJ. "Despite the fact that our first
quarter has historically been our weakest quarter due to seasonal
fluctuations in Japanese corporate investment spending, we recorded a
significant improvement compared to 1Q04. In particular, revenue
increased by 13.9% compared to 1Q04, and profits improved
substantially. It was the first time since our NASDAQ listing that we
achieved positive operating and net income in the first quarter, which
was primarily due to our continued focus on steadily increasing
recurring monthly revenues from outsourced network operations."
Mr. Suzuki continued, "We planned to list our shares in Japan in
June 2005 and we are disappointed that we could not complete it. We
did not attract a sufficient number of new shareholders to meet the
listing requirements of the Tokyo Stock Exchange, most likely due to
adverse ADS price fluctuations on NASDAQ after the pricing day of the
Japanese offering. However, we believe that this will not have a
material effect on our financial condition. We will continue to make
our future listing in Japan one of our highest priorities."
"We had a remarkable start to our 2005 fiscal year given that the
first quarter is historically the weakest period due to seasonal
fluctuation in Japan," said Akihisa Watai, CFO of IIJ. "We
outperformed our internal targets for 1Q05, in both revenues and
profits, and maintain the target for FY2005 that we announced on May
27, 2005. We believe that the strengthening Japanese economy and
favorable business trends will continue to bring us profits, with
steady monthly revenues from outsourced network operations and
higher-margin revenues from systems integration ("SI"), including
network design, consulting and implementation."
1st Quarter FY2005 Financial Results
Operating Result Summary
(JPY in millions)
1Q05 1Q04 YoY % 4Q04 QoQ %
change Change
----------------------------------------------------------------------
Total Revenues 9,880 8,675 13.9% 12,254 (19.4%)
----------------------------------------------------------------------
Total Costs 8,118 7,443 9.1% 10,012 (18.9%)
----------------------------------------------------------------------
SG&A Expenses and R&D 1,516 1,332 13.8% 1,586 (4.4%)
----------------------------------------------------------------------
Operating Income 247 (100) (345.5%) 656 (62.4%)
----------------------------------------------------------------------
Net Income (Loss) 623 (238) (361.5%) 2,256 (72.4%)
----------------------------------------------------------------------
Revenues
Revenues in 1Q05 totaled JPY 9,880 million, an increase of 13.9%
from JPY 8,675 million in 1Q04 and a decrease of 19.4% from JPY 12,254
million in 4Q04.
Revenues
(JPY in millions)
1Q05 1Q04 YoY % 4Q04 QoQ %
change Change
----------------------------------------------------------------------
Total Revenues 9,880 8,675 13.9% 12,254 (19.4%)
----------------------------------------------------------------------
Connectivity & VAS 5,767 5,450 5.8% 5,860 (1.6%)
----------------------------------------------------------------------
SI 3,840 2,695 42.5% 5,352 (28.2%)
----------------------------------------------------------------------
Equipment Sales 273 530 (48.5%) 1,042 (73.8%)
----------------------------------------------------------------------
Connectivity and Value-added Services ("VAS") revenues were JPY
5,767 million in 1Q05, an increase of 5.8 % from JPY 5,450 million in
1Q04 and a decrease of 1.6% from JPY 5,860 million in 4Q04.
Dedicated access service revenues were JPY 2,747 million in 1Q05,
a decrease of 5.9% compared to 1Q04 and a decrease of 3.3% compared to
4Q04. The decrease was mainly due to cancellation of IP Service by
certain large customers and the failure of an increase in revenues
from broadband services to offset a decrease in revenues from T1
Standard or IIJ Economy.
Dial-up access service revenues were JPY 699 million in 1Q05, a
decrease of 7.1% compared to 1Q04 and a decrease of 2.7% compared to
4Q04. The decrease from 1Q04 is mainly due to the decrease in revenues
from IIJ4U. The decrease from 4Q04 is mainly due to the decrease in
OEM service revenues.
VAS revenues were JPY 1,388 million in 1Q05, an increase of 16.9%
compared to 1Q04 and an increase of 5.0% compared to 4Q04. The
increase compared to 1Q04 and 4Q04 is mainly due to an increase in
revenues from data center services and various types of packaged
outsource services, such as e-mail and web hosting and network
services such as managed router services.
Other revenues were JPY 933 million in 1Q05, an increase of 57.5%
compared to 1Q04 and a decrease of 4.7% compared to 4Q04. The increase
from 1Q04 is mainly due to an increase in revenues from Wide-area
Ethernet Services.
SI revenues increased 42.5% to JPY 3,840 million in 1Q05 from JPY
2,695 million in 1Q04 and decreased 28.2% from JPY 5,352 million in
4Q04. The increase from 1Q04 is mainly due to additional revenues from
the purchase of the security system business operations of Yamatane
Co. Ltd. in October 2004 and solid growth of revenues from outsourced
operations. The decrease from 4Q04 is mainly due to the decrease in
systems development contracts, mainly due to a seasonal fluctuation.
Equipment sales revenues were JPY 273 million in 1Q05, a decrease
of 48.5% compared to 1Q04 and a decrease of 73.8% compared to 4Q04.
Cost and expense
Cost of revenues was JPY 8,118 million in 1Q05, an increase of
9.1% compared to 1Q04 and a decrease of 18.9% compared to 4Q04.
Cost of Revenues
(JPY in Millions)
----------------------------------------------------------------------
1Q05 1Q04 YoY % 4Q04 QoQ %
Change Change
----------------------------------------------------------------------
Total Costs: 8,118 7,443 9.1% 10,012 (18.9%)
----------------------------------------------------------------------
Connectivity & VAS 4,964 4,811 3.2% 5,018 (1.1%)
----------------------------------------------------------------------
SI 2,910 2,157 34.9% 4,030 (27.8%)
----------------------------------------------------------------------
Equipment Sales 244 475 (48.7%) 964 (74.7%)
----------------------------------------------------------------------
Cost of Connectivity and VAS revenues was JPY 4,964 million, an
increase of 3.2% compared to 1Q04 and a decrease of 1.1% compared to
4Q04. The increase from 1Q04 is mainly due to an increase in personnel
expenses and cost for local access lines for Wide-area Ethernet
Services. The decrease from 4Q04 is mainly due to a decrease in
depreciation and amortization. The gross-margin ratio for Connectivity
and VAS in 1Q05 was 13.9%, compared to 11.7% in 1Q04 and 14.4% in
4Q04. The improvement from 1Q04 was mainly due to an increase in
revenues from higher-margin VAS, and a decrease in backbone costs.
Cost of SI revenues was JPY 2,910 million in 1Q05, an increase of
34.9% compared to 1Q04 and a decrease of 27.8% compared to 4Q04. The
gross margin ratio for SI in 1Q05 was 24.2%, compared to 20.0% in 1Q04
and 24.7% in 4Q04. The improvement in margin compared to 1Q04 was
mainly due to the increase in higher-margin systems integration
contracts.
Sales and marketing expenses were JPY 768 million in 1Q05, an
increase of 15.8% compared to 1Q04 and an increase of 4.3% compared to
4Q04. The increase from 1Q04 is mainly due to increases in personnel
and advertising expenses. The increase from 4Q04 is mainly due to an
increase in personnel expenses.
General and administrative expenses were JPY 714 million in 1Q05,
an increase of 15.0% compared to 1Q04 and a decrease of 10.8% compared
to 4Q04. The increase from 1Q04 is mainly due to an increase in
personnel expenses. The decrease from 4Q04 is mainly due to absence of
write down of software licenses that we recorded in 4Q04.
Operating income
Operating income was JPY 247 million in 1Q05, compared to an
operating loss of JPY 100 million in 1Q04 and an operating income of
JPY 656 million in 4Q04. The increase from 1Q04 was mainly due to
improved gross-margins in Connectivity, VAS and SI. The decrease from
4Q04 was mainly due to a decrease in SI revenues.
Other income (expenses) in 1Q05 was JPY 435 million, compared to
other expenses of JPY 151 million in 1Q04 and other income of JPY
1,729 million in 4Q04. The increase from 1Q04 or the decrease from
4Q04 is mainly due to an increase or decrease in gain from sale of
available-for-sale securities. The differences to 1Q04 or 4Q04 also
includes the absence of interest payments for the convertible notes
due March 31, 2005.
Income tax expense for 1Q05 was JPY 38 million, compared to JPY 15
million in 1Q04 and JPY 30 million in 4Q04.
Equity in net income (loss) of equity method investees amounted to
net income of JPY 3 million in 1Q05, compared to net loss of JPY 11
million in 1Q04 and net loss of JPY 37 million in 4Q04.
Net income (loss) was net income of JPY 623 million in 1Q05,
compared to a net loss of JPY 238 million in 1Q04 and net income of
JPY 2,256 million in 4Q04. The increase from 1Q04 or the decrease from
4Q04 is mainly due to the improvement or decrease in operating income,
and an increase or decrease in gain from sale of available-for-sale
securities.
1st Quarter FY2005 Business Review
Analysis by Service
Connectivity and Value-added Services
Number of Contracts for Connectivity Services
1Q05 1Q04 4Q04
----------------------------------------------------------------------
Dedicated Access Service Contracts 12,274 8,076 11,243
----------------------------------------------------------------------
IP Service (Low Bandwidth: 64kbps-
768kbps)(3) 65 76 89
----------------------------------------------------------------------
IP Service (Medium Bandwidth:
1Mbps-99Mbps)(3) 637 594 660
----------------------------------------------------------------------
IP Service (High Bandwidth:
100Mbps-) 131 82 114
----------------------------------------------------------------------
IIJ T1 Standard and IIJ Economy(4) 208 421 276
----------------------------------------------------------------------
IIJ Data Center Connectivity
Service 234 224 231
----------------------------------------------------------------------
IIJ FiberAccess/F and IIJ DSL/F
(Broadband Services) 10,999 6,679 9,873
----------------------------------------------------------------------
Dial-up Access Service Contracts 677,207 708,586 693,976
----------------------------------------------------------------------
Dial-up Access Services, under IIJ
Brand 66,125 73,225 68,068
----------------------------------------------------------------------
Dial-up Access Services, OEM(5) 611,082 635,361 625,908
----------------------------------------------------------------------
Total Contracted Bandwidth 140.9Gbps 95.6Gbps 121.2Gbps
----------------------------------------------------------------------
The total number of contracts for dedicated access services
continued to increase steadily in 1Q05. In IP Services, which are
mainly used for critical services in corporate headquarters, contracts
for 100Mbps and higher increased significantly. The number of contacts
higher than 1Gbps substantially increased to 33 in 1Q05, from 24 in
the previous quarter. The number of contracts recorded for broadband
services was over 10,000 and most new contracts are for multi-site
connectivity. These services are provided with value-added services
and systems integration.
Connectivity and VAS Revenue Breakdown and Cost
(JPY in millions)
1Q05 1Q04 YoY % 4Q04 QoQ %
Change change
---------------------------------------------------------------------
Connectivity Service Revenues 3,446 3,671 (6.1%) 3,559 (3.2%)
---------------------------------------------------------------------
Dedicated Access Service
Revenues 2,747 2,919 (5.9%) 2,841 (3.3%)
---------------------------------------------------------------------
IP Service (6) 2,166 2,279 (5.0%) 2,235 (3.1%)
---------------------------------------------------------------------
IIJ T1 Standard and IIJ
Economy 134 275 (51.2%) 171 (21.4%)
---------------------------------------------------------------------
IIJ FiberAccess/F and IIJ
DSL/F (Broadband Services) 447 365 22.5% 435 2.7%
---------------------------------------------------------------------
Dial-up Access Service
Revenues 699 752 (7.1%) 718 (2.7%)
---------------------------------------------------------------------
Under IIJ Brand 466 509 (8.4%) 471 (1.2%)
---------------------------------------------------------------------
OEM 233 243 (4.3%) 247 (5.6%)
---------------------------------------------------------------------
VAS Revenues 1,388 1,187 16.9% 1,322 5.0%
---------------------------------------------------------------------
Other Revenues 933 592 57.5% 979 (4.7%)
---------------------------------------------------------------------
Total Connectivity and VAS
Revenues 5,767 5,450 5.8% 5,860 (1.6%)
---------------------------------------------------------------------
Cost of Connectivity and VAS 4,964 4,811 3.2% 5,018 (1.1%)
---------------------------------------------------------------------
Backbone Cost (included in the
cost of Connectivity and VAS) 864 985 (12.3%) 831 3.9%
---------------------------------------------------------------------
Connectivity and VAS Gross
Margin Ratio 13.9% 11.7% 14.4%
---------------------------------------------------------------------
VAS revenues increased reflecting an increase in revenues from
data centers and other managed services, reflecting an increase in
demand for various types of packaged outsource services.
Other revenues also increased steadily, mainly due to an increase
in revenue from Wide-area Ethernet services in year-over-year
comparison.
Backbone costs declined in 1Q05 by 12.3% compared to 1Q04 and
increased by 3.9% compared to 4Q04.
Systems Integration
Systems Integration
Revenue Breakdown and Cost
(JPY in millions)
1Q05 1Q04 YoY % 4Q04 QoQ %
change change
----------------------------------------------------------------------
Systems Integration Revenues 3,840 2,695 42.5% 5,352 (28.2%)
----------------------------------------------------------------------
Systems Integration 1,193 1,040 14.7% 2,786 (57.2%)
----------------------------------------------------------------------
Outsourced Operation 2,647 1,655 60.0% 2,566 3.2%
----------------------------------------------------------------------
Cost of Systems Integration 2,910 2,157 34.9% 4,030 (27.8%)
----------------------------------------------------------------------
Systems Integration Gross Margin
Ratio 24.2% 20.0% 24.7%
----------------------------------------------------------------------
Our SI projects are becoming bigger in scale as we include the
whole stream of consulting, design, project management, implementation
and operation. SI revenues in 1Q05 increased compared to 1Q04 largely
due to the steady increase in monthly revenues from outsourced
operations. In addition, the increase from 1Q04 reflected additional
revenues from the purchase of the security system business operations
of Yamatane Co. Ltd. ("Yamatane").
Equipment Sales
Equipment Sales Revenue and Cost
(JPY in millions)
1Q05 1Q04 YoY % 4Q04 QoQ %
change change
----------------------------------------------------------------------
Equipment Sales Revenues 273 530 (48.5%) 1,042 (73.8%)
----------------------------------------------------------------------
Cost of Equipment Sales 244 475 (48.7%) 964 (74.7%)
----------------------------------------------------------------------
Equipment Sales Gross Margin Ratio 10.9% 10.4% 7.6%
----------------------------------------------------------------------
Other Financial Statistics
Other Financial Statistics
(JPY in millions)
1Q05 1Q04 YoY % 4Q04 QoQ %
change change
----------------------------------------------------------------------
Adjusted EBITDA(7) 1,261 884 42.6% 1,698 (25.8%)
----------------------------------------------------------------------
CAPEX, including capital leases(8) 533 1,300 (59.0%) 724 (26.3%)
----------------------------------------------------------------------
Depreciation and amortization(9) 1,014 1,004 1.0% 1,061 (4.4%)
----------------------------------------------------------------------
Major Topics
ADS ratio change and stock split:
In August 2005, IIJ announced that its board of directors approved
a change in the ratio of its American Depositary Shares ("ADSs") to
the shares of common stock of IIJ ("Shares") from 1 ADS = 1 / 2,000 of
a Share to 1 ADS = 1 / 400 of a Share and a stock split (1 to 5) of
Shares. The ratio change and stock split will not affect the total
number of ADSs in issue and are not expected to affect the ADS trading
price on the NASDAQ market, because: (1) the ADS ratio change will be
reciprocal to the stock split and (2) the effective date for the ratio
change will be the payable date for the stock split. In connection
with the ratio change and stock split, the ADS depositary facility at
The Bank of New York will be temporarily closed for deposits of Shares
for delivery of American Depositary Receipts ("ADRs") representing the
ADSs and withdrawal of Shares upon surrender of ADRs from and
including Friday, August 26, 2005, to, and including, the payable date
for the stock split, Tuesday, October 11, 2005. The holders of IIJ
ADSs will be able to trade its ADSs on the NASDAQ market as usual
during the period in which the depositary facility is closed for
deposits and withdrawals of Shares.
IIJ and IIJ Technology to form alliance with HP Japan to deliver
RFID platform:
In August 2005, IIJ, IIJ Technology and Hewlett-Packard Japan,
Ltd. announced that they have formed a business alliance for the
commercialization of a radio frequency identification ("RFID")
platform using networks based on international RFID standards called
the EPCglobal NetworkTM. Through this alliance, the three companies
will offer global real-time supply chain management ("SCM"), which can
be put to practical use for intercompany and international logistics.
Reconciliation of Non-GAAP Financial Measures
The following table summarizes the reconciliation of adjusted
EBITDA to net income according to the consolidated statements of
operations that are prepared in accordance with accounting principles
generally accepted in the U.S. and presented in Appendix 1:
Adjusted EBITDA
(JPY in millions)
1Q05 1Q04 4Q04
----------------------------------------------------------------------
Adjusted EBITDA 1,261 884 1,698
----------------------------------------------------------------------
Depreciation and Amortization(10) (1,014) (984) (1,042)
----------------------------------------------------------------------
Operating Income 247 (100) 656
----------------------------------------------------------------------
Other Income (Expenses) 435 (151) 1,729
----------------------------------------------------------------------
Income Tax Expense 38 15 30
----------------------------------------------------------------------
Minority Interests in (Earnings) Losses of
Subsidiaries (24) 39 (62)
----------------------------------------------------------------------
Equity in Net Income (Loss) of Equity Method
Investees 3 (11) (37)
----------------------------------------------------------------------
Net Income (Loss) 623 (238) 2,256
----------------------------------------------------------------------
The following table summarizes the reconciliation of capital
expenditures to the purchase of property and equipment according to
the consolidated statements of cash flows that are prepared and
presented in accordance with accounting principles generally accepted
in the U.S. in Appendix 3:
CAPEX
(JPY in millions)
1Q05 1Q04 4Q04
----------------------------------------------------------------------
Capital Expenditures 533 1,300 724
----------------------------------------------------------------------
Acquisition of Assets by Entering into
Capital Leases 320 977 627
----------------------------------------------------------------------
Purchase of Property and Equipment 213 323 97
----------------------------------------------------------------------
Target
IIJ maintains its target for FY2005. As announced on May 27, 2005,
the targets for consolidated financial results for FY2005 are as
follows:
Revenue - JPY 46,330 million (an increase of 11.1% compared to FY2004)
Operating income - JPY 2,320 million (an increase of 85.9% compared to
FY2004)
Net income - JPY 3,700 million (an increase of 27.3% compared to
FY2004)
Management Message/Webcast
On August 13, 2005, IIJ will present its management message and
the Company's results and outlook by webcast. For details, please
access the following URL: http://www.iij.ad.jp/en/IR/
About Internet Initiative Japan Inc.
Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ:
IIJI) is one of Japan's leading Internet-access and comprehensive
network solutions providers. The company has built one of the largest
Internet backbone networks in Japan, and between Japan and the United
States. IIJ and its group of companies provide total network solutions
that mainly cater to high-end corporate customers. The company's
services include high-quality systems integration and security
services, Internet access, hosting/housing, and content design.
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 FY2005 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
achieve or sustain profitability in the near future; IIJ's ability to
compete effectively against competitors which have greater financial,
marketing and other resources; IIJ's ability to attract and retain
qualified personnel; and other risks referred to in IIJ's annual
report on Form 20-F filed with the United States Securities and
Exchange Commission ("SEC") on August 3, 2005, and from time to time
in other filings with the SEC available at www.sec.gov.
(1)Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with U.S. GAAP. All
financial figures are unaudited and consolidated. For all 1Q05
results, translations of Japanese yen amounts into US dollars are
solely for the convenience of readers outside of Japan and have been
made at the rate of JPY 110.91 = US$1.00, the approximate exchange
rate on June 30, 2005. 1Q04 figures have been restated to reflect the
change in income tax expense (benefit) previously announced by IIJ in
its press release dated April 11, 2005.
(2)This Overview and Business Outlook contains forward-looking
statements and projections such as statements regarding FY2005
revenues and operating and net profitability that are subject to known
and unknown risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by these statements.
These risks and uncertainties include, but are not limited to, the
factors noted at the end of this release and to the risk factors and
other information included in IIJ's annual report on Form 20-F, filed
with the SEC on August 3, 2005, as well as other filings and documents
furnished to the Securities and Exchange Commission. IIJ plans to keep
this press release publicly available on its Web site (www.iij.ad.jp),
but may discontinue this practice at any time. IIJ intends to publish
its next Overview and Business Outlook in its 2Q05 earnings release,
presently scheduled for release in November 2005.
(3)Including IPv6 Services.
(4)Referred to as "Limited Functionality Services" in 1Q04 for the
services with local access not shared, limited on several
functionality compared to IP service such as number of IP address
allocated and fixed speed of 64kbps, 128kbps and 1.5Mbps.
(5)OEM stands for Original Equipment Manufacturer.
(6)IP Service revenues includes revenues from Data Center
Connectivity Service.
(7)Please refer to the Reconciliation of Non-GAAP Financial
Measures below.
(8)Please refer to the Reconciliation of Non-GAAP Financial
Measures on the next page.
(9)Depreciation and amortization includes amortization of issuance
cost of convertible notes and intangible assets.
(10)Depreciation and amortization excludes amortization of
issuance cost of convertible notes that was included in other
expenses.
INTERNET INITIATIVE JAPAN INC. Appendix 1
------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)
------------------------------------------------
For the Three Months Ended Jun 30, 2005, Jun 30, 2004 and Mar 31, 2005
(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, 2005
-----------------------------
% of
Total
USD(1) JPY Revenues
------- --------- ----------
Revenues:
Connectivity and value-added services:
Dedicated access services 24,767 2,746,900 27.8%
Dial-up access services 6,299 698,670 7.1
Value-added services 12,514 1,387,893 14.1
Other 8,413 933,120 9.4
------- ----------- ------
Total connectivity and
value-added services 51,993 5,766,583 58.4
Systems integration revenues 34,623 3,840,075 38.9
Equipment sales 2,466 273,438 2.7
------- ----------- ------
Total revenues 89,082 9,880,096 100.0
------- ----------- ------
Costs and expenses:
Cost of connectivity and value-added
services 44,756 4,963,835 50.2
Cost of systems integration revenues 26,240 2,910,262 29.5
Cost of equipment sales 2,197 243,699 2.5
------- ----------- ------
Total costs 73,193 8,117,796 82.2
Sales and marketing 6,923 767,801 7.8
General and administrative 6,437 713,917 7.2
Research and development 305 33,904 0.3
------- ----------- ------
Total costs and expenses 86,858 9,633,418 97.5
------- ----------- ------
Operating income (loss) 2,224 246,678 2.5
------- ----------- ------
Other income (expenses) 3,924 435,233 4.4
------- ----------- ------
Income (loss) before income tax expense,
minority interests and equity in net
income (loss) of equity method
investees 6,148 681,911 6.9
------- ----------- ------
Income tax expense 344 38,111 0.4
Minority interests in
(earnings) losses of subsidiaries (215) (23,855) (0.2)
Equity in net income (loss) of equity
method investees 25 2,729 0.0
------- ----------- ------
Net income (loss) 5,614 622,674 6.3%
======= =========== ======
Basic And Diluted Net Income (Loss) Per Share 16,254
Basic And Diluted Net Income (Loss) Per ADS Equivalent 8.13
Weighted Average Number of Shares 38,309
Weighted Average Number of ADS Equivalents 76,618,779
Jun 30, 2004
-----------------------------
% of
Total YOY
JPY Revenues Chg %
----------- -------- --------
Revenues:
Connectivity and value-added services:
Dedicated access services 2,918,488 33.6% (5.9%)
Dial-up access services 751,933 8.7 (7.1)
Value-added services 1,186,837 13.7 16.9
Other 592,390 6.8 57.5
----------- -------- --------
Total connectivity and
value-added services 5,449,648 62.8 5.8
Systems integration revenues 2,694,638 31.1 42.5
Equipment sales 530,621 6.1 (48.5)
----------- -------- --------
Total revenues 8,674,907 100.0 13.9
----------- -------- --------
Costs and expenses:
Cost of connectivity and value-added
services 4,811,341 55.5 3.2
Cost of systems integration revenues 2,156,620 24.8 34.9
Cost of equipment sales 475,466 5.5 (48.7)
----------- -------- --------
Total costs 7,443,427 85.8 9.1
Sales and marketing 662,950 7.6 15.8
General and administrative 620,651 7.2 15.0
Research and development 48,368 0.6 (29.9)
----------- -------- --------
Total costs and expenses 8,775,396 101.2 9.8
----------- -------- --------
Operating income (loss) (100,489) (1.2) (345.5)
----------- -------- --------
Other income (expenses) (150,700) (1.7) (388.8)
----------- -------- --------
Income (loss) before income tax expense, minority
interests and equity in net income
(loss) of equity method investees (251,189) (2.9) (371.5)
----------- -------- --------
Income tax expense 15,089 0.2 152.6
Minority interests in (earnings) losses
of subsidiaries 39,184 0.5 (160.9)
Equity in net income (loss) of equity
method investees (10,995) (0.1) (124.8)
----------- -------- --------
Net income (loss) (238,089) (2.7%) (361.5%)
=========== ======== ========
Basic And Diluted Net Income (Loss)
Per Share (6,214)
Basic And Diluted Net Income (Loss)
Per ADS Equivalent (3.10)
Weighted Average Number of Shares 38,312
Weighted Average Number of ADS
Equivalents 76,623,702
Sequential Comparison
Mar 31, 2005
-------------------------------
% of
Total QOQ
JPY Revenues Chg %
----------- ---------- --------
Revenues:
Connectivity and value-added services:
Dedicated access services 2,840,903 23.2% (3.3%)
Dial-up access services 718,285 5.8 (2.7)
Value-added services 1,321,816 10.8 5.0
Other 978,940 8.0 (4.7)
----------- ---------- --------
Total connectivity and
value-added services 5,859,944 47.8 (1.6)
Systems integration revenues 5,351,865 43.7 (28.2)
Equipment sales 1,042,540 8.5 (73.8)
----------- ---------- --------
Total revenues 12,254,349 100.0 (19.4)
----------- ---------- --------
Costs and expenses:
Cost of connectivity and value-added
services 5,018,522 40.9 (1.1)
Cost of systems integration revenues 4,030,274 32.9 (27.8)
Cost of equipment sales 963,665 7.9 (74.7)
----------- ---------- --------
Total costs 10,012,461 81.7 (18.9)
Sales and marketing 736,219 6.0 4.3
General and administrative 799,929 6.5 (10.8)
Research and development 49,968 0.4 (32.1)
----------- ---------- --------
Total costs and expenses 11,598,577 94.6 (16.9)
----------- ---------- --------
Operating income (loss) 655,772 5.4 (62.4)
----------- ---------- --------
Other income (expenses) 1,729,122 14.1 (74.8)
----------- ---------- --------
Income (loss) before income tax
expense, minority interests
and equity in net income
(loss) of equity method investees 2,384,894 19.5 (71.4)
----------- ---------- --------
Income tax expense 29,839 0.3 27.7
Minority interests in (earnings) losses
of subsidiaries (62,468) (0.5) (61.8)
Equity in net income (loss) of equity
method investees (36,966) (0.3) (107.4)
----------- ---------- --------
Net income (loss) 2,255,621 18.4% (72.4%)
=========== ========== ========
Basic And Diluted
Net Income (Loss) Per Share 58,875
Basic And Diluted Net Income (Loss)
Per ADS Equivalent 29.44
Weighted Average Number of Shares 38,312
Weighted Average Number of ADS
Equivalents 76,623,702
Note (1): The translations of Japanese yen amounts into US dollar
amounts with respect to the three months ended Jun 30, 2005
are included solely for the convenience of readers outside
Japan and have been made at the rate of JPY 110.91 =$1, the
approximate rate of exchange on Jun 30, 2005.
INTERNET INITIATIVE JAPAN INC. Appendix 2
------------------------------
CONSOLIDATED BALANCE SHEETS(UNAUDITED)
--------------------------------------
As of Jun 30, 2005, Jun 30, 2004 and Mar 31, 2005
(Expressed in Thousands of Japanese Yen (JPY) and
U.S. Dollars (USD)) (1)
Jun 30, 2005
------------------------------
USD (1) JPY %
--------- ------------ -------
ASSETS
------
Current Assets:
Cash and cash equivalents 46,041 5,106,388 15.1%
Short-term investments 2,747 304,628 0.9
Accounts receivable, net 52,230 5,792,808 17.2
Inventories 2,392 265,286 0.8
Prepaid expenses 11,391 1,263,409 3.8
Other current assets 728 80,797 0.2
--------- ------------ -------
Total current assets 115,529 12,813,316 38.0
Investments in and Advances to Equity
Method Investees 6,105 677,035 2.0
Other Investments 71,069 7,882,229 23.4
Property and Equipment, net 82,553 9,155,981 27.1
Guarantee Deposits 18,855 2,091,237 6.2
Other Assets 10,138 1,124,441 3.3
--------- ------------ -------
Total assets 304,249 33,744,239 100.0%
========= ============ =======
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Short-term borrowings 42,588 4,723,387 14.0%
Payable under securities loan
agreement 13,799 1,530,400 4.5
Accounts payable 33,047 3,665,233 10.9
Accrued expenses 4,720 523,478 1.6
Other current liabilities 8,284 918,829 2.7
Long-term borrowings-current portion 28,735 3,187,023 9.4
Convertible notes - - -
Capital lease obligations-current
portion 24,513 2,718,759 8.1
--------- ------------ -------
Total current liabilities 155,686 17,267,109 51.2
Long-term Borrowings 7,847 870,342 2.6
Capital Lease Obligations-Noncurrent 35,618 3,950,359 11.7
Accrued Retirement and Pension Costs 1,528 169,460 0.5
Other Noncurrent Liabilities 2,225 246,818 0.7
--------- ------------ -------
Total liabilities 202,904 22,504,088 66.7
--------- ------------ -------
Minority Interest 9,496 1,053,212 3.1
--------- ------------ -------
Shareholders' Equity:
Common stock 124,113 13,765,372 40.8
Additional paid-in capital 213,125 23,637,628 70.0
Accumulated deficit (304,854) (33,811,378) (100.2)
Accumulated other comprehensive income 60,225 6,679,555 19.8
Treasury stock (760) (84,238) (0.2)
--------- ------------ -------
Total shareholders' equity 91,849 10,186,939 30.2
--------- ------------ -------
Total liabilities and
shareholders' equity 304,249 33,744,239 100.0%
========= ============ =======
Jun 30, 2004 Mar 31, 2005
------------------- -------------------
JPY % JPY %
------------ ------ ------------ ------
ASSETS
------
Current Assets:
Cash and cash equivalents 10,627,203 25.3% 5,286,477 14.2%
Short-term investments - - - -
Accounts receivable, net 5,377,230 12.8 7,407,439 20.0
Inventories 413,477 1.0 140,096 0.4
Prepaid expenses 932,097 2.2 604,935 1.6
Other current assets 457,325 1.1 108,228 0.3
------------ ------ ------------ ------
Total current assets 17,807,332 42.4 13,547,175 36.5
Investments in and Advances to
Equity Method Investees 769,363 1.8 713,607 1.9
Other Investments 11,919,229 28.3 9,930,781 26.8
Property and Equipment, net 8,567,329 20.4 9,722,366 26.2
Guarantee Deposits 2,059,980 4.9 2,050,665 5.5
Other Assets 915,548 2.2 1,151,877 3.1
------------ ------ ------------ ------
Total assets 42,038,781 100.0% 37,116,471 100.0%
============ ====== ============ ======
LIABILITIES AND SHAREHOLDERS'
EQUITY
-----------------------------
Current Liabilities:
Short-term borrowings 5,363,001 12.8% 4,724,633 12.7%
Payable under securities loan
agreement - - 1,729,520 4.7
Accounts payable 3,754,214 8.9 4,860,733 13.1
Accrued expenses 480,824 1.1 541,118 1.4
Other current liabilities 728,386 1.7 817,517 2.2
Long-term borrowings-current
portion 1,549,189 3.7 2,736,056 7.4
Convertible notes 11,088,000 26.4 - -
Capital lease obligations-
current portion 2,403,477 5.7 2,774,974 7.5
------------ ------ ------------ ------
Total current
liabilities 25,367,091 60.3 18,184,551 49.0
Long-term Borrowings 2,270,366 5.4 1,529,963 4.1
Capital Lease Obligations-
Noncurrent 3,123,878 7.4 4,339,028 11.7
Accrued Retirement and
Pension Costs 89,037 0.2 143,346 0.4
Other Noncurrent Liabilities 233,046 0.6 275,533 0.7
------------ ------ ------------ ------
Total liabilities 31,083,418 73.9 24,472,421 65.9
------------ ------ ------------ ------
Minority Interest 901,088 2.2 1,028,977 2.8
------------ ------ ------------ ------
Shareholders' Equity:
Common stock 13,765,372 32.8 13,765,372 37.1
Additional paid-in capital 23,637,628 56.2 23,637,628 63.7
Accumulated deficit (37,578,410) (89.4) (34,434,052) (92.8)
Accumulated other
comprehensive income 10,273,685 24.4 8,690,125 23.4
Treasury stock (44,000) (0.1) (44,000) (0.1)
------------ ------ ------------ ------
Total shareholders'
equity 10,054,275 23.9 11,615,073 31.3
------------ ------ ------------ ------
Total liabilities and
shareholders' equity 42,038,781 100.0% 37,116,471 100.0%
============ ====== ============ ======
Note (1): The translations of Japanese yen amounts into US dollar
amounts with respect to Jun 30, 2005 are included solely for
the convenience of readers outside Japan and have been made
at the rate of JPY 110.91 =$1, the approximate rate of
exchange on Jun 30, 2005.
INTERNET INITIATIVE JAPAN INC. Appendix 3
------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)
----------------------------------------------------------
For the Three Months Ended Jun 30, 2005, Jun 30, 2004 and Mar 31, 2004
(Expressed in Thousands of Japanese Yen (JPY) and
U.S. Dollars (USD)) (1)
Jun 30, Mar 31,
Jun 30, 2005 2004 2005
-------------------- ----------- ------------
USD (1) JPY JPY JPY
-------- ----------- ----------- ------------
Operating Activities:
Net income (loss) 5,614 622,674 (238,089) 2,255,621
Depreciation and
amortization 9,140 1,013,745 1,004,170 1,060,944
Provision for
(reversal of)
doubtful accounts (48) (5,339) (12,936) 36,204
Equity in net
(income) loss of
equity method
investees (25) (2,729) 10,995 36,966
Minority interests
in earnings (losses)
of subsidiaries 215 23,855 (39,184) 62,468
Foreign exchange
gains (56) (6,278) (7,585) (8,641)
Loss on retirement
of convertible notes - - 5,195 -
Net losses (gains) on
other investments (4,407) (488,758) 2,749 (1,816,676)
Decrease (increase)
in accounts
receivable 14,619 1,621,419 3,627,399 (1,206,074)
Increase (decrease)
in accounts payable (10,215) (1,132,992) (3,094,772) 1,205,665
Decrease (increase)
in inventories (1,129) (125,190) 24,958 221,788
Deferred income taxes 165 18,343 - (11,656)
Other (4,609) (511,252) (255,036) 704,443
-------- ----------- ----------- ------------
Net cash provided by
operating activities 9,264 1,027,498 1,027,864 2,541,052
-------- ----------- ----------- ------------
Investing Activities:
Purchase of property
and equipment (1,925) (213,485) (323,210) (96,542)
Purchase of
subsidiary stock - - - (50,000)
Proceeds from sales
of other investments 4,639 514,460 91,286 2,008,650
Purchase of short-
term and other
investments (2,699) (299,311) (2,290) (2,339)
Refund (payment) of
guarantee deposits-
net (354) (39,210) 14,528 (3,330)
Other (49) (5,450) (4,851) (9,495)
-------- ----------- ----------- ------------
Net cash provided by
(used in) investing
activities (388) (42,996) (224,537) 1,846,944
-------- ----------- ----------- ------------
Financing Activities:
Repayments of long-
term borrowings (1,881) (208,654) (36,710) (308,414)
Proceeds from
securities loan
agreement - - - 1,729,520
Repayments of
securities loan
agreement (1,796) (199,120) - (722,800)
Redemption of
convertible notes - - (745,488) (11,088,000)
Principal payments
under capital leases (6,914) (766,807) (669,047) (753,177)
Net decrease in
short-term
borrowings (11) (1,246) (1,201,093) (101,211)
Proceeds from
issuance of
common stock
of a subsidiary - - 188,632 -
-------- ----------- ----------- ------------
Net cash used in
financing
activities (10,602) (1,175,827) (2,463,706) (11,244,082)
-------- ----------- ----------- ------------
Effect of Exchange Rate
Changes on Cash 101 11,236 3,343 (16,227)
-------- ----------- ----------- ------------
Net Decrease in Cash and
Cash Equivalents (1,624) (180,089) (1,657,036) (6,872,313)
-------- ----------- ----------- ------------
Cash and Cash
Equivalents, Beginning
of Period 47,665 5,286,477 12,284,239 12,158,790
-------- ----------- ----------- ------------
Cash and Cash
Equivalents, End of
Period 46,041 5,106,388 10,627,203 5,286,477
======== =========== =========== ============
Note (1): The translations of Japanese yen amounts into US dollar
amounts with respect to the three months ended Jun 30, 2005
are included solely for the convenience of readers outside
Japan and have been made at the rate of JPY110.91 =$1, the
approximate rate of exchange on Jun 30, 2005.
MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4951714
CONTACT: IIJ Corporate Communications
Taisuke ONO or Naoshi YONEYAMA, +81-3-5259-6500
ir@iij.ad.jp
http://www.iij.ad.jp/
Exhibit 2
IIJ Group Announces Corporate Reorganization
to Streamline Delivery of Total Network Solutions
TOKYO--(BUSINESS WIRE)--Aug. 12, 2005--Internet Initiative Japan
Inc. ("IIJ", NASDAQ: IIJI), one of Japan's leading Internet-access and
comprehensive network solutions providers, today announced that it
will reorganize its group companies in order to reinforce the
Company's resources and potential to effectively provide total network
solutions to corporate users in Japan. As the demand for such services
continues to increase, IIJ plans to expand its business by reinforcing
its solutions business while closely controlling costs. With the
reorganization, IIJ maintains its financial target as announced on May
27, 2005.
"Ever since IIJ launched Internet connectivity services as a
pioneer in Japan over twelve years ago, we have been constantly
developing new services and expanding our business by leveraging our
advanced Internet related-engineering skills and anticipating the
needs of our customers, which are mainly large corporations and public
organizations," said Koichi Suzuki, President and CEO of IIJ. "We have
been a leader in the creation of new Internet businesses in Japan and
have established several joint ventures with business partners since
the earliest stages of Japanese Internet business. These businesses
include Internet broadcasting in 1995, a primary Internet backbone
network in Asia in 1995 and a systems integration business utilizing
Internet technology in 1996, and other new, innovative
Internet-related businesses. However, what is required today is not
individual technologies or services, but a highly integrated suite of
total solutions, including the design, implementation and operation of
entire network systems. This is especially important given that
Internet technologies are getting more advanced and complicated as
they are incorporated in corporate Intranet and business systems."
To meet these customers' needs and to reinforce the Company's
focus and efficiency, IIJ will reorganize its businesses as follows:
1. Summary of Business Reorganization
(1) IIJ Media Communications Inc. ("IIJ-MC") will transfer its
systems integration ("SI") business to IIJ Technology Inc.
("IIJ-Tech") and integrate its broadcasting business and
application hosting business with IIJ by merger.
(2) Asia Internet Holding Co., Ltd. ("AIH"), which engages in
the Internet connectivity and VPN businesses in Asia, will
merge with IIJ.
2. Integration of IIJ-MC
(1) Merger Steps
IIJ will acquire 39.9% of the shares of IIJ-MC from the
minority shareholders in order to make IIJ-MC IIJ's
wholly-owned subsidiary. Following this acquisition, the
SI business of IIJ-MC will be spun off to IIJ-Tech, and
the remaining broadcasting and application hosting
businesses of IIJ-MC will be integrated into IIJ.
(2) Schedule of the Merger
August 12, 2005 Merger contract to be concluded between
IIJ and IIJ-MC; spin-off contract to be
concluded between IIJ-MC and IIJ-Tech
August 19, 2005 IIJ-MC to become a wholly-owned
subsidiary of IIJ
October 1, 2005 Spin off of IIJ-MC's SI business to
IIJ-Tech
Merger between IIJ-MC and IIJ
(3) Effect on IIJ's consolidated financial results
IIJ will maintain its financial target as announced on May
27, 2005.
3. Merger of AIH
(1) Merger Steps
IIJ will acquire 73.3% shares of AIH, IIJ's equity method
affiliate, from AIH's other shareholders, and will merge
with AIH, with IIJ as the surviving entity. Upon
completion of this merger, IIJ will take over AIH's
Internet connectivity and VPN businesses in Asia.
(2) Schedule of the Merger
August 12, 2005 Contract of merger to be concluded
between IIJ and AIH
August 19, 2005 AIH to become a wholly-owned subsidiary
of IIJ
October 1, 2005 Merger between AIH and IIJ
(3) Effect on IIJ's Consolidated Financial Results
IIJ and AIH have interconnected their respective Internet
backbones. IIJ has been providing AIH with Internet
transit to Japan and the USA, while AIH has been providing
IIJ with Internet transit to Asian countries. This merger
will have the following effects on IIJ's consolidated
financial results: (1) a decrease in the revenue from
Internet connectivity provided to AIH, and (2) a decrease
in the cost related to Internet connectivity to Asia. IIJ
expects that there will be no material effect on
consolidated operating income for the fiscal year 2005
owing to the reduction in sales and marketing cost and
general and administrative costs of the AIH business
following the integration of AIH into IIJ. IIJ is
maintaining its financial target as announced on May 27,
2005.
4. Summary of IIJ and IIJ-Tech after the Reorganization
(1) IIJ
- There will be no change to the corporate name,
businesses, corporate address, and representatives.
- There will be no change to IIJ's capital and shares
outstanding since both IIJ-MC and AIH will be merged
into IIJ after becoming wholly-owned subsidiaries of
IIJ.
(2) IIJ-Tech
- There will be no change to the corporate name,
businesses, address of the head office, and
representatives.
- Capital and shares outstanding:
IIJ-Tech will issue 1,235 shares to IIJ-MC to take over
the SI business from IIJ-MC. As a result, IIJ-Tech's
capital and shares outstanding will be as follows.
----------------------------------------------------------------------
Before After
----------------------------------------------------------------------
Capital JPY 2,200 million JPY 2,262 million
----------------------------------------------------------------------
Shares 44,000 shares 45,235 shares
outstanding
----------------------------------------------------------------------
- Shareholding by IIJ:
By merger with IIJ-MC, IIJ will own IIJ-Tech' shares to
be issued to IIJ-MC for the business transfer of
IIJ-MC's SI business. In addition, IIJ will acquire
shares of IIJ-Tech from its minority shareholders.
----------------------------------------------------------------------
Before After
----------------------------------------------------------------------
Shares owned by IIJ 30,370 shares 32,605 shares
----------------------------------------------------------------------
Shareholding by IIJ (%) 69.0% 72.1%
----------------------------------------------------------------------
(3) IIJ's other group companies:
IIJ's shareholding in Net Care Inc. ("NC"), a 52.5%
consolidated subsidiary, will change as follows, as IIJ
will take over a portion of NC's shares from NC minority
shareholders on August 19, 2005.
----------------------------------------------------------------------
Before After
----------------------------------------------------------------------
Shares owned 10,500 shares 11,400 shares
by IIJ
----------------------------------------------------------------------
Shareholding by
IIJ (%) 52.5% 57.0%
----------------------------------------------------------------------
About IIJ
Founded in 1992, Internet Initiative Japan Inc. ("IIJ", NASDAQ:
IIJI) is one of Japan's leading Internet-access and comprehensive
network solutions providers. The company has built one of the largest
Internet backbone networks in Japan, and between Japan and the United
States. IIJ and its group of companies provide total network solutions
that mainly cater to high-end corporate customers. The company's
services include high-quality systems integration and security
services, Internet access, hosting/housing, and content design.
This release contains forward-looking statements such as forecasts
of results of operations, management strategies, objectives and plans,
and forecasts of operational data. All forward-looking statements that
are not historical facts are based on management's current plans,
expectations, assumptions and estimates based on the information
currently available. Some projected numbers were derived using certain
assumptions that are indispensable for making such projections in
addition to historical facts. These forward-looking statements are
subject to various known and unknown risks, uncertainties and other
factors that could cause our actual results to differ materially from
those contained in or suggested by any forward-looking statement.
Readers are referred to the documents furnished 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.
(Reference) Summary of the companies concerned (As of March 31, 2005)
----------------------------------------------------------------------
Corporate Name IIJ Media Communications Asia Internet Holding
Inc. Co., Ltd.
----------------------------------------------------------------------
Businesses Provision of Internet Implementation and
broadcasting, content operation of Internet
distribution, content backbone in Asia and
production and systems provision of Internet
integration connectivity services
to telecommunications
carriers in Asia
----------------------------------------------------------------------
Established January 30, 1995 November 17, 1995
----------------------------------------------------------------------
Head office Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo
----------------------------------------------------------------------
Representative President & CEO Koichi President & CEO Koichi
Suzuki Suzuki
----------------------------------------------------------------------
Capital JPY 80 million JPY 1,624 million
----------------------------------------------------------------------
Shares outstanding 1,600 shares 32,484 shares
----------------------------------------------------------------------
Common equity JPY 113 million JPY 1,030 million
----------------------------------------------------------------------
Fiscal year end March 31 March 31
----------------------------------------------------------------------
Shareholders Internet Initiative Japan Sumitomo Corporation
Inc. Internet Initiative
Sumitomo Corporation Japan Inc.
Itochu Corporation NTT Communications
etc. Corporation
etc.
----------------------------------------------------------------------
Non-consolidated Revenues 911 Revenues 1,179
Financial results --------------------------------------------------
Operating Income 24 Operating Income (161)
--------------------------------------------------
(FY2004, JPY Ordinary Income 9 Ordinary Income (158)
million) --------------------------------------------------
Net Income 8 Net Income (308)
----------------------------------------------------------------------
----------------------------------------------------------------------
Corporate Name Internet Initiative Japan IIJ Technology Inc.
Inc.
----------------------------------------------------------------------
Business Provision of Internet Consultation, design,
connectivity, value-added development,
services such as implementation,
outsourcing, systems operation and
integration and equipment maintenance of
sales etc. systems
----------------------------------------------------------------------
Established December 3, 1992 November 26, 1996
----------------------------------------------------------------------
Head office Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo
----------------------------------------------------------------------
Representative President & CEO Koichi President & COO
Suzuki Ryosuke Ariga
----------------------------------------------------------------------
Capital JPY 13,765 million JPY 2,200 million
----------------------------------------------------------------------
Shares outstanding 38,360 shares 44,000 shares
----------------------------------------------------------------------
Common equity JPY 9,141 million JPY 1,529 million
----------------------------------------------------------------------
Fiscal year end March 31 March 31
----------------------------------------------------------------------
Shareholders Nippon Telegraph and Internet Initiative
Telephone Corporation Japan Inc.
Sumitomo Corporation Itochu Corporation
Itochu Corporation Sumitomo Corporation
etc. etc.
----------------------------------------------------------------------
Non-consolidated Revenues 33,711 Revenues 13,716
Financial results --------------------------------------------------
Operating Income 638 Operating Income 202
--------------------------------------------------
(FY2004, JPY Ordinary Income 428 Ordinary Income 228
million)
--------------------------------------------------
Net Income 2,696 Net Income 165
----------------------------------------------------------------------
CONTACT: IIJ Corporate Communications
+81-3-5259-6310
press@iij.ad.jp
http://www.iij.ad.jp/
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: August 15, 2005 /s/ Koichi Suzuki
----------------------------------------
Koichi Suzuki
President, Chief Executive Officer and
Representative Director